Death Benefits

NTRF Benefits on death after retirement

What happens if you pass on and you are a pensioner (life annuitant) – are there still some benefits due by the NTRF?

Your pension and spouse’s pension where applicable:

• The full pension will be paid for a minimum of five years from retirement should the principal pensioner passes away during this period.
•  A spouse’s pension of 75% of the pensioner’s pension is paid provided the spouse was registered as the qualifying spouse at date of retirement meaning the initial pension calculation take her/him into account at this date; noting as per the above this is 100% of the pensioner’s pension for the first five years.
• Please note that if you were a pensioner on 1 December 1994 only a 50% spouse’s pension applies unless you have opted to reduce your pension at a time in lieu of a 75% pension.

Lump sum payable on death of principal pensioner (member who retired from the Fund)

• R 15000 benefit on the death of the principal pensioner.

Benefits after both the principal pensioner and spouse deceased:

• Once both the principal pensioner and spouse have passed away, a test is performed to determine whether there is a balance payable to the next of kin. This balance is determined by taking the total capital value of the retirement benefit minus all cash lump sums paid as well as pensions to date of death of both the principal pensioner and the spouse. The Actuary of the Fund will confirm this value, if any. On average this benefit will exist up until approximately 12 years after retirement.
• If the principal pensioner passed away on or before 31 January 2020, this benefit will be distributed in terms of section 37C of the Pension Funds Act which means that the Board of the Fund has the discretion to allocate the benefit in terms of the Act. It is for this reason that it is advised pensioners update their expression of wish form regularly to ensure the Fund has the most recent factual information on record. Note the Fund will use this expression of wish form to guide them in the allocation of this benefit.
• If the principal pensioner passed away on or after 1 February 2020, the balance of member share will be paid to the estate of the deceased principal pensioner if there was no spouse. If there was a spouse, it will be paid to the estate of the deceased spouse. In this instance, no discretion is applied by the Board. This change was effected due to some updated interpretation rulings provided by the regulator.

What happens if you pass on and you are a living annuitant – is there still some benefits due by the NTRF? 

• The spouse, as nominated by the principal pensioner will stand in the shoes of the annuitant and manage the account as he/she deems fit if the annuitant predeceases the spouse.
• It is important that all annuitants nominate this spouse by means of completing an expression of wish form as if the spouse is not nominated, the balanced of the account will be distributed in terms of the section 37C of the Pension Funds Act which means that the Board of the Fund has the discretion to allocate the benefit in terms of the Act. It is of utmost importance that pensioners update their expression of wish form regularly to ensure the Fund has the most recent factual information on record. Note the Fund will use this expression of wish form to guide them in the allocation of this benefit.
• Once your spouse takes over your account on your death and he/she passes away, the balance in the Living Annuity Capital Account will be distributed as stipulated on the completed expression of wish form on file and not in terms of section 37C of the Pension Funds Act. If no nomination is made, the benefit will be paid to the estate.
• Please find the link to the expression of wish form to be updated and completed here