Withdrawing

Withdrawing From the Fund

Withdrawing From the Fund

When you resign, abscond, are dismissed or retrenched from your employer and you decide to leave the transport sector - your total vested retirement fund savings/fund credit will be paid out to you as a lump sum.

If you take your benefit in cash, only the first R 25,000 is tax-free. The tax-free threshold of R 25,000 is cumulative and apply to the total amount of your withdrawals from funds in your lifetime.

REMEMBER!

Your total Fund credit/savings will be paid out to you as a lump sum should you exit the Fund and leave the transport sector industry.

Exiting the Fund can be due to the following reasons:

  • End of contract with employer
  • Resignation
  • Absconding
  • Dismissal
  • Other (Section 14 Transfer)

 

When you exit the Fund you can:

  • Transfer your benefit to your new employer’s Fund;
  • Transfer your benefit to a preservation or retirement annuity fund of your choice; or
  • Your fund savings can be paid as a cash payment into your bank account.
  • Defer the payment of your benefit and retain it in the Fund as a paid-up benefit.
Note:If you are moving to another company within the transport sector your membership will transfer to the new company and you will continue to be a member of the Fund and will continue to contribute to the Fund. Your retirement fund savings will therefore not be paid out.

 

Note on Retrenchment

If you are involuntarily retrenched, the exit is seen as a retirement from the Fund and the benefit is paid as a retirement benefit.

The first R 500,000 can be taken tax free.