CRF members enjoy flexible cost-efficient benefits, by choosing a risk category best suited to their individual financial needs.
The risk category you select, determines the amount of risk cover you have in the unfortunate event of death, disability or if you are diagnosed with a dread disease. Your risk category also determines how much of your monthly contributions are used to purchase your risk cover and how much goes towards your retirement savings.
To help you choose, or when reviewing your existing risk cover with the Fund, the table below reflects the amount you pay for risk cover and how much you save towards retirement for each risk benefit category in the Fund:
| Risk Category (before expenses of running the Fund) |
Check to see if you fit this profile | What happens if you die? | What happens If you become disabled? | Are you covered for dread disease? |
|---|---|---|---|---|
| A: This category costs 4.030%. You save between 21.47% and 22.97% towards retirement. Councillors save 10.97%. |
I have some insurance of my own, so I only need some death, disability and dread disease cover | Your dependants will receive a lump sum of 4.35 x your annual pensionable salary plus your member share plus your funeral benefit | You will receive a lump sum of 4.35 x your annual pensionable salary plus your member share. This benefit ceases at 65. | Lump sum of 75% of Annual pensionable salary |
| B: This category costs 5.076%. You save between 20.424% and 21.924% towards retirement. Councillors save 9.924%. |
I am a young member with a family and have little insurance cover. I definitely need death, disability and dread disease cover | Your dependants will receive a lump sum of 7.35 x your annual pensionable salary plus your member share plus your funeral benefit | You will receive a lump sum of 4.70 x your annual pensionable salary plus your member share. This benefit ceases at 65. | Lump sum of 75% of Annual pensionable salary |
| C: This category costs 2.184% You save between 23.316% and 24.816% towards retirement Councillors save 12.816% |
I have sufficient disability cover, so I only need death and dread disease cover | Your dependants will receive a lump sum of 4.70 x your annual pensionable salary plus your member share plus your funeral benefit | No insured disability benefit. Only your member share will be paid to you | Lump sum of 75% of Annual pensionable salary |
| D: This category costs 0% You save between 25.5% and 27% towards retirement Councillors save 15% |
I am older than 50 years or a councillor. I have my own insurance, which my broker confirmed is sufficient. All my contributions are to be placed in to my retirement savings account. | Category D does not offer any risk benefits other than funeral cover. Your dependants will receive a lump sum consisting of your total member share plus your funeral benefit | Your member share will be paid to you in form on a lump sum. | No Cover |
| G: This category costs 0.6% You save between 24.9% and 26.4% towards retirement Councillors save 14.4% |
I have my own insurance outside the Fund, but I would like the minimum death cover offered by the Fund while saving the rest towards my retirement | Your dependants will receive a lump sum consisting of 1 x your annual pensionable salary plus your total member share plus your funeral benefit. | You will be paid your total member share in a lump sum. | No Cover |
Members who joined the Fund prior to 1 July 2023 and elected Risk Categories E or F will have the following cover:
| Risk Category (before expenses of running the Fund) |
Check to see if you fit this profile | What happens if you die? | What happens If you become disabled? | Are you covered for dread disease? |
|---|---|---|---|---|
| E: This category costs 3.45% You save between 22.05% and 23.55% towards retirement Councillors save 11.55% |
I need death and dread disease cover and as well as a monthly income disability benefit | Your dependants will receive a lump sum of 4.25 x your annual pensionable salary plus your member share plus your funeral benefit | You will receive a monthly income disability benefit of 75% of your annual pensionable salary, subject to a maximum of R200 000 per month. In the case of disability, you will continue to contribute 9% or 7.5% towards retirement funding until you reach 65. Remember that while you receive the monthly income disability benefit, you remain covered for the death benefit until you turn 65. Please note that the insurer can stop the monthly benefit if you no longer meet the requirements of the definition of disability. | Lump sum of 75% of Annual pensionable salary |
| F: This category costs 3% You save between 22.5% and 24% towards retirement Councillors save 12% |
I am between the ages of 65 and 75 years and have a need for death cover | Your dependants will receive a lump sum of 4.25 x your annual pensionable salary plus your member share plus your funeral benefit | There is no insured disability benefit. This means that only your member share will be payable to you | No Cover |
Important to remember:
- Members who joined the Fund before 1 July 2023, will have the option to select Risk Category F once they reach the age of 65, if they were already on a risk category option that made provision for death cover, and that their condition of service allows them to continue working after they have reached the age of 65.
