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 12%. |
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. | Yes |
| B: This category costs 5.076%. You save between 20.424% and 21.924% towards retirement. Councillors save 10%. |
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. | Yes |
| C: This category costs 2.184% You save between 23.316% and 24.816% towards retirement Councillors save 13% |
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 | Yes |
| 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 |
| 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 |
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 2.95% You save between 22.55% and 24.05% towards retirement Councillors save 12.05% |
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 and when you reach 65 you will receive your full member share as a retirement benefit. 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. | Yes |
| 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 |
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
- If you are on risk category A, B, C or E you are covered for dread disease benefit
- The following diseases are covered under the dread disease policy: stroke, cancer, heart attack, coronary artery surgery, blindness, renal failure, paralysis, and major organ transplants
- You can claim for a maximum of two unrelated illnesses
- A pre-existing condition could have an effect on your dread disease claim
- 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
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.
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.
Important information regarding your disability benefit.
- Your disability cover stops when you reach the age of 65.
- Members that have elected risk category A or B make provision for a lump sum disability benefit. This benefit ceases at the age of 65.
- Members on Risk category E will provide members with a monthly income disability benefit. When this benefit kicks in, you will remain a contributing member of the Fund, and remain covered for the death benefit. When you reach the age of 65 you will receive your fund value as a retirement benefit. The insurer can stop the monthly benefit if you no longer meet the requirements for the definition of disability.
- 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
- 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.