RA refund deadline looms

Johannesburg - Long-term insurers are looking for former clients who had their retirement annuities (RAs) paid up between January 1 2001 and December 1 2006.

It is possible that insurers owe these people money, but claims have to be submitted before December 1.

The repayments relate to the December 2005 declaration of intent between long-term insurers and National Treasury to reduce fund values of discontinued RAs by no more than 35%.

In terms of the declaration of intent, life insurers undertook to up the value of discontinued policies or of those whose premiums had been reduced or suspended. This also applies to policies transferred to other funds.

It is entirely possible that the fund values of RAs discontinued between January 1 2001 and December 1 2006 were reduced by more than 35%. This is the money that insurers now wish to pay to former RA fund members.

In cases where policies were carried over and premiums lowered or suspended, the increased amount was paid into the fund.

In the case of a policy being discontinued, the amount exceeding 35% of the fund value is repaid in cash.

Hennie de Villiers, CEO of Sanlam Topaz, said all amounts of more than R150 owing to members will be paid out to them in cash.

Repayments on RAs can also be claimed by dependants of a former fund member. After December 1 2009 no claims for cash repayments will be accepted.

- Sake24.com

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