- Furthermore, members who retire within the Fund by investing in the In-Fund Pension or In-Fund Living Annuity options and were not in Risk Category D prior to their retirement will have the option to select Category F and make provision for death cover.
- It is vital to remember that with these changes certain policy terms and conditions will apply. The Fund may request additional medical information or a waiting period before the member or pensioner’s new risk category can be implemented.
Make a note of this!
As your need for risk cover changes, you will have the option to switch between the available risk categories at the following times:
- Annually before 30 April for implementation 1 July. The completed form needs to reach the Fund before 30 April together with a health assessment form available on the Fund’s website.
- Please take note that their choice of new risk category will be effective subject to the outcome of the health assessment questionnaire:
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- If the member transfers to a risk category that provides lower risk benefits, they will be accepted on the newly elected risk-benefit category effective 1 July 2023.
- Should the member elect to transfer to a category that provides them with more cover than their current risk category, the following will be applicable depending on the health assessment questionnaire:
- With a no-risk and low-risk assessment outcome, the change in risk category will be accepted and effective 1 July 2023.
- With a medium-risk health assessment outcome, the transfer to the new risk benefit category will be accepted on a conditional basis and a waiting period of 12 months would apply before the new risk benefit category cover will become effective.
- In the event of a high-risk health assessment outcome, the transfer to the new risk benefit category would be accepted on a conditional basis. A waiting period of 12 months will be implemented before the new risk category will become effective and the risk premium will increase by 20% from the date of the conditional acceptance of the change in risk category benefit.
- Should the member claim for a health condition unrelated to any conditions identified in their health assessment questionnaire within 12 months of requesting to transfer to the new risk benefit category, the benefits in terms of the newly elected risk benefit category would become payable to the member.
- Please note that an additional health assessment in the form of a prognosis report from the member’s treating doctor, will be required in the 9th month of the 12- month waiting period. If it is found that the member’s health condition has deteriorated since the previous assessment the Fund has the right to decline the application to transfer to the higher-risk benefit category and will be reverted to their previous risk-benefit category.
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You will also be allowed to change your risk category in the event of the following life events:
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| Marriage | Divorce | Birth or death of a child |
| Death of a spouse | When you obtain the ages of 40, 50, 60 years | When a child reaches majority age |
| When your employment contract changes |
- Proof of an event, e.g. a certified copy of a birth certificate, must be provided together with the risk option change form. Please submit your request to change risk category, within three months of the event
- Certain conditions apply, in terms of the policy conditions, if the risk cover is increased. The Fund may request additional medical information
Dread Disease Cover – Important information regarding your dread disease cover.
The dread disease cover also referred to as critical Illness cover is a financial aid benefit available to members of the CRF that have elected Risk Category A, B, C or E. This benefit enables you to pay for the unforeseen expenses you might be faced with if diagnosed with an insured dread disease.
Below is a guide of the illnesses that are covered including new illnesses not covered previously:
| Insured Dread Disease | This includes | This excludes |
|---|---|---|
| Stroke | The death of brain tissue due to inadequate blood supply or haemorrhage within the skull, confirmed by neuro-imaging investigation and appropriate clinical findings by a specialist neurologist. Symptoms and signs as well as imaging must confirm a new stroke. The condition will be assessed by a full neurological examination by a specialist neurologist no earlier than 3 months from date of occurrence It shall also include permanent impairment as measured by: • The inability to perform 3 or more basic activities of daily living or • A whole person impairment of greater than 35% |
Does not include transient ischaemic attacks, vascular disease affecting the eye or optic nerve, migraine and vestibular disorders or traumatic injury to brain tissue or blood vessels |
| Heart attack (Myocardial infarction with severe impairment) | The death of heart muscle due to inadequate blood supply as evidenced by all of the following three criteria: • Compatible clinical symptoms • Characteristic ECG changes • Raised cardiac markers (as defined in the policy) Only a Heart Attack with severe impairment in function (SCIDEP Severity Level A) in one or more of the functional criteria as measured 6 weeks post infarction is covered. |
Other acute coronary syndromes, including but not limited to angina |
