When does disability payment stop?


Question:

What I would like to know is: If an employee goes out on disability and the disability benefit stops, does the provident fund automatically pay out or does the employer have to complete the usual withdrawal form? Taking into consideration that as soon as the employee's disability claim is admitted, the employee is terminated by the ER. Please advise

Answer:

Rorisang,

The disability payment only stops if the recipient is no longer unable to work, or reaches retirement age. In the first instance, the provident would not pay out (unless the recipient then leaves the employer he/she used to work for); in the second, the employee must submit the standard instruction form to HR, together with the required supporting documentation, to get the fund paid-out.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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