| ENTITLEMENT TO DEATH BENEFITS PAYABLE BY PENSION FUNDS |
Q: 1. The Pensions Funds Act 1956 ("Act') regulates pension funds in South Africa. 2. The object of the Act is to provide support for the dependants of a deceased member upon his death. The support is provided by means of lump sum payments and/or annuities. 3. A pension fund established in terms of the Act has separate juristic personality, and must comply with prescribed requirements including registration, etc. 4. A contribution to a pension fund is deducted at source from the employee’s salary and paid over to the fund by the employer. The employer also makes defined contributions to the fund. 5. When the employee dies, the fund in accordance with its rules but subject to the Act pays death benefits to the dependants of the deceased, normally the surviving spouse and minor children, who were dependent on the deceased for maintenance in his lifetime. |
