Stability in the industry and the security of its members is at the core of SARPBAC’s purpose. The establishment of the SARPBAC Retirement Fund, effective from 01 January 2013, will further assist in ensuring a secure future for its members.

The objective of the SARPBAC Retirement Fund is to provide benefits for its members up on their retirement on account of ill-health, or for their dependants or nominees upon the death of the member.

The Fund, which is fully invested in the Momentum Multi-Manager Smooth Growth Fund, is managed by Momentum Retirement Administrators. The Momentum Multi-Manager Smooth Growth Fund seeks to provide financial certainty at retirement and provides members with a highly dependable investment, with continuous capital protection on their benefits, and smooth inflation-beating returns in the medium term.


A Momentum Retirement Fund Administration representative is conveniently situated at SARPBAC’s office in Rondebosch. Contact the Helpdesk on 021 686 4281 or

How the fund works

A member belonging to the SARPBAC Retirement Fund earning a pensionable salary each month contributes 7.5% of the pensionable salary to the Pension Fund and the member’s employer contributes 10% of the pensionable salary to the Provident Fund. Certain administration costs are deducted from the monthly contribution.

The SARPBAC Pension Fund operates on a defined contribution basis, which means that both you and your employer contribute a fixed percentage of your pensionable salary each month.

An allowance for administration expenses and insured death and disability cover costs is deducted from your employer’s contribution. The balance is invested together with your contributions in the investment portfolios you choose, and grow depending on how well the portfolios perform. The Fund therefore operates in a similar manner to having your own personal savings account.

Using the cost calculator calculate your expected contribution that goes towards retirement after deductions are made.


The SARPBAC Retirement Fund is fully invested in the Multi- Manager Smooth Bonus Fund, as selected by the Trustees of the fund.

The objective of the Multi- Manager Smooth Bonus Fund is to protect the interests of the members for whom this product was designed and to provide retirement fund members with a highly dependable investment, offering continuous capital protection on their benefits, and smooth inflation-beating returns in the medium term.

What happens when you leave

When you leave the Fund for any reason, your benefit will be calculated as the sum of all the contributions made by you and your employer towards retirement funding plus investment returns on these amounts.

  • On retirement (including early or late retirement) you can take a maximum of one third as a cash lump sum and the balance a monthly pension.
  • On withdrawal (including resignation, retrenchment or dismissal) you can take the full accumulated amount as a lump sum. In order to save for retirement, we recommend that you consider preserving your withdrawal benefit in a preservation vehicle set up for that purpose. If you take the money as cash it will be taxed
  • On death (while still employed) your beneficiaries will also receive three times your annual pensionable salary at date of death,  plus a funeral benefit of R15 000.00. For more information, download the summary of benefits.
  • If you have become disabled, you will also receive an income benefit of 75% of your monthly salary. While you are disabled you will continue to be covered for your death and funeral benefits.

How the fund is managed

The SARPBAC Retirement Fund is a hybrid fund comprising two components:

The Trustees of the Fund as appointed by the Council: 

  • Meshack Ramela – Chairperson
  • Gary Wilson – Principal Officer
  • Kobus Burger – Trustee
  • Grant Fleetwood – Trustee
  • Solomon Mahlangu – Trustee
  • Chris Fredericks – Trustee
  • Sebido Molekane – Trustee
  • Renier Grosch – Independent Trustee

Benefits and Contributions

It is important to note that the cost for the insured death, funeral and disability benefits is included in your Employer’s contribution of 10%. You and your employer pay for the administration expenses, and the balance goes towards retirement funding.

The following table clearly outlines all benefits and costs associated with the SARPBAC Retirement Fund. 

You can also download the SARPBAC Retirement Fund Summary of Benefits 


When to submit a Disability claim

It is important that Momentum is informed of a potential claim as soon as possible. Once Momentum has been notified we can advise the employer if any specific medical assessments or tests are needed or if a specific medical practitioner needs to be consulted. This can prevent unnecessary delays. A claim should be submitted when an employee, due to illness or injury, is:

  • Unlikely to return to work
  • Is on sick leave for longer than 10 working days
  • Has returned to work but is unable to perform the duties of their own job and is unable to perform any other job
  • Shows a decrease in productivity due to a medical reason 
  • Has a medical or psychiatric incident and may require hospitalisation, rehabilitation or to be off work for an extended period of time.

The maximum period allowed for the submission of a claim is three months from the date that the employee was last able to properly perform their normal duties.

The Disability Claims Guide  provides full details on the claims process and how to submit a disability claim.

Please visit the Forms page to download the relevant disability claim forms.

