Rule 7

Disability Benefit

Protection against the unexpected. Comprehensive coverage for Permanent Total Disability.

Benefit Definition

Should a member be declared permanently disabled as defined under Rule 7, they will receive a lump sum benefit to replace lost future earnings.

Two-Pot Impact: The Retirement Pot remains inaccessible until normal retirement age, even in the event of disability.
New Risk Rates Effective Oct 2024
0.291% of salary
0.320% Previous

The Board successfully negotiated a reduction in risk premiums. This means a larger portion of your contribution now goes towards your retirement savings.

Why this matters to you

Understanding the value of your coverage.

Replacing Earnings

Your ability to earn is your biggest asset. This benefit provides a substantial capital injection to replace the future income you can no longer earn due to illness or injury.

Dignity & Independence

The payout ensures you can cover unforeseen costs like home modifications or care, protecting your dignity and reducing reliance on family or state grants.

Comprehensive Coverage

You get BOTH the insurance payout AND your full Fund Credit. This maximizes the financial resources available to you during a critical life change.

Benefit Calculation

Insured Multiple 1x - 4x Annual Salary
Fund Credit Total Savings + Interest
Note: This benefit ceases once you reach normal retirement age.

Required Documentation

  • Official Member Claim Form
  • Medical Reports (Specialist & GP)
  • Detailed Job Description
  • Sick Leave Records
Risk Administrator
H
Mufaro Group Risk Underwritten by Hollard

Summary of Advantages

Substantial Payout

Receiving up to 4 times your annual salary as a lump sum provides a significant financial buffer.

Tax Favorability

Taxed as a retirement benefit, meaning the first R550,000 is tax-free, ensuring the money goes to supporting you.

Cost Reduction

Reduced risk premiums (0.291%) mean more of your monthly contribution goes to savings, boosting long-term wealth.