Insignificance

Insignificant termination benefits can be paid directly to the insured person by the pension scheme (pension fund).  They do not have to be deposited in a vested benefits account.

A vested benefit is only insignificant if it does not exceed the sum of the savings contributions for a whole year. The termination benefit is less than a full annual contribution.

The pension schemes may define the concept of insignificance in more detail in their regulations.