In terms of the Income Tax Act (Act 58 of 1962 as amended, it is a condition of employment that all new employees who enter the services of Davis Langdon Farrow Laing or any of its participating associated companies on or after 1 April 1971 and:
- Who are older than 18 years of age but younger than 55 years,
- Who are permanent full time employees, and
- Who are not members of another employer subsidised pension or provident fund,
must join the Davis Langdon Farrow Laing Pension Fund which, together with the Employer insurance benefit scheme, provides benefits in respect of the following eventualities: Retirement, Death, Disability (temporary or permanent), Resignation or Retrenchment.
All new employees with effect from 1 May 2005 are required to join the Defined Contribution category of the Fund. The membership will cease only on the earliest of death or disability, withdrawal from the employer before retirement or the dissolution of the Fund.
Members will contribute 5.75% of your pensionable salary, which you will receive a tax relief on. The Employer will contribute another 5.75 %.
Your Benefit in the Fund is known as your Equitable Share which comprises the current value of:
- Your transfer value from a previous fund your belonged to (if applicable), plus
- Your own contribution since becoming a member of the Fund, plus
- Your voluntary contribution, if applicable, plus
- The Employer's net contributions, plus
- Investment returns earned by the Fund, less
- Administrative costs
You may retire at any stage on or after your 55th birthday, but the normal retirement age is at the end of the month in which you turn 65 years. You may also, with your employer's consent , remain working after your normal retirement age. You have a choice to receive up to a third of your total benefit in cash. This benefit will be taxed OR utilise to purchase a pension from a registered insurer.
Death before retirement
A lump sum equal to twice your annual pensionable salary will be paid from the Group Life Assurance Scheme in accordance with your wishes as summarized in your nomination Form, plus your equitable share.
Disability Benefits
A lump sum equal to twice your annual pensionable salary will be paid from the disability Insurance Scheme.
Your membership in the fund will end and you will have no further claim against the Fund.
Resignation
In the case of a voluntary resignation, your equitable share is payable. A lump sum: R1800 will be tax free while the remaining benefit will be taxed at your ‘average’ tax rate OR it can be transferred to another pension fund (including a preservation fund) or retirement annuity tax-free.
