Fairheads Umbrella Beneficiary Fund

The Fairheads Umbrella Beneficiary Fund was one of the first to be registered in South Africa.

Fairheads Umbrella Beneficiary Fund is one of only two beneficiary funds with more than R1 billion in assets under management.

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What is the Fairheads Independent Beneficiary Fund?

The object of the Fund is to administer benefits awarded to beneficiaries upon the death of a member from the Old Mutual SuperFund Pension and Provident Funds, as well as other Old Mutual Sponsored Retirement Funds in terms of Section 37C(2) of the Pension Funds Act.

Benefits are administered so as to provide financial support to members in the form of regular monthly distributions and to utilise the funds to facilitate ad hoc payments in respect of the Members’ maintenance, education and general well-being, including medical costs.

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Why Nominate A Beneficiary Fund On Your Nomination Form?

Everything we do is aimed at making life better for our children, with each beneficiary fund aimed at ensuring each minor’s educational costs are covered until they complete their school career.

Educational Costs

The main aim of the beneficiary fund is to pay towards educational costs until the minor child completes his/her education.

General Living Costs

Regular payments made to the guardian or caregiver assist towards the general living costs of the minor child.

Protected Funds

The funds are protected in the case of change of guardianship or caregiver.

Tax Free

No tax is paid in the fund and any payment out of the fund, whether capital or income, is tax free.

Fund Management

The guardian/caregiver is relieved of the burden of managing and investing funds for the child.

Why is the money put in this beneficiary fund?

When a member of a retirement fund dies, the trustees of that fund must by law distribute the benefit amongst the
dependants of the deceased member in the best possible way.

The trustees can decide that instead of paying that money directly to the dependants, it will be paid into a beneficiary fund. This fund is such a beneficiary fund. Its purpose is to administer the money that was awarded to these dependants (who are the members of this fund).

Member Fund Account

How it works

A member account is opened when a death benefit payment is transferred into this beneficiary fund. The aim is to make this money in the member’s account last until the member turns 18 and preferably finishes Grade 12.

Inflow

Death Benefit

A death benefit payment is transferred into your member account.

Investments & Returns

The money in your member account is invested and any investment returns are added to your account.

Fully managed and monitored

Your member account is carefully monitored and managed so that it can last as long as necessary. That is why not all claims that you ask for are paid.

Outflow

Charges

Fees are charged to administer the money in the member account.

Various Payments

Various payments can be made from
the member’s account.

Regular payments

Regular payments can be made from the member’s account every month, to pay towards general,day-to-day costs.

Financial Assistance

Special financial assistance payments can be made on request, to pay towards
specific costs such as school fees, uniform, books, stationery, transport, etc.