Look After Your Dependants

Member Newsletter

Quarter 1 • 2022

Why not make 2022 the year in which you plan for your financial future? Your family and loved ones are important, so plan for their financial security too. For example, what would happen if you were to die while working for Woolworths? We explain your death benefits and the importance of keeping your Nomination of Beneficiary Form up to date.

In this newsletter we describe some of the traditional asset classes that the Woolworths Group Retirement Fund may carefully consider to grow your retirement savings over the long term. Although our  investment decisions are made by professional investment experts, it will give you confidence to have some understanding of how and where your retirement savings are invested.

In This Newsletter:

Look after your dependants

YOU should TAKE CARE OF the financial security of your dependants in the event of your death.
THE Board of Trustees is responsible for the payment of YOUR death benefits IF YOU DIE.

If you die while working for Woolworths, the death benefits that are payable to your beneficiaries are investigated and distributed by the Trustees. This is governed by section 37c of the Pension Funds Act.

Fund benefits do not form part of your estate and are therefore not distributed according to your Will.

Image

If you die while working for Woolworths, the death benefits that are payable to your beneficiaries are investigated and distributed by the Trustees. This is governed by section 37c of the Pension Funds Act.

Fund benefits do not form part of your estate and are therefore not distributed according to your Will.

The Trustees decide to whom your Woolworths Group Retirement Fund and Group Life Assurance Benefit should be paid. They use your Nomination of Beneficiary Form as a guide.

Nominating your beneficiaries

First and foremost, it is most important that you keep your Nomination of Beneficiary Form current and up to date.
You must update your Nomination of Beneficiary Form whenever your personal circumstances change.

Image
For example:
  • if you get married
  • if you get divorced
  • if you have a child
  • if a dependent family member dies.

Be clear about your wishes

When completing your Nomination of Beneficiary Form, you must express your wishes very clearly. When the Trustees investigate cases, the most difficult ones to resolve invariably involve children from previous relationships, or more than one 'family' living together. These situations are often complex.

If your situation is complicated, please attach an explanation of your circumstances to your Nomination of Beneficiary Form.

In this way, the Trustees can make better decisions based on a more comprehensive understanding of your situation and your wishes. Any decisions that are made by the Trustees must be fair as they can be held accountable.

Who is financially dependent on you?

For every death benefit that is paid, the Trustees conduct a thorough investigation to establish who your dependants are and the extent of their dependency on you. The Trustees are required to consider all your legal dependants, such as:
  • a spouse
  • a customary law spouse
  • children
  • an ex-spouse receiving maintenance
  • any 'factual' dependants. These are people who are financially dependent on you, although there is no legal obligation for you to provide for them.

Examples of dependants

  • A mother or father who lives with you.
  • A nephew or niece whom you are assisting financially with education or other costs.
  • An unborn child who would have become your dependant had you not passed away.
Image

If you have no legal dependants, it is appropriate for you to nominate a beneficiary.

Beneficiaries can include a person, a welfare organisation or anyone that you would like to receive part or all of your benefits. If there are no dependants or beneficiaries, the full benefit will be paid into your estate.

In most cases where there is a spouse, the funds are paid to the spouse to care for the family. In some cases, however, the spouse shows that they are not competent to handle the money or their family responsibilities, so the money is placed in a trust for the children.

Legal guardians for single parents

When allocating death benefits to minor children who are orphans, the Trustees often encounter difficulties in paying out the benefit to the caregiver (this could be a grandparent or aunt with whom the child is living) if the caregiver is not the child’s legal guardian.

The Court can appoint a guardian, or a caregiver can apply to the High Court to be appointed as the legal guardian, but this can take up to two years – during which the Fund is unable to pay out any benefits.

If you are a single parent or if your children do not have a natural guardian, you can nominate a legal guardian for your minor children in your Last Will and Testament to take care of them after your death.

Ensure that your Will is always up to date, especially if the nominated legal guardian dies or moves away. Not specifying a legal guardian can cause financial hardship for family members or caregivers.

In This Newsletter: