• How do I become a member of the provident fund?

    Your employer is required to be a participating employer in the fund if it is an employer in the Private Security Sector. The employer is required to register you as a member of the Fund when you become an employee of the employer.

  • What happens when my company changes its name?

    When your company changes its name, it does not alter the status of the company nor does it affect your status as a member of the fund. The fund will continue to hold your fund credit as per your personal identity details, which it held under the company’s previous name. Your contributions will continue to be paid by the company, just under a different name.

  • What happens if I am dismissed from employment?

    When you are dismissed from employment, you are generally entitled to the payment of a withdrawal benefit as a cash lump sum, alternatively you may in writing elect to become a dormant member or transfer your fund credit to an approved pension or provident fund, approved pension or provident preservation fund or approved retirement annuity fund.

    However, should you not make an election within 6 months of leaving service, you would be deemed to have elected a cash lump sum benefit. This is subject to the proviso that, when the fund is able to effect transfer/make payment of the benefit, and you are still an employee of an employer in the private security sector, then the benefit will not be transferred or paid to you but will be retained and will be merged with your new record.

    You may however, not be entitled to the payment of your benefit in instances where a section 37D deduction is allowed in terms of the Pension Funds Act where, for example, you have caused damage to the employer by reason of theft, fraud, dishonesty or misconduct in respect of which you have admitted liability to the employer in writing or where judgment has been granted against you by a court of law.

    The fund may also withhold the payment of a benefit in instances where an employer has instituted civil proceedings or where criminal proceedings have been instituted against you in respect of the above instances.

  • What happens if I resign from employment??

    When you resign from employment, you are generally entitled to the payment of a cash withdrawal benefit, transfer of your benefit, or you may elect to become a dormant member, except in instances outlined above.
  • What happens if I become disabled due to sickness?

    Your employer should notify the fund that you have become totally and permanently disabled. Satisfactory medical evidence must be given to the fund showing that you have become totally and permanently incapable of doing your own job (engaging in your own occupation) or in any other occupation for which you could be reasonably considered capable of engaging by virtue of your training and general experience, in the trustees’ opinion.

    You must note that the claim must be notified to the trustees and/or the administrators in writing no later than 6 months after the last day on which you were at work attending to all your normal duties.

    The relevant documents and/or particulars required by the trustees and/or the administrator must be submitted within 12 months after the last day on which you were at work attending to all your normal duties.

    The trustees have the right to call for medical evidence to their satisfaction.

    Should you have a pre-existing condition and you are disabled within 12 months of becoming a member, by reason of that injury or illness in respect of which you sought medical advice or you knew or could reasonably have been expected to know about, 6 months before the date on which you became a member, your disability claim will be repudiated

    Should the disability application be successful, in addition to your fund credit you may be entitled to a disability benefit of 3.25 times your annual fund salary subject to the maximum capital disability benefit. If you become disabled during the 10 (ten) years prior to normal retirement date, the benefit will decrease in accordance with the following table, depending on the number of years prior to normal retirement date:


    Years prior to normal retirement date


    Percentage reduction

    9 10%
    8 20%
    7 30%
    6 40%
    5 50%
    4 60%
    3 70%
    2 80%
    1 90%

    A disability benefit shall not be payable after you have reached the normal retirement date of 65 years of age.

  • What happens if I am involved in an accident?

    If you are involved in an accident and you lose any part of your body, you can apply to Bophelo Life for an accident benefit. Should you be totally and permanently disabled your employer may apply for a disability benefit to the fund, with the requisite medical evidence.

    If all the requirements for permanent disablement are met, you will receive a disability benefit.

  • What do I do to confirm that my employer does make payment to the retirement fund?

    You may contact the fund’s administrator, Salt Employee Benefits or enquire at any of the Fund’s regional offices to confirm that the employer makes contributions on your behalf. It will also be reflected in your benefit statement that you should receive once a year.
  • What are the benefits due to a member who dies in service?

    The death benefit payable upon a member’s death in service is 3¼ (three and a quarter) times annual fund salary plus his/her fund credit.

  • What is an AOD?

    An AOD is an Acknowledgement of Debt Agreement. In the context of the fund, this is usually an agreement entered into by the employer with the fund whereby the employer acknowledges his indebtedness in respect of the payment of outstanding contributions and late payment interest for past periods, and affords the employer a limited period of time within which to pay the outstanding contributions together with late payment interest in order for members’ full benefits to be paid. In the event that an employer breaches this agreement the employer then the civil litigation route is followed as well as the criminal litigation by way of reporting the theft/fraud to SAPS.

