A benefit fund is a specific retirement or benefit fund configured against an employer in payroll. Where "fund" is the general concept, a benefit fund is the concrete fund an employer attaches employees to, with its own rules.
What it means
Each benefit fund carries the settings payroll needs to calculate contributions: its type (pension, provident or retirement annuity), whether it is defined contribution, defined benefit or hybrid, the basis it calculates on, and the employee and employer percentages or amounts. Those settings drive every contribution made through it.
Where it fits in
An employee is linked to one or more benefit funds; each pay run reads the fund's rules to work out the contributions, deducts the employee share and records the employer share. The fund's registration or clearance number identifies it for reporting.
Key rules
- A concrete fund configured against an employer, not the abstract concept.
- Holds the type, structure, basis and contribution rates used to calculate contributions.
- An employee may be linked to more than one benefit fund.
- Identified for reporting by its registration or clearance number.
