DEDUCTIONS ALLOWED FROM FUND BENEFITS

When benefits are paid to members certain deductions are allowed in terms of Section 37D and (Section 19 (5)(a) of the Pension Funds Act. These deductions are called a Lien. The deductions as specified below will be deducted from the member’s (fund value) share before the balance is paid to members, if applicable. These deductions are valid for claims relating to retirement, resignation, retrenchment, dismissal, death or disability benefits.

A lien is a deduction by the Pensions Funds Act to pay for:

• Maintenance orders (child support);
• Divorce orders;
• Home loans attained through the Provident Fund;
• Refund of damage caused to the employer by theft, fraud or dishonesty.