A beneficiary fund is defined as a pension fund organization in the Pension Funds Act No.24 of 1956 of South Africa, as amended in 2008.[1] A beneficiary fund is a uniquely South African entity designed to accept and administer lump sum death benefits allocated in their discretion by retirement fund trustees to the minor dependants of deceased retirement fund members, as set out in section 37C [2] of the Act. Major dependants are also eligible to accept section 37C death benefits.
Beneficiary funds were introduced in January 2009. Advantages of beneficiary funds are that they are cost effective and tax effective, and offer institutional investment returns. Beneficiary funds are taxed in the same manner as retirement funds in South Africa, that is no tax is paid in the fund. Furthermore, any payment out of a beneficiary fund, whether capital or income, is tax free.[3]
Beneficiary funds are designed to protect the assets of those who receive death benefit payouts. They play an important social role in Southern Africa, particularly for single-parent and child-led households, allowing minor children to stand a better chance of completing their education if their assets are managed in a beneficiary fund vehicle which is protected under the Pension Funds Act and overseen by a board of trustees.[4]
Any retirement fund member, regardless of their level of financial sophistication, can consider the use of a beneficiary fund in estate planning as an alternative to a testamentary trust, by stipulating on their pension fund nomination form[5] that the trustees consider the use of a beneficiary fund in the event of their death.
Traditionally, beneficiary funds were regarded as a vehicle for children's assets but the concept has evolved to become more relevant and attractive to a broader market from a tax savings point of view. The education aspect has remained a dominant benefit of beneficiary funds however, allowing the payment of a monthly income to finance a child's entire education through to tertiary level and beyond. When the member turns 18, the beneficiary fund will engage with the member to determine the best use of his or her remaining funds into the future.[6]
beneficiaryfund is defined as a pension fund organization in the Pension Funds Act No.24 of 1956 of South Africa, as amended in 2008. A beneficiary fund...
proposed to use its residual funds for a child-feeding program beneficiary of US funding. The organization was created by resolution 57(I) of the United...
If a beneficiary is named, the segregated fund investment may be exempt from probate and executor’s fees and pass directly to the beneficiary. If the...
responsibilities. Every pension fund should have a governing body, accountable to the pension plan members and beneficiaries. This body is ultimately responsible...
Medicare tax changes). The Trust Fund represents a legal obligation of the federal government to program beneficiaries. Under current law, when the program...
an insurer or assurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of an insured person (often the policyholder)...
destination bank branches (for credit to beneficiary accounts): Free, no charges to be collected from beneficiaries Outward transactions at originating bank...
encourage saving for the future higher education expenses of a designated beneficiary. In 2017, K–12 public, private, and religious school tuition were included...
the original on 25 April 2019. Retrieved 25 April 2019. "Fairheads beneficiaryfund business not sold to Old Mutual". Fanews.co.za. 17 September 2013....
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investment seemed slim. In April 2017 it was revealed that the Bophelo BeneficiaryFund (BBF), effectively managed by the illegal Zimbabwean immigrant Bongani...
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charity, which is then invested to provide dividends for both the donor's beneficiary and charity. The donations are irrevocable and tax-deductible and must...
communities around the world and has over 43 million beneficiaries. One unique feature of the Adaptation Fund is its direct access mechanism, which enables accredited...
investment fund, which may take the form of a traditional mutual fund, a hedge fund, a private equity fund, a venture capital fund, a pension fund, a unit...
Investment Authority. Since its inception, the Kuwait Fund has given a total of 1056 loans, to 120 beneficiary countries, totaling KWD 6,835,224,180 billion over...
of damages to airline customers, and a $500 million crash-victim beneficiariesfund. In September 2022, Boeing was ordered to pay a further $200 million...
institution to decide, the other is for the institution to poll its beneficiaries. Assuming that the institution polls, should it then: (i) Vote the entire...
to funding received from a government or other entity at regular intervals, thus providing a steady inflow of financial resources to the beneficiary. The...
jurisdictions, a discretionary trust is a trust where the beneficiaries and their entitlements to the trust fund are not fixed, but are determined by the criteria...
of damages to airline customers, and a $500 million crash-victim beneficiariesfund. In June 2019, 737 MAX pilots jointly filed a class action against...
Organization, but are funded by the PA and employ over 500 bureaucrats. In 2017, $160 million was paid to 13,000 beneficiaries of "prisoner payments"...
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