Written by Roy Bregman, admitted attorney with over 51 years’ experience in South African pension and disability law. Read more:
Pension and provident funds in South Africa offer vital protection for members who are unable to work due to permanent disability. These funds are regulated by both the Income Tax Act and the Pension Funds Act, which set clear standards for benefit payments and fund rules. When a member becomes disabled, the fund may pay a monthly income or lump sum referred to as a “disability benefit.” However, a common question arises: What happens to these payments when the disabled member reaches the fund’s standard retirement age?
This article explores the legal principles behind disability and retirement pensions, clarifies what disabled fund members can expect, and offers guidance for beneficiaries and professionals.
Definition and Purpose
Disability benefits are designed to compensate members who, due to illness or injury, can no longer perform their work, a state typically characterized as permanent disability under fund rules and tax regulations. These benefits are paid until one of three things happens:
Whether a member qualifies for disability benefits is a legal question guided by the fund’s formal rules. Decisions are often made by the fund trustees, or, in insured funds, by the insurer. These parties must apply definitions from legal and medical reports and act within their discretion as set out in the fund documentation.
End of Disability Pension
Once a disabled member reaches “retirement age,” the fund is legally compelled to cease disability benefit payments. The member now qualifies for the fund’s standard retirement benefits, which are typically paid for the rest of their life. You cannot receive both a disability and a retirement pension at the same time.
This cutoff point reflects compliance with legislation and ensures all members are treated equally under fund rules.
Key Differences Between Disability and Retirement Benefits
| Aspect | Disability Pension | Retirement Benefit |
| Eligibility | Permanent inability to work | Age-based (usually 65+) |
| Duration | Until retirement age, recovery, or death | For life after retirement age |
| Payment Type | Monthly income or lump sum | Monthly income or lump sum |
| Fund’s Role | Review and approve medical/legal reports | Pay-out according to age and fund rules |
Fund-Specific Rules and Practical Action
While the principle is universal, individual pension funds may have unique administrative and legal rules. Always check your fund’s governing documents and correspond directly with administrators for personalized advice.
If you are or represent a disabled member approaching retirement age, formally request:
Legal Principles in Practice
The key legal distinction is that a disability pension is a form of early retirement. It bridges the gap for permanently disabled members, but is not designed to run indefinitely. Once you become “a pensioner entitled to retirement benefits,” those disability payments are superseded. This approach aligns with South African law’s aims: protecting disabled members while maintaining funds’ compliance and sustainability.
Q: Can I get both a disability and retirement pension at the same time?
No. Once you reach your fund’s retirement age, disability benefits stop, and standard retirement benefits start.
Q: What if my fund rules differ from what’s described here?
Speak to the fund administrator and request written confirmation—some differences exist between funds.
Q: Are retirement ages changing in South Africa?
Yes, some proposals suggest raising retirement age from 65 to 67 or 70 for certain funds but check with your fund directly.
South African pension law clearly provides a safety net for disabled members, but it is equally clear that disability pension payments stop when you reach retirement age. At this juncture, you move onto your standard retirement pension, under rules designed to maintain fairness and compliance.
If you or someone you know is facing retirement while on disability pension, contact Bregman Moodley Attorneys for expert advice. Let us help clarify your rights, negotiate with your fund, and secure your financial future.