The Fund offers its members an innovative income disability benefit. Every member is automatically covered for this benefit on joining the Fund, however you are allowed to opt out of the benefit when completing your member application form. We strongly encourage our members to consider the merits of this option as joining the disability insurance scheme at a later stage is restricted to life events only and on condition that it is requested within 3 months of the specific life event.

What is the advantage of electing this benefit?

The Income Disability Benefit pays a monthly benefit to the member who becomes totally and permanently or temporarily disabled, until the member recovers, dies or reaches the benefit cessation age which is the normal retirement age of 65. As soon as a benefit in respect of an employee becomes payable, payment of premiums in respect of the employee’s Income Disability insurance is discontinued and the member receives the following A & B benefits:


A Monthly Annuity

A tax-free monthly income is paid to you for as long as you are incapacitated up to a maximum of your normal retirement age (65). Not only are these monthly payments tax free, but they will increase by the lesser of inflation or 7% every single year. The increase percentage can change from year to year.

The level of your benefit (i.e. the % of pensionable salary) will be determined by your age at disability subject to a maximum monthly payment of R220 000. The table below shows the benefit applicable to the various age bands:
Once a member’s claim is admitted, the member’s benefit will not reduce as the member gets older.
A member aged 42 becomes disabled and the insurer grants the benefit. The benefit payable will amount to 65% of pensionable salary as at the date of disability and this level will be maintained for as long as the claim is valid.
The disability benefit becomes payable 3 months after the member became disabled and is payable until the member’s death, recovery or retirement (at age 65), whichever occurs first.

In order to receive a disability benefit the member must be medically assessed and the member’s medical condition must satisfy the requirements as set out in the insurance policy. A member will be regarded as disabled if in the opinion of the insurer, and after the expiry of the 3-month waiting period, the member is continuously and totally unable to perform his own occupation. Once in receipt of a disability benefit, the insurer will monitor the member’s condition and will require regular medical reports from specialists for that purpose. After 2 years, the member’s disability will be measured against the member’s ability to perform a similar occupation taking into account the member’s education, training, experience and degree of disability.
If the member is a higher earner (i.e. where your disability income benefit exceeds the maximum monthly amount as stated above, including the employer waiver), the member may be asked for proof of good health before the insurer will cover the member for the full potential benefit. The member will be informed should this be necessary.


You will remain a member of the LA Retirement Fund

The insurance policy will pay both your monthly member and employer contributions to the Fund over and above the benefits in A above. This means that you will remain a member of the LA Retirement Fund for as long as the disability benefit is paid and your member share will continue to grow by contributions and investment returns. You will also keep your funeral cover and your Optional Death Benefits for as long as you remain a member of the Fund.

The optional insured income disability benefit has the following additional benefits:

Survivor Benefit – The survivor Benefit is payable on the death of the members and will consist of the payment of an additional three months of the Benefit, unless the Benefit would have ceased earlier in terms of the policy had the member not died.
Rehabilitation Benefit – the insurer will pay certain rehabilitation costs directly to the party providing or facilitating the members Rehabilitation.
Recovery Bonus – A recovery bonus is payable if a member successfully completes a Rehabilitation program and returns to work. The recovery bonus is an amount equal to three times the Member’s last Disability Benefit before the Member returned to work.
Terms and conditions apply to all the benefits please see the policy for more.

What happens when the Optional Insured Income Disability Benefit stops at age 65.

As the insurer paid both the members and employers monthly contributions to the Fund, the members member share has continued to grow throughout the disability period. At age 65, the member retires and receives the retirement benefit.
The conversion option applies to the income disability benefit.

You must be in it to win

On page 3 of the December 2022 Member Newsletter, we announced a competition, where you could win a prize.

All you need to do is have your photo taken next to the Fund’s calendar and/or poster and send it to us. The competition closes on Tuesday, 31 January 2023.

Please send the photo to:

Email: [email protected]

WhatsApp: 081 778 0923

When sending in the photo, please tell us your name, your pension number or identity number and which municipality you work at. Please note that subject to the discretion of the Fund, all or some of the pictures submitted, may be published on the Funds’ website and/or on the Funds’ Facebook page.

Hurry to enter the competition, your photo could win the prize!