Benefits
Fund Credit
Your Fund Credit is equal to:
- your own contributions, plus
- the portion of the employer contribution allocated to your retirement benefit, plus
- any amount that you have transferred from a previous fund, plus
- net investment return
From 1 September 2024, your Fund credit is being split into three components:
- Vested component (Accumulated fund credit up until 30 August 2025)
- Allowed to take up to 100% in cash at resignation/dismissal.
- Savings component (Seeding capital plus 1/3 contributions from 1 September 2024)
- Allowed to make one withdrawal per tax year
- Minimum withdrawal: R2 000
- Maximum withdrawal: 100%
- Before retirement withdrawals are taxed at the member’s marginal income tax rate.
- Retirement component (2/3 contributions from 1 September 2024)
- Benefit must be preserved until retirement age (minimum 55)
- No cash available, even at retirement
- Full benefit to be annuitized at retirement
Retirement Benefit
Normal Retirement
Normal retirement age is 65 years. Your benefit at retirement is equal to your fund credit and is not directly connected to your salary or your years of service at retirement. At retirement, a maximum of one third of your vested component and 100% of your savings component may be commuted for a lump sum and may be taken in cash, subject to prevailing tax legislation – currently, a maximum amount of R550,000 is exempt from tax. The remainder of your vested component and 100% of your retirement component must be used to purchase a pension.
Early Retirement
A member may, at any time from age 55 retire. Members will be entitled to the same benefits as in the case of normal retirement. No reduction clauses will apply.
Death Benefit
Should you pass away while a member of the Fund, your dependants / nominees will receive your fund credit, plus an insured amount which is a multiple of salary. These multiples of pensionable salary change annually according to changes in risk insurance premiums and benefits.
The latest multiples as from 1 April 2025 to 1 April 2026 are as follows:
20-34 Years
35-39 Years
40-44 Years
45-49 Years
50-54 Years
55-65 Years
Disability Benefit
After sick leave of three months, 100% of your salary will be paid for a maximum of nine
months in total. After that, in the case of total and permanent disability, you will receive a
lump sum, calculated as explained below.
Lump sum
After 12 months’ temporary disability, you will receive your fund credit, plus an insured
amount which is a multiple of pensionable salary.
Note: Only one third of this benefit may be taken in cash. The balance must be used to
purchase a pension from an insurer, regardless of your age.
These multiples of pensionable salary change annually according to changes in risk insurance premiums and benefits.
The latest multiples as from 1 April 2025 to a April 2026 are as follows:
20-44 Years
45-49 Years
50-54 Years
55-65 Years
Funeral Benefit
The purpose of funeral benefits is to help pay the funeral costs when a member passes away. Funeral benefits are also paid out on the death of the spouse or eligible child of a member.
A maximum number of 1 (one) spouse, 5 (five) dependent children and 2 (two) stillbirths in respect of a member shall enjoy cover in terms of the scheme. The cover will not extend to extended family members.
| Immediate family benefits | |
| Lives covered | Benefit Amount |
| Member | R 40,000 |
| Spouse | R 40,000 |
| Child age 14 to 21 years | R 40,000 |
| Child age 6 to 13 years | R 20,000 |
| Child age 1 to 5 years | R 10,000 |
| Child age 0 to 11 months | R 5,000 |
| Stillborn | R 5,000 |
The cost of the funeral benefit is R65.10 per month and will be deducted from the member’s salary.
Members have the option to continue with the individual policy after leaving the ARC at resignation, dismissal or retirement as long as the application is completed within 1 month of leaving the ARC’s employment. A member should be part of the scheme for at least 6 months to have the option of conversion.
Pension Backed Housing Loan
A Pension Backed Housing Loan Facility is a loan guaranteed by a member’s accumulated pension fund credit. Therefore the Pension Fund is merely surety for the loan and not a withdrawal.
This Facility can be used for the following purposes:
- Buying vacant land
- Buying a fixed property
- Renovating or making alterations to an existing fixed property (this property must be in your name or your spouse’s name)
- Covering any housing-related shortfalls, like a deposit, transfer costs or registration fees
| Minimum Loan Amount | R50 000 |
| Maximum Loan Amount | Up to 60% of the members’ withdrawal benefit, depending on affordability |
| Interest Rate Tiers |
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| Repayment Method | Payroll deduction (not per debit order) |
| Fees |
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Maximum Amount Members Qualify for:
-
- 60% of Pension Fund Credit
Example: If a member accumulated R1 000 000 in the Pension Fund their maximum loan amount that they qualify for is R600 000 - Minimum Loan Amount of R50 000
Minimum pension benefit required is R83 333.
- 60% of Pension Fund Credit