FAQs

General Hertzog Bridge, Free State. Image: <a href='http://commons.wikimedia.org/wiki/File:General_Hertzog_Bridge_over_Orange_River_at_Aliwal_North.jpg'>Gregory David Harington</a>  General Hertzog Bridge, Free State. Image: Gregory David Harington

If I withdraw how long will it take for me to be paid?

The processing of your withdrawal starts once your final month's contribution is received along with a fully completed and signed withdrawal form. Provided your tax affairs are up to date and there is no hold up from SARS receiving your tax deduction directive, you should receive your payment within two weeks.

What should I do with my withdrawal benefit?

There are four options available to you when you change employment and withdraw from your current fund:

  1. You can take a cash withdrawal. After receiving a tax directive - a tax clearance from SARS - the net benefit is paid into your bank account.
  2. If you are moving to a new employer you have the option of transferring your benefit into the new employer's fund. There are various tax implications depending on whether you have a pension or a provident fund. Please contact your current administrator who will be able to clarify exactly what fund you are currently on.
  3. You can transfer your benefