1. INTRODUCTION
In addition to saving for retirement, the University provides comprehensive Risk Benefits for all active UWC Sanlam Umbrella Provident Fund members and their families. These benefits are applicable from the date of joining the Fund and offer significant financial protection in case of death, disability, spouses and funeral benefits.
These group benefits are provided under group insurance policies entered into by the University and the insurer. Members do not hold individual policies.
Each year, the University, through the Sanlam Umbrella Provident Fund (SUF) Joint Management Forum, approaches multiple registered insurers to source competitive quotations and ensure the best premium rates.
Momentum is currently the appointed insurer for all Risk Benefit schemes.
2. STRUCTURE OF RISK BENEFITS
The UWC Sanlam Umbrella Fund offers a combination of Approved and Unapproved benefits:
2.1 Approved Schemes
• Governed by the Income Tax Act and included within the Retirement Fund.
• Premiums are paid from pre-tax salary (not taxed).
• Benefits are taxed upon payout to beneficiaries.
• Trustees allocate the benefits according to Section 37C of the Pension Funds Act.
2.2 Unapproved Schemes
• Not approved under the Income Tax Act and external to the Fund.
• Premiums are taxed in the member’s hands as a fringe benefit.
• Benefits are tax-free upon payment.
• Paid directly to nominated beneficiaries. If no nomination, the benefit is paid
to the estate.
• Nomination forms must be completed and updated regularly.
3. DEATH IN SERVICE BENEFIT (Before Age 65)
If a member dies before the normal retirement age of 65, the following benefits apply:
• Approved Death Benefit: 4 x Annual Pensionable Salary + Member Share in the Fund.
• Unapproved Death Benefit: 3 x Annual Pensionable Salary payable to dependents/nominees.
For the Approved Death Benefit, the Sanlam Umbrella Provident Fund (SUF) Board of Trustees will distribute these benefits, taking into account your latest Nomination of Beneficiary Form and family circumstances at the time of death.
For the Unapproved Death Benefit, your nominated beneficiary will receive the benefit payable.
Important: Always update your beneficiary form when your personal situation changes (e.g., marriage, divorce, birth of a child). If not completed, the benefit is payable to the estate.
Death Benefit Continuation While Disabled: If you become disabled and are receiving a monthly disability benefit, your lump sum death benefit remains active until the age of 65.
Cessation of Cover: Death cover ends upon resignation or retirement.
• UWC Employees: 3 x Annual Pensionable Salary (APS)
• Disability Income Claimants:
o Received lump sum: 2 x Annual Pensionable Salary
o No lump sum: 3 x Annual Pensionable Salary
4. DISABILITY BENEFITS BEFORE AGE 65 (IN SERVICE)
4.1 Unapproved Lump Sum Disability Benefit [Separate Scheme]
• Definition of disability: The total, permanent and continuous inability to work in any occupation to which the member is suited, or the permanent impairment in their mental or physical condition to the extent that they are unable to attend to their normal bodily functions.
• Payment is made after a 6-month waiting period.
• Benefit Payable:
o UWC Employees: 2 x Annual Pensionable Salary (max R10 million)
4.2 Approved Lump Sum Disability Benefit
• Definition of disability: The total, permanent and continuous inability to work in any occupation to which the member is suited, or the permanent impairment in their mental or physical condition to the extent that they are unable to attend to their normal bodily functions.
• Payment is made after a 6-month waiting period.
• Benefit Payable:
o UWC Employees: 1 x Annual Pensionable Salary ((max R10 million)
• Reduces by 1/60th per month during the 5 years before retirement age.
5. INCOME DISABILITY BENEFIT
• Definition of Disability:
o During the initial period: Inability to perform their job with their employer or any other reasonably suitable job that the employer can offer them and is available (as assessed by the insurer).
o After the initial period: own occupation or any reasonable, suitable alternative occupation in the open market (as assessed by the insurer).
• Initial period: 24 months
• 75% of pensionable salary (monthly income) (max R220,000/month). Subject to applicable deductions (UIF not deducted).
• Payments start after a 3-month waiting period.
