Disability Income Insurance Benefit

What is the Disability Income Benefit?

The insured disability income benefit is designed to provide you with income replacement if you are totally incapacitated and unable to carry out the duties of your office as a result of illness or injury.

How Much Will I Receive?

• 75% of your monthly pensionable salary, up to a maximum of R220,000 per month.
• The benefit also covers the State's contribution to the Fund on your behalf (22.5% of pensionable salary) — up to a maximum of R60,000 per month. This means your Fund Credit will continue to grow while you are disabled.

As the Insurer funds the State's contribution to your retirement savings, you retain a form of pension savings accrual for the duration of your disability.

Waiting Period

The disability income benefit does not start immediately. There is a 6-month waiting period before payments begin, measured from the date you first became disabled (i.e., the date you stopped working due to your illness or injury).

During the waiting period your legislature will ordinarily continue to pay your salary. You must confirm the exact arrangements with your HR Department.

When Does the Benefit Cease?

The benefit will cease on the earliest of the following:

• When you recover and are able to perform the duties of your office again;
• When you die;
• If you were under age 50 when you became disabled — when you reach age 65;
• If you were age 50 or older when you became disabled — when you have received the benefit for 15 years, or when you reach age 70 (whichever is earlier).

When the disability income benefit ends you would normally commence your retirement pension (or lump sum).

Important Points to Note

• The benefit is subject to the detailed conditions in the insurer's Group Disability policy — full details are available from AlexForbes.
• Insurance exclusions apply. For example: disability resulting from self-inflicted injury, active participation in war, or criminal activities.
• The benefit will be subject to tax as it replaces normal salary.
• Should the cost of insured benefits increase above the amount allocated by the State for insurance (4.8% of contributions), benefit levels may be reduced.

How to Claim

Contact the Fund's Administrator (AlexForbes) as soon as possible to initiate a disability income claim. Your legislature's HR Department will also need to be involved.

For contact details see the Contact page.