Below is a handy summary of the benefits offered by the industry's Bargaining Council.
Eligibility:
Employee means a person who –
(a) is in the part-time or full-time employment of the employer;
(b) has attained the age of 15 years; and
(c) is under the age of 60 years for all new employees to the industry, otherwise the age of 64 years for current employees moving between jobs.
Membership:
In terms of the new Bargaining Council Agreement as published in the Government Gazette, the Fund is now compulsory for every Employee in the Hairdressing and Cosmetology Services industry and now includes both Party and Non-Party Salons.
Member Contributions:
Kwazulu-Natal: 6,50% (tax deductible by employee)
All other regions: 6,00% (tax deductible by employee)
Employer Contributions:
Kwazulu-Natal: 6,50% (all costs included)
All other regions: 6,00% (all costs included)
Resignation/ Retrenchment/ Dismissal benefits on leaving the Industry:
Full Fund Credit (gross member contributions plus net employer contributions plus actual investment return.
Retirement Benefit:
On retirement the employee becomes entitled to an annuity of such amount that can be purchased from a Registered Insurer with his/her full Retirement Savings Account (Fund Credit). The member may elect to commute up to one-third for a cash lump sum. In terms of the Income Tax Act, if the member share is less than R247 500, the full amount can be paid as a cash lump sum.
Normal Retirement Age: 65 (all risk benefits cease at the age of 65 years)
Early Retirement: From age 55
Maximum Retirement Age: Age 70
Death Benefit before the age of 17 years:
Fund Credit (payable as cash lump sum, subject to section 37C of Pension Fund Act).
Death Benefit from the age of 17 years:
3 x Annual Salary (insured amount) plus Fund Credit (payable as cash lump sum, subject to section 37C of Pension Fund Act).
Disability Benefit before the age of 17 years:
Fund Credit (payable as 1/3 cash, balance as monthly pension if total benefit is more than R247 500).
Disability Benefit from the age of 17 years:
3 x Annual Salary (insured amount) plus Fund Credit after 6 months waiting period if total and permanently incapable of following his/her own or similar occupation (payable as 1/3 cash, balance as monthly pension if total benefit is more than R247 500). Benefit will reduce by 20% per annum from age 60.
Tax on Resignation/Dismissal Benefit:
First R25 000 is tax free, the remaining benefit is taxed according to a sliding scale.
Tax at Retirement/Retrenchment:
The first R500 000 is tax free and the remaining benefit is taxed according to a sliding scale. Remember, you have only one R500 000 tax free amount that will apply to all your cash payments, including 1/3 cash payments from individual Retirement Annuities.
Funeral Benefits:
Main member/Spouse - R10 000
Child 14 to 21 years - R10 000
Child 6 to 13 years - R5 000
Child 1 to 5 years - R2 500
Stillborn to 11 months - R2 500
Critical Illness Benefit:
Provides a lump sum of up to R50 000 payable to an insured after 14 days survival period who is diagnosed with any of the following:
Heart Attack
Major Burns
Coronary artery bypass graft
Total blindness
Stroke
Coma
Cancer
Multiple Sclerosis
Kidney failure
Alzheimer`s Disease
Major Organ transplant
Motor Neuron Disease
Loss of limbs
Parkinson’s Disease
Accidental HIV
Benign Brain Tumor
Death Benefit:
Tell us of the death within 9 months from the date of death. Send us evidence and other documents within 3 months of telling us of the death. If the Fund is not notified within the prescribed periods, the insured amount will not be paid to dependents and/or nominees.
Disability Benefit:
Tell us of the disability within 3 months from the date of disability (last day actively employed). Send us medical evidence and other documents within 3 months of telling us of the disability. If the Fund is not notified within the prescribed periods, the insured amount will not be paid to members who become disabled.
Funeral Benefits:
Funeral Claims must be notified within 6 months of date of death and claim forms submitted within 3 months of notification.
Critical Illness Benefit:
Claims must be notified within 3 months of date diagnosed and claim forms submitted within 3 months of notification.
NB!!!!!!!!!
No claim will be paid if any contributions are in arrears. Contributions to continue until assessment of claims have been finalised.
Policy conditions:
The multiple of salary death benefit is subject to all the limitations, exclusions, terms and conditions that are applicable to the death insurance that the Fund has affected with the Insurer in regard to the benefit.
Exclusions and Pre-existing conditions:
Certain exclusions and pre-existing condition clauses will apply on disability benefits as per the policy conditions.
Physical Address:
Unit B3 The Willows Office Park (Behind Toyota Lynnwood)
Farm Road
(Cnr Simon Vermooten and Lynnwood Road)
Die Wilgers, Pretoria
Postal Address:
P O Box 72117, Lynnwood Ridge, Pretoria, 0040
Tel: 0861 114 662
Fax: 0865 512 587
Email: hbsipension@prevue.co.za
