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Moriting Defined Contribution Provident Fund

Definition

  • Provides lump sum benefits on retirement based on net contributions plus net investment returns, as well as benefits on members withdrawing from service, death and/or disability. 

Group size

  • From 20 employees to relatively large employee groups. 

Retirement

  • The accumulated credit is payable to employees on retirement. The accumulated credit consists of net employee contributions, plus net employer contributions, plus net investment returns accumulated during the period of membership.
  • Retirement age depends on the specific fund design and could range between 55 and 70.
  • Members can choose to retire on the normal retirement date, or retire earlier or later, with the consent of their employers. 

Withdrawal

  • On exit, the members' accumulated credit becomes payable.
  • Withdrawal benefits can be taken in cash or transferred to another fund. 

Death

  • On death, members' dependants receive their accumulated credit, which is distributed according to the members' beneficiary nominations.
  • Based on the fund design, lump sum benefits that are worked out as multiples of salary and/or pension benefits may be payable to spouses and children, in addition to the accumulated credit.

Disability

  • Depending on the fund design, membership could either cease on disablement or continue until retirement.
  • On cessation of membership due to disablement, the accumulated credit is payable. In addition, depending on the fund design, a lump sum may be payable.
  • Should membership continue, a disability income benefit replaces the employee's salary.

Employee contributions

  • Based on the fund design, employees may or may not contribute to the fund. No maximum contribution is prescribed. Contributions are, however, not tax deductible.

Employer contributions

  • Employers' contributions are dependent on the design of the fund and are typically equal to or greater than the employees' contributions.
  • A minimum contribution equal to the total of administration and insured benefits costs is required. A maximum does apply in terms of tax deductibility of contributions.
  • Contributions are expressed as a percentage of members' salaries.

Deemed contributions

  • Where employees do not contribute, employers can make contributions on behalf of members.

Additional contributions

  • Employers may make supplementary employer contributions.
  • Employers may make recurring or lump sum additional contributions to purchase additional benefits. These contributions are tax deductible up to the maximum permitted by the law.

Inter fund transfers

  • Members may transfer accumulated benefits payable to or from other provident funds to the Moriting Defined Contribution Provident Fund.

Investments

  • Clients may choose to invest their money in a Trustee-approved basket of investment vehicles, or choose to belong to investment vehicles of their own choice. The latter is subject to request, the size of the fund and negotiated Service Level Agreements.

Administration

  • Moriting offers a highly automated, yet simplified, administration system that minimises employers' administrative involvement in the day-to-day running of their provident fund.

Tax

  • Employers' contributions are tax-deductible subject to the legal maximum.
  • Benefits are taxed in terms of current legislation.

Benefit statements

  • Annual benefit statements are provided to all members. Members receive confirmation of membership on entry to the fund.