Loading color scheme
Death is generally not something we like to think about, but it is important that you plan for it, especially if you have family who depend on you.
This section deals with the following issues:
Your dependants will receive a benefit equal to:
The Trustees will usually choose to pay benefits as a lump sum (subject to tax), but will take steps to safeguard the benefits allocated to any minor dependents.
The Trustees have complete discretion as to how the benefit payable by the Political Office-Bearers Pension Fund will be allocated to your dependents and nominees. This Trustee power is derived from Section 37C of the Pension Funds Act, which requires the Trustees to allocate any retirement fund benefit to those persons (usually your immediate family) that were most financially dependent on you.
The Trustees will look at your Nomination of Beneficiaries form to see who you nominated to receive some or all of your money. However, the law clearly states that it is up to the Trustees to decide who gets the money and how it will be shared out – they are not obliged to follow the Nomination Form, although this will provide them with useful guidance (as long as it is complete and up-to-date!).
The Trustees will do their best to make sure that they find all your dependents and that the money is shared out fairly among them all. This generally means “according to need” – by law, the Trustees must consider adult children (who were not financially dependent on you) as possible beneficiaries, along with anyone else you have nominated who was not financially dependent on you, but if the money is limited then it will usually be allocated where there is greatest need in the eyes of the Trustees.
It is therefore most important that you complete a Nomination of Beneficiaries form. This is to ensure that anyone whom you wish to benefit will have the opportunity of doing so, and also to help the Trustees by providing complete details of all your children and other family members, whether or not they are financially dependent on you. Forms are available from the Fund’s Administrator or from the HR Department of your legislature.
You can update your form as often as you need to, whenever there is a change in your personal circumstances, e.g. marriage, divorce, birth of a child, etc.
The benefits are subject to the detailed conditions set out in the Fund’s Group Life insurance policy which are complex and may change from time to time. The main restrictions are:
The tax treatment of the death-in-service benefit is covered in the section titled Taxation of Benefits.
The information in this guide does not constitute advice by either the Board of Trustees or its professional advisors. Members are encouraged to seek expert advice from a personal financial advisor before taking decisions regarding their benefits. The Fund will try to ensure that the material in this guide is up to date and accurate, but this cannot be guaranteed at all times.