ENS (Edward Nathan Sonnenbergs) has extensive experience advising on the complexities surrounding pension and provident funds and, by cross-referencing with other business areas of the firm, are able to offer all-round advice to clients looking for expertise in these funds. As the largest full-service law firm in Africa, our clients benefit from our substantial offering which includes the drafting and interpretation of rules for pension and provident funds, effective compliance with local regulations and our technical and administrative advice.
Pension and Provident Funds provide benefits for members when they retire from employment and, in addition, often pay benefits when members are unable to work because of illness or retrenchment. They also pay benefits to beneficiaries of the member should the member pass away while still working. The main difference between a pension or provident fund is that if a pension fund member retires, they receive one third of the their total benefit in an immediate lump sum while the balance is paid out in the form of a pension over the rest of the member’s life. A provident fund member, however, receives the full benefit paid in a once-off cash lump sum.