| Organ transplant | The actual undergoing of a transplant. Confirmation that the eligible member has been placed on an official transplant list at a registered transplant facility within the borders of the Republic of South Africa. List: • Heart transplant Lung transplant • Heart and lung transplant • Liver transplant • Pancreas transplant • Renal transplant • Stem cell transplant |
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| Chronic renal failure | Chronic irreversible end-stage failure, as a result of which regular peritoneal or hemodialysis is required on a long-term basis • The member must survive the renal failure for a period of 31 consecutive days during which no Life Support is used • The diagnosis must be confirmed by a nephrologist |
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| Paralysis (Paraplegia) | The total and permanent loss of use of both legs due to disease or injury of the spinal cord or brain as confirmed by a neurologist or neurosurgeon | |
| Major burns | Full-thickness third degree burns covering at least 20% of the body’s surface area and requiring extensive skin-grafting | |
| Deep coma | A state of unconsciousness that has lasted for a continuous period of 96 hours and: • Involves continuous unresponsiveness to external stimuli or internal needs; and • Requires the use of Life Support systems as a ventilators or intravenous nourishment; and • Is represented by a score of 8 or less measured in theirs of the Glasgow Coma Scale. The person must survive the date of regaining consciousness for a period of 31 consecutive days during which no Life Support is used. |
A coma which is artificially induced for purpose of ventilation |
| Coronary artery bypass surgery | Undergoing of surgery to correct the narrowing or blockage of one or more coronary arteries my means of a by-pass graft. | • Insertion of stent • Other procedures on the coronary vessels such as percutaneous transluminal angioplasty • Laser therapy |
| Blindness | Blindness means the total, permanent and irreversible visual acuity loss in both eyes with a Snellen equivalent of 6/30 after correction, or worse. • Loss of peripheral vision of more than 20 degrees in both eyes • A registered ophthalmologist must certify this |
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| Cancer | Any malignant tumour positively diagnosed with histological confirmation and characterised by growth of malignant cells and invasion of tissue. This includes leukaemia, lymphoma and sarcoma. The classifications are based on the latest edition of the American Joint Committee for Cancer (AJCC) Cancer Staging Manual. Pathological staging overrides the clinical staging | • Tumours which are histologically described as benign, pre-malignant potential • Any tumour classified as carcinoma in-situ (Tis) or (Ta) by the latest edition of the AJCC Cancer Staging Manual • All non-melanoma skin cancers • All myelodysplastic syndromes and myeloproliferative neoplasms • Primary cutaneous lymphoma and dermatofibrosarcoma which are confined to the skin • All cancers only identified from tumour cells |
Cancer benefit payouts are subject to severity levels as described below:
| Severity Level | Percentage of Cover |
|---|---|
| Level A | 100% of the 0.75 x your annual pensionable salary/td> |
| Level B | 75% of the 0.75 x your annual pensionable salary |
The below table indicates when a cancer is classified as a severity level of A or B:
| Severity Level | All Cancers | Prostate | Leukemia and Lymphoma | Brain Tumours |
|---|---|---|---|---|
| A | Stage 4 Cancer | Any T, N1-3, M0 any Gleason or Any T, any N, M1, any Gleason | On diagnosis of any one of the following: • Acute Myeloid Leukemia. • Chronic Lymphocytic Leukemia, (stage Ill or IV on the Rai classification, Binet C, Very High risk CLL- IPI). • Chronic Myeloid Leukemia (requiring bone marrow transplant). • Acute Lymphocytic Leukemia (adults). • Hodgkin’s/non-Hodgkin’s lymphoma Stage IV on Ann Arbor classification system. • Multiple Myeloma Stage Ill on the Durie-Salmon Scale |
On diagnosis of WHO grade IV |
| B | Stage 3 cancer | T4, NO, MO, any Gleason | On diagnosis of any one of the following: • Hodgkin’s and non-Hodgkin’s lymphoma. Stage Ill on Ann Arbor classification system Chronic Lymphocytic Leukemia (High Risk CLL IPI) |
On diagnosis of WHO grade Ill |
Important information regarding your dread disease cover
- Should you be diagnosed with one of the insured dread diseases, a lump sum equal to 0.75 x your annual pensionable salary could be paid to you
- You can claim for a maximum of two unrelated illnesses
- The maximum benefit payable is R2 000 000.00 per insured illness
- The payment of the dread disease benefit is subject to policy conditions and the level of the disease as defined in the policy
- Your claim form needs to be submitted within 3 months of diagnosis and the specialist reports must be submitted within 6 months
- A pre-existing condition could have an effect on your dread disease claim
A “pre-existing condition” is a condition:
- for which you were treated, or
- knew about, or
- could reasonably have been expected to know about, or
- which you sought medical advice for in the 6 months prior to employment or commencement date
The below table can be used as a guideline if you are uncertain whether a “pre-existing condition” could have an effect on your dread disease claim:
| Period 6 months prior to commencement date | Period 12 months after commencement date |
|---|---|