The Bargaining Council is pleased to announce that after undertaking a risk benefit re-broke, New Disability Benefits, at a cost savings to members, are going to come into effect from 1 September 2019.

Employer Registration

New participating employers are required to complete the Installation Form

To register new members, please complete the Bulk New Member template


Dear Employer

In keeping with our promise to offer quality retirement fund administration to our clients, we would like to introduce our new and innovative system capability, ePort. ePort is a web-based administration gateway to MRA administration system, Benchmark, that is aimed at minimising process inflexibility, caused by manual inputs and parallel paper trails. The employer portal enables each employer to initiate and track the claim process in the event of retirement, withdrawal, or the death of a member. It enables the employer to print ad hoc benefit statements for their members.

We take cognisance of the sensitive nature of the data entrusted to us by the Board of Trustees. It is for this reason that high security protocols have been implemented to ensure that authentic users are authorised to access ePort. Kindly nominate the authorised Human Resources Practitioners to access ePort on the ePort – Authorisation Form.

The registration form should be completed by the authorised Human Resources Practitioner.

Legal & Tax

Pension Funds provide a tax efficient way for members to save for retirement. Pension Funds are therefore governed by Pensions and Tax law to ensure that members’ benefits are protected and that the tax advantages are not abused.

The Pension Fund’s Act, 1956 as amended provides for the registration and regulation of all funds established with the objective of providing retirement benefits for its members. 

The tax treatment of benefits and investments associated with pension funds are detailed in the Income Tax Act, 1962 as amended. 

Your tax benefits under the Fund

Members enjoy certain income tax benefits by virtue of their membership of the Fund; however these benefits come with certain income tax obligations for the members. 

The Fund has been structured to provide you with tax efficient benefits in order to ensure that the member and Employer contributions are paid into the Fund tax-free (up to certain prescribed limits). 


Member contributions are tax-free. This means that your own contributions to the Fund are deducted from your salary before you pay tax. This reduces your taxable income and therefore reduces the tax that you pay. 

The employer’s contributions are also tax-free. 


The taxable retirement fund lump sum accrued from 1 October 2007 and withdrawal benefits accrued from 1 March 2009 are aggregated. The aggregated lump sum benefits that arose as a result of early retirement, retirement and death are taxed according to the following SARS tax table (2013/2014).

  • The first R315 000 plus any contributions for which no tax deduction was allowed is tax free,
  • R315 001 – R630 000 is taxed at a rate of 18%;
  • R630 001 – R945 000 is taxed at a rate of 27%; and
  • Amounts above R945 001 are taxed at 36%.

Members who transfer benefits from a public sector funds, e.g. the Transnet Pension Funds to this Fund are allowed to add the benefits accumulated pre -1998 to the R315 000 tax-free amount.

The new provisions only apply to retirement and death benefits accruing to members on or after 1 October 2007.

Resignation or retrenchment benefits

The tax-free portion with effect from 01 March 2009 is:

  • R22 500 plus amounts transferred to another approved fund; and
  • Contributions not previously deductible plus the pre-March 1998 portion transferred from a public sector fund.

Commutation of small annuities (applicable to pension fund section only) 

Members can withdraw 1/3 of their pension benefit as a lump sum and the balance must purchase an annuity. However where the value of the 2/3 that is required to purchase a compulsory annuity does not exceed R50 000, the annuity can be commuted in full. This means that if the total value of the member’s pension benefit is R75 000 or less, the member can withdraw the full benefit as a cash lump sum. This provision came into operation from 1 October 2007; therefore it is applicable to all members who retired on or after 1 October 2007.

Monthly Pension

Monthly pensions are subject to income tax in the same way as when you were receiving a salary.


  1. Claim forms
  2. For Death and Retirement Claims download the SARPBAC Benefit Claim Form 
  3. For the transfers of benefits to another approved fund download the SARPBAC Transfer Detail Form 
  4. In the event of a member’s divorce download the SARPBAC Divorce Claim Form 
  5. Risk Benefit Death Claim and Funeral Claim Form 
  6. Beneficiary Nomination Form 

Disability forms

  1. Concise notification – initial disability claim advice 
  2. Comprehensive notification  – this form needs to be submitted within three months and needs to be accompanied by the following completed documents:
    1. Statement by Employee
    2. Application for Disability Benefits
    3. Application for Disability Benefit Statement by Attending General Practitioner 
    4. Application for Disability Benefits Statement by Specialist
    5. SARS Notification – this form is required to notify Momentum of a potential or pending disability claim
    6. Confidential Medical Report