Please ensure compliance with these guidelines before offering the Verso Umbrella Pension and Provident Retirement Funds to your client or recommending any benefit changes. Should there be any uncertainty about applicable conditions / benefits please discuss with the administrator.
- No defined benefit arrangements or underpins.
- No Hybrid fund arrangements.
A minimum membership of 10 members per participating employer applies.
3. MEMBERSHIP CATEGORIES
Four (4) membership categories are catered for at no additional charge. A category is defined as a group of employees that share the same retirement age, contribution rates, fund benefits and risk benefits.
4. MEMBERSHIP ELIGIBILITY
- No paid-up or deferred members.
- No pensioners or pensioner liabilities.
- No risk-only members.
- Separate risk and pensionable salaries are permitted.
- Contributions must be paid strictly in terms of Section 13A of the Act. Contravention will be dealt with as prescribed under Section 13A, i.e. interest will be charged on late payments.
- Expenses may be inclusive or exclusive.
- Minimum 2% net towards retirement.
Additional Voluntary Contributions
- Post tax basis.
- Lump sum post tax basis allowed.
6. RISK BENEFITS
Three (3) risk benefit policies are catered for at no additional charge.
Death in Service
- Reassured or Freestanding. (If Freestanding, only if cost is included in employer contribution rate.)
- Fixed multiple or age-related death benefits can be accommodated.
- Flexible Risk.
- Capital disability, monthly income and Total Temporary Disability (TTD) benefits can be accommodated.
- Employer waiver of contributions must be included in the income disability product and be equal to the employer contribution rate. If not, confirmation from the employer will be required that full contributions will be paid.
Other Risk Benefits
- Standard funeral and other multiple-of-salary benefits on a freestanding unapproved basis can be accommodated.
- There may not be an outstanding Section 14 transfer into the Transferor Fund in respect of members transferring into the Verso Umbrella Pension and Provident Funds.
- The Verso Umbrella Pension and Provident Funds will not accept advances from the transferring fund for the payment of benefits. The Section 14 process must be accelerated by the Transferor Fund’s consultant so as to minimize potential delays. Where claims arise, the Transferor Fund must pay their benefit in terms of their rules. The Verso Umbrella Retirement Pension and Provident Funds will pay out, in turn, their portion. Any difference will be paid once the Section 14 has been approved.
- Unclaimed Benefits must be transferred to an Unclaimed Benefits fund pre-transfer, where possible.
- Any costs associated with the tracing or dealing with unclaimed benefits pre-Section 14, will be for the Participating Employer’s account.
- The Verso Umbrella Retirement Pension and Provident Funds will not be responsible for any divorce orders, unless these have been specified in the Section 14 application and the details thereof provided to the administrator.
- Surplus scheme should be completed pre–transfer.
- The Administration, Consulting, Fund Cost and Risk Benefit Fees must be expressed as a percentage of salary and deducted monthly, where inclusively costed, from the Employer contribution.
- Funeral Fees can be accepted on a Rand amount per member.
- Seven (7) investment portfolios, as approved by the Verso Umbrella Pension and Provident Funds Trustees, may be offered. Please refer to the ‘Product Guide’ for the available options.
- Member Investment Choice can be accommodated.
10. HOUSING LOANS
A guaranteed non mortgage home loan facility can be negotiated with First National Bank, the Fund’s approved provider.
Provision is only made for a ‘Fund Costs’ Reserve Account at fund level.
In the event of participation being terminated within 12 months of joining, the balance of the 12 months administration fee may be payable in order to recoup installation costs incurred in setting up the scheme.