Which options can employers choose from?

There are two options to choose from including:

• Occupational Capital Disability.

• Progressive Capital Disability.

What is the Occupational Capital Disability option?

• This option pays a cash lump sum if a member becomes permanently occupationally disabled, resulting in 'own or reasonable occupational disability' or 'total disability'.

• Where the impairment results in a member no longer being able to work, 100% of the benefit is payable and the member may retire due to ill-health. In this case, the member's Group Life Assurance benefit will be cancelled.

What is the Progressive Capital Disability option?

• This is a comprehensive disability benefit, which pays a cash lump sum if a member becomes permanently occupationally disabled, impaired or both.

• Where the impairment results in a member no longer being able to work, 100% of the benefit is payable and the member may retire due to ill-health. In this case, the member's Group Life Assurance Benefit will be cancelled.

• In instances where the member is permanently impaired, but still able to work, the benefit payment may be staggered. Members have the ability to make multiple claims of up to 100% of the total benefit.

• These staggered claim payments do not reduce the member's Group Life Assurance enefit cover.
  
  However, once the member has received 100% of the benefit, the member retires due to ill-health and their Group Life Assurance Benefit will be cancelled.

How much are members covered for?
For salary-based schemes, cover may not exceed (whichever is less):

• A member's Group Life Assurance Benefit cover.

• 10 times a member's annual salary.

• R7.8 million. This maximum is reviewed annually.

• 2.5 times a member's annual salary, subject to maximum of R690 000 (if taken with an income disability benefit other than the Limited Term Income Protection Plan).

For Rand-based schemes, cover may not exceed:

• 100 times the total contribution made by and on behalf of the member.

When will a member's cover end?

Cover will end if a member (whichever comes first):

• The member cancels their scheme membership.

• The member Reaches the scheme's Termination age, as outlined in the Employer Participation Schedule.

• The member turns 65 years of age.

• The member passes away.

1. Own or reasonable occupational disability (Glossary):

This means incapacity arising from bodily injury, illness, disease or surgical operation resulting in a member being totally and permanently disabled and incapable of performing their current occupation's duties, or the duties of another suitable occupation. This must take into account their education, previous training, abilities and work experience.

2. Total disability (Glossary):

This means incapacity arising from bodily injury, illness, disease or surgical operation leaving a member continuously and wholly incapable of engaging in any occupation for remuneration or profit.

3. Impairment (Glossary):

This means any bodily injury, illness, disease or surgical operation that has stabilised sufficiently over a period of time to allow optimal tissue repair, and is unlikely to change in spite of further medical or surgical treatment.

The percentage of the impairment benefit is based on the Whole Person Impairment (WPI) principle, where the benefit payable depends on the severity of the impairment. WPI uses the latest American

Medical Association (AMA) guidelines to evaluate permanent impairment.