Chartered Employee Benefits is committed to member education, believing that an empowered employer and employee make more sensible decisions about their finances and the well-being of all in their company. In keeping with this approach, here are some of the most commonly asked questions by those considering engaging the services of an Employee Benefits Financial Planning company.
Healthcare Benefits Questions
“I am healthy and that will never happen to me” is a common statement.
It’s well known that the public healthcare system does not meet the needs of our population and many citizens will opt for a private medical aid to meet their individual or family’s medical funding requirements.
At the very least you want to ensure you have sufficient cover to pay for medical expenses in the case of a planned or emergency event that may burn a hole in your pocket.
In certain cases, you may require us to champion your cause and challenge a decision handed down by a medical aid in respect of a claim or procedure. We have sufficient experience in our field to assist members where they may have a valid claim, barring cases that require legal intervention.
Call centres may cause you endless frustration and thus we have adopted a personal approach whereby a dedicated staff member will deal with your query and see it through until resolution. We hope that our quick turnaround times and personal touch impress rather than frustrate you.
Employee Benefits Questions
1. Transfer to your new employer’s fund,
2. Transfer to a preservation fund,
3. Transfer to a retirement annuity fund, and
4. Take the benefit in cash.
There are various implications of each choice. Ensure that you are well-informed with the decision that you take, especially the taxation that is paid from a pension to a provident fund, and taking the benefit in cash. If you are transferring to your new employer’s fund, ensure that you are satisfied with the management of that Fund, that is, how the assets are invested, how the management committee or Trustees are running the fund, for example.
How long will it take to pay out your benefit in cash? Most administrators of a retirement fund wait for your last contribution to be received before they are able to even begin with the ‘claim process’. The guideline for the pay-out is usually six weeks from the month in which you exited. If your tax affairs are not in order, this may take longer as you will need to resolve this with SARS first; for example, if you leave on 12 February, as a guideline, your benefit should be paid out to you six weeks from the end of February, that is, mid- April.