Withdrawal Benefits
Understanding your rights and options upon Resignation, Dismissal, or Retrenchment.
1 Detailed Explanation
Normal withdrawal benefits are paid in terms of Rule 8 of the Fund Rules. When you cease working for your employer, you must complete a Termination of Membership Form (Withdrawal Claim Form).
The time to process and finalise the claim is strictly dependent on whether you have any outstanding queries with SARS.
The Administrator commits to processing claims between 4-6 weeks. This timeline begins after the 7th day of the last contribution month AND receipt of all documents.
If you leave without making an election, you automatically become a Paid-Up Member. Your benefit remains invested until you instruct the Fund otherwise.
Benefit Components on Exit
How your funds are distributed under the Two-Pot System.
Vested Pot
Pre-Sept 2024 Savings
- Receive FULL Vested Amount in cash.
- Receive FULL Non-Vested Amount in cash.
Savings Pot
Accessible Cash
- Receive the total balance in cash.
- Fees: R250 (Digital) or R350 (Manual).
Retirement Pot
Preserved Compulsory
- None of this pot can be accessed before retirement.
- Only cashed out when member reaches 55 years+.
Why this matters to you
Balancing current needs with future security.
Immediate Financial Bridge
Leaving a job is stressful. The Vested and Savings Pots provide crucial liquidity, acting as a financial bridge to help you meet immediate obligations while you transition to new employment.
Future Wealth Protection
The Retirement Pot ensures long-term security. By locking away two-thirds of new contributions until retirement, the Fund prevents old-age poverty and ensures a sustainable income later in life.
Flexibility with Responsibility
The Two-Pot system gives you autonomy over short-term needs through the Savings Pot, while the Retirement Pot structure enforces the discipline required for a prosperous future.
Withdrawal Tax Table (2025)
| Taxable Income | Tax Rate |
|---|---|
| R0 – R27 500 | 0% |
| R27 501 – R726 000 | 18% of amount > R27 500 |
| R726 001 – R1 089 000 | R125 730 + 27% > R726 000 |
| R1 089 001 + | R223 740 + 36% > R1 089 000 |
Note: Savings Pot withdrawals are taxed at your Marginal Tax Rate.
Divorce Orders
Non-member spouse is paid from Vested, Savings AND Retirement Pots.
Spouse paid from all components. Benefits from all pots are fully accessible.
Benefit Counsellors
Summary of Entitlements
Vested Pot Access
You retain the right to withdraw the full value of your savings accumulated before 1 Sept 2024. This respects your vested rights.
Savings Pot Liquidity
You have access to one-third of your new contributions. This pot is designed to be accessible for emergencies without penalties.
Tax Efficiency
The first R27,500 of your Vested Pot withdrawal is tax-free, providing a tax-efficient way to access smaller amounts.