• Members continue to contribute 7.5% to the Fund.
• Insurer pays a 20% contribution waiver (max R55,000/month) to cover Fund
contributions, risk premiums, and partial medical aid, subject to the applicable maximums.
• Member responsible for the medical aid shortfall.
• There is a Rehabilitation benefit which may be payable if the insurer determines that a rehabilitation program will assist the member in recovering from their condition and returning to productive work. To qualify, specific conditions must be met. The maximum amount payable under this benefit is 24 times the monthly disability benefit.
• Rehabilitation bonus: A Rehabilitation bonus of three times the member’s last disability income benefit is payable if a member completes a rehabilitation programme and returns to productive work. To qualify, the member needs to have been back at work for a period of at least six continuous months during the 12 months since the disability income benefit stopped.
• Survivor benefit: If the claimant passes away while receiving the disability benefit, then the monthly disability benefit will continue to be paid for 3 months after the claimant’s death.
• Ends on: Recovery, retirement, death, or resignation.
6. SPOUSE’S DEATH and DISABILITY BENEFIT
If a member’s spouse passes away or becomes permanently disabled:
• A tax-free lump sum of 1 x Annual Pensionable Salary is paid to the member.
• Maximum per event: R2.5 million
• Up to three claims may be submitted for spouses during the member’s lifetime.
7. FUNERAL BENEFITS
• Benefit paid within 48 hours upon receipt of claim and death certificate.
Eligible Family Members and Benefits:
• Member: R30,000
• Spouse: R30,000 (up to 3 claims per member)
• Child (14+ years): R30,000
• Child (6–13 years): R15,000
• Child (1–5 years): R7,500
• Stillborn or under 1 year: R3,750
Definitions:
• Spouse: Legally married, customary, religious or permanent partnerships (6+ months)
• Children: Biological, legally adopted, or stillborn children
• Age Limits:
o Normal cover: up to 20 years old
o Full-time student: up to 25 years
o No age limit for mentally/physically disabled dependent children
• Important: Always update your beneficiary form when your personal situation changes (e.g., marriage, divorce, birth of a child). If not completed, the benefit is payable to the estate.
8. GENERAL CLAIMS PROCESS
1. Death Claims Process:
o Notify Human Resources
o Submit:
a. Death / Funeral Claim Form
b. Beneficiary Nomination Form
c. Certified ID
d. Death certificate
e. Certified Marriage Certificate
f. Certified Banking Details of the Beneficiaries.
g. Notification of Death Form (DHA-1663)
2. Disability Claims Process:
1. Notify Human Resources if an employee has been booked off for longer than 10 days, has been in an accident, or there is a possibility that the employee will be off work for longer than 3 months.
2. The insurer requires notification of a claim and submission of claims documentation within 3 months of the day that the employee was last
at work. HR will notify the insurer.
3. Disability claims forms include:
a. Employer declaration – to be completed and signed by the line manager
b. Employee declaration – to be completed and signed by the employee claiming benefits
c. Confidential medical report – to be completed by the employee’s treating specialist doctor
d. Supporting medical information, including but not limited to: medical certificates, diagnostic test results (like scans, x-ray reports, blood test results, etc.), rehabilitation reports and any other specialist medical reports.
e. Supporting employment information: leave records, job description and the employees’ pay slip for the month they were last at work doing their job.
f. Notice of Disability Claim Form – to officially inform the insurance company, employer or other relevant entities that an individual is experiencing a disability and intends to file for a claim for benefits.
g. Consent Form (Momentum) – to request permission from the employee to consent to a formal investigation into the claim submitted.
9. CONTACT AND INFORMATION
• For claim guidance: UWC Human Resources Department or alternatively log a request on the HR Helpdesk platform: (https://hrhelpdesk.uwc.ac.za/CAisd/pdmweb.exe)
• It is advisable to consult an independent, accredited financial advisor for holistic financial planning.
Disclaimer: This summary has been prepared to highlight the critical features of the policy and is provided for general information only. The provision of this summary does not override the terms and conditions of the policy wording, which will always be the sole authority for interpretation and application.
DEPARTMENT