  • What action can I take as a member if my employer does not pay?

    When you become aware of your employer not making provident fund deductions from your salary and further not making payments to the Fund, you must alert the Fund at the regional offices of this breach. You may also lodge a complaint with the Office of the Pension Funds Adjudicator. You may further open a criminal case of theft against the employer with SAPS.

  • What do I do to receive my latest benefit statement?

    You may ask your employer for a copy of your latest benefit statement, which the employer can print from the Fund’s portal system.

  • Why is my benefit taxed when I leave employment?

    Your benefit is taxed in terms of our laws, more specifically in terms of the Income Tax Act.

  • What are the duties of the administrator?

    The administrator administers the fund. It keeps the records of the members of the fund. It allocates the contributions received to the members’ accounts and pays out members’ benefits pursuant to the receipt of withdrawal claim forms and instructions received from the fund.

  • What is the role of a trustee?

    Trustees are required to manage the fund’s assets impartially in terms of the legislation and rules of the fund for the benefit of members.

  • How are all trustees elected in the fund?

    In terms of Rule 12 of the Fund’s Rules, on or before every 5th anniversary of 31 July 2011 (that is on or before 31 July 2016 and 31 July 2021, and so forth), unions with the largest number of members, according to the most current verification exercise by the CCMA, which are eligible to appoint the member trustees, must be notified by the Fund in writing that each such union must within 21 days of the date of such notification appoint a person to be a trustee. This must take place according to the processes set by the CCMA.

    An employer organisation qualifies to appoint an employer trustee if the number of employees that its members employ in the private security sector exceeds the required threshold set by the CCMA.

    As is the case with member trustees, on or before every 5th anniversary of 31 July 2011, the employer organisations must be notified by the Fund in writing that such employer organisations must within 21 days of the date of such notification, appoint 6 persons to be employer trustees.  This too must take place according to the processes set by the CCMA.

  • What is a Sectoral Determination?

    In terms of section 51(1) read with section 55(1) of the Basic Conditions of Employment Act (“the BCEA”), the Minister of Labour may make a Sectoral Determination establishing basic conditions of employment for employees in a sector or area.

    In terms of section 55(4)(m) of the BCEA, a Sectoral Determination may regulate inter alia pension and provident funds.

    Pursuant to sections 51 and 55 of the BCEA, the Minister of Labour issued Sectoral Determination 3 in 2001, which applies to the private security sector and deals amongst others with pension matters. Sectoral Determination 6 replaced Sectoral Determination 3 in November 2001. Sectoral Determination 6 has been amended over the years, and the latest version was published on 1 September 2015.

    Sectoral Determination 6 deals with various matters relating to conditions of employment of security guards. It does not only deal with pension matters.

    It deals with amongst others hours of work; compensation; sick leave; severance pay; maternity benefits and prohibition on the employment of children.

  • What is the role of the Pension Funds Adjudicator?

    The main role of the Pension Funds Adjudicator is to dispose of pension related complaints that have been lodged with her office in a procedurally fair, economical and expeditious manner.

  • What is the role of the Principal Officer?

    The Principal Officer ensures that Board decisions and all legal requirements are carried out. As the person who implements Board decisions, he has to liase with all the appointed Service Providers.

    Here are some of the duties of the principal officers:

    • He must ensure that the fund complies with the Act and the regulations thereto.
    • He must advise the Registrar of Pension Funds of any changes in the rules of the fund.
    • If a fund consolidates its rules, the principal officer must forward a copy of the consolidated rules to the Registrar.
    • Within six months after the end of the fund’s financial year, the principal officer must inform all members of the fund of all amendments that may have been effected to the rules during the particular financial year.
    • The board of trustees and the principal officer must produce a certificate to accompany the valuation report. The certificate must confirm that such valuation report reflects the true position of the fund, and that a copy of the report has been sent to every participating employer.
    • The principal officer must sign all documents, other than the rules and the annual accounts and statements, on the first page together with a trustee and the chairman of the board.
    • The principal officer must submit the financial statements on behalf of the fund to the Registrar within six months of the end of the fund’s financial year.

    The principal officer is the official representative or contact person of the fund with the Financial Services Board.

  • How many offices does the fund have?

    The fund has 5 offices located in Durban, Bloemfontein, Cape Town, Port Elizabeth and Cape Town. There are also mobile offices that operate in other areas where the fund has no offices.