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.
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
- 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 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.