| Aware of condition/receiving treatment | Claim can be declined on grounds of pre-existing condition |
| Not aware of any condition | Can Submit claim to be assessed |
Understanding your Disability Cover
Your disability cover within the Fund is determined by the risk category you elected. If you have elected risk category A or B you are insured for a lump sum disability benefit and if you have elected risk category E (prior to 1 July 2023), you are insured for a monthly income disability benefit. When a disability claim is submitted, the Fund’s assessor will determine whether you qualify for the disability benefit according to the definition of disability. Let’s take a closer look at the differences between the lump sum and monthly income disability benefit:
| Lump sum disability benefit (Risk category A and B) | Monthly income disability benefit (PHI) (Risk Category E) | |
|---|---|---|
| Definition of disability | This benefit is payable once in the opinion of the assessor the member is totally, permanently and continuously disabled | This benefit is payable once in the opinion of the assessor the member is totally and continuously disabled in performing the normal duties of their regular occupation. After a period of 18 months has lapsed, the benefit is payable when member is totally and continuously disabled in performing any other suitable occupation. |
| Does permanency have to be established in order to qualify for the disability benefit | Yes, as the Fund cannot reclaim the benefit from the member should the member recover from the disability | No, this benefit can be stopped should the member recover from the disability |
| What is the time frame in which you should submit your disability claim | Claims for the lump sum disability benefit must be submitted within 180 days of impairment. The date of impairment can be defined as the date when the injury or illness became apparent | Claims for the monthly income disability benefit needs to be submitted within 3 months of the date of disability. The date of disability is normally the last active day of work. It could also be the date of accident |
| Why is it important to submit your disability claim within the required timeframe | Should the claim not be submitted within the required timeframe, the insurer will decline the claim | Should the claim not be submitted within the required timeframe, the insurer will decline the claim |
| Is there a waiting period linked to the assessment of my disability claim | The waiting period for the lump sum disability benefit is 3 – 6 months. This is the period of time that must pass before any disability benefit becomes payable. The purpose of the waiting period is to allow sufficient time to gather all necessary information to assess the claim. The waiting period starts at the date of disability | The waiting period for the monthly income disability benefit is 6 months. This is the period of time that must pass before any disability benefit becomes payable. The purpose of the waiting period is to allow sufficient time to gather all necessary information to assess the claim. The waiting period starts at the date of disability |
Important information regarding your disability benefit.
- Your disability cover stops when you reach the age of 65.
- Disability claim forms need to be submitted to the Fund within 180 days from date of impairment.
- Pre-existing conditions could influence your disability claim:
- Pre-existing conditions apply in cases where you were aware of a condition or receiving treatment 6 months prior to commencement date. These conditions will be excluded for a period of 12 months after the cover has been implemented.
- Approval of your disability is subject to the insurer’s policy conditions and definition of disability. In a nutshell, for the lump sum benefit (risk category A and B) permanency will need to be established in order for the claim to be approved, where with the monthly income disability benefit (risk category E), permanency does not have to be established in order for the claim to be approved
- Should a disability be caused by participation in the following, no insured benefit will be payable:
- War, riots, terrorism, criminal acts, strikes
- Radioactive/nuclear incidents
Important information regarding your death benefit.
- Your death cover stops when you reach the age of 65
- If you are older than 65 but younger than 75 years and you elected risk category F prior to 1 July 2023, you will have death cover, while in service, until the age of 75
- There are important legal provisions governing the payment of the death benefits as set out in Section 37C of the Pension Funds Act
- Your beneficiary nomination form and last Will and Testament serves as an important guideline to the Trustees to identify your dependants. This enables them to make informed decisions ensuring your dependants are looked after when you are no longer able to. Please ensure that you update your beneficiary nomination form on a regular basis.
Remember This!
The Fund has three benefits where the premiums must be taxed as a fringe benefit. These benefits are:
- Risk Category E – Monthly income disability benefit
- Dread Disease Cover
- Funeral Cover
As a result you may note a slight increase in your taxable income due to the fact that the premium for these benefits must be added to your taxable income, the advantage of this is that should you claim for one of these benefits you will not be taxed when the benefit becomes payable to you.