Risk Benefits

The National Tertiary Retirement Fund offers death and medical disability benefits to contributing members of the Fund. These benefits are referred to as Risk Benefits within the Fund. It is, however, important that members understand the different benefits structures offered by the Fund before choosing a Risk Benefits option. Kindly refer to your member benefits statement which specifies your current Risk Benefits structure.

Please click here to view a summary of the Risk Benefits structure.

If any conflict arises between this document and the Rules of the Fund and the Insurance Policy, the Rules of the Fund and the Insurance Policy will prevail.

Important notes in respect of Death Benefits

Should a member’s pensionable salary, times the multiple of salary set out in the table above, exceeds R17 million for any of the options above, then the member will be required to provide evidence of good health in order to qualify for these benefits. If a member fails to do so, the benefit will be “capped” at R17 million. The mentioned R17 million is called the “free cover limit”, which is applicable to the calculation of the death benefit.
Should a member elect option 1 or 2, then the member may increase his or her cover to option 2 or 3 at the date of the member’s marriage or birth of a child without providing evidence of good health. In addition, on 1 October each year, members may elect to move to a higher percentage option, although the Insurer may require a member to provide evidence of good health.
The Fund’s obligation in terms of the benefit value is limited to the amount paid by the Insurer. A member’s beneficiaries may apply this benefit at their discretion, after which the Fund will have no further obligation to the family or next of kin of the deceased member.

Important notes in respect of Medical Disability Benefits

A waiting period of six (6) months applies before the medical disability benefit in respect of a flexible risk member may become payable. In order to be entitled to the medical disability benefit, both a flexible and fixed risk member must be regarded as totally and permanently medically disabled for his or her own or similar occupation.
The same provisions relating to increasing a member’s flexible risk cover from a lower to a higher percentage as for death benefits applies, except in addition, a member’s medical disability cover will be limited to the option 1 multiple if the member’s medical disability condition arises within 12 months after the member has increased the cover from a known health condition that existed six (6) months or less before it was increased.
In the event that a flexible risk member is entitled to a medical disability benefit, the amount as per the table above is “capped” to a maximum of R14.4 million. The member’s total accumulated savings (Fund Credit) is payable in addition to the insured benefit.
If a member is regarded as medically disabled within five (5) years of the member’s normal retirement age of 60 or 65, the medical disability benefit will be reduced by 1/60th for each month remaining until that retirement age. For example, if the member is regarded as medically disabled 12 months before normal retirement age, the benefit will be reduced by 12/60thsof the benefit set out in the table above.
Members will not be covered for any medical disability that arises from a self-inflicted injury as defined in the policy conditions.
Members may elect to receive a maximum of one-third (1/3rd) of the total medical disability benefit as a lump sum in cash, whilst the balance should be used to secure a monthly income from by means of a Fund annuity; or from an external Insurer, after which the Fund will have no further obligation in this respect.
It should furthermore be noted that there are a number of general exclusions that apply related to war, terrorism, the use of chemical or biological weapons as well as claims arising from civil commotion, riots, strikes and labour disturbances. These exclusions are dealt with fully in the insurance policy.

Please note:
Members should consult a Financial Advisor to ensure that they clearly understand the implications of their choices. Members should furthermore ensure that they are fully aware of the Risk Benefits structures and categories they elect before they exercise any choice in this regard and cannot hold the Fund, the Insurer, the Board, the Principal Officer of the Fund, the Employer and/or the Administrator of the Fund (Momentum Retirement Administrators) responsible for any claim arising from their Risk Benefits structure choices. Members should also refer to their member benefits statements which clearly specify their current Risk Benefits structures and categories.