Death Benefits




Please note that certain exclusions may apply to your death cover. For more information, please click here to view the latest Group Risk exclusions document.

What gets paid by the UCTRF when I die?

If you die before you resign, are dismissed/retrenched, or retire, a benefit equal to your Accumulated Retirement Savings in the UCTRF plus a lump sum death benefit of 6 times your DPA is payable.  However, if you are an eligible contract staff member whose contract started before 1 July 2017, you do not have the 6 X annual DPA cover mentioned above.

You may choose to reduce your death benefit by 1, 2, 3, 4, 5 or 6 times your annual DPA, but your total death benefit (Accumulated Retirement Savings plus Death cover) may not be less than 4 X your annual DPA.

If you elect to reduce your death cover in this way, your Accumulated Retirement Savings will be credited with the savings in the Risk Premium.

What level of death cover do I need?

The amount of death cover that you need depends on how many dependants you have, the age of these dependants and how financially dependent these dependants are.

Before electing to reduce your death cover, you should make sure that you have sufficient cover. You should take into account any death cover you have in addition to the benefit provided from the UCTRF (e.g. the separate Group Life Assurance Scheme).

These include:



How will my UCTRF death benefit be distributed?

Your Beneficiaries (i.e. the individuals you nominate to receive a portion of your death benefit) can be divided into two groups:


Dependants include a spouse, life partner, children and anyone else who may be financially dependent on you.


Nominees are Beneficiaries who are not financially dependent on you.


In terms of legislation (i.e. Section 37C of the Pension Funds Act), in the event of your death, your benefit should be distributed as follows:

Your Nomination of Beneficiaries Form is used to guide the Board when allocating the death benefit. They have the right to distribute your death benefit to dependants and/or nominees in a manner that they believe to be fair and just to all parties.

You should review your Nomination of Beneficiaries Form at least annually or in the event of a life such as a birth, death or separation/divorce.

Click here to update your form online or click here to download a hard-copy option.

If you would like to motivate your recommendations, include this with your nomination. Please draft your motivation on the assumption that it will be acted on in the next twelve months. You can update this at any time.

The benefit payable by the UCTRF on a member’s death does not form part of your estate. You therefore may not allocate it in your will.

The Pension Funds Act assumes that the Board may take up to twelve months before making decisions. This allows the Board time to trace dependants. The Board will, however, try to make such decisions sooner if they have all the relevant information.

What is the Separate Death Benefit?

A further one times annual DPA is paid from a separate Death and Disability Policy, provided that the member has not already received a disability lump sum benefit from this arrangement. However, eligible contract staff members whose contract started before 1 July 2017 have cover of three times their annual DPA under this scheme.  This benefit is not taxed (because you pay tax on the premiums).

You can choose to pay an additional amount to increase your cover to up to 5 times your DPA. The premium for this additional cover will be deducted from your salary in addition to the contribution that you are already making. You can change your additional cover between 1 August and 31 October annually. You will be provided with information regarding how to make this change when you receive your annual benefit statement.

How will my Separate Death Benefit be distributed?

This benefit will be distributed to whomever you have nominated.  You may nominate different Beneficiaries for the UCTRF death benefit and the Separate Death Benefit if you wish to.

What if I die after I have left employment (because I resigned, was dismissed/retrenched, or retired)?

There is no death benefit after retirement, so only your Accumulated Retirement Savings will be paid. 

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