In this example:
- employee C (Ref No. 6) dies
- the beneficiaries are entitled to Group Life Assurance (GLA) plus a standard defined contribution (DC) benefit
- the GLA benefit of R500000.00 has been received from the insurer
- the employee contributions (R3000.00 (666.67 units)) and employer contributions (R8000.00 (1777.78 units)), which were invested in Portfolio 1, have been realised (R11000.00)
- the member had 5 years of service and is entitled to 50% of the employer’s contributions (this results in a withdrawal profit of R4000.00 to the fund)
- the unit price as at date of realisation was R4.50 per unit
- tax of R3500.00 is payable on the benefit
- as payment of the benefit to the beneficiaries was delayed, interest of R186.00, for the period from the date of realisation to the date of payment, is payable