Updated: Jun 27, 2020
Employee benefits are a very important part of every employee’s remuneration package.
This basket of benefits (consisting of Pension Funds, Provident Funds, Group Risk Benefits and or Medical Schemes) is often a popular topic of discussion among colleagues and friends.
However, the discussion seldom gets around to:
What happens when I die?
Will my loved ones be taken care of?
Will my last wishes regarding who gets what be honoured?
Will my loved ones enjoy the benefits I have worked so hard to earn?
When joining an employee benefit scheme one also receives a Beneficiary Nomination Form. This is one of the most important attachments to your application.
It consists of clear and precise guidelines to the Trustees of the Pension/Provident Fund explaining how your fund money is to be distributed amongst dependents. It is, however, very important to emphasise that this document will not be the final determining factor regarding who will be receiving what portion of your Pension/Provident Fund values.
Remember, your beneficiary nomination is not one and the same thing as your last will and testament. According to legislation the trustees are required to do the apportionment in accordance with the Pension Funds Act (Section 37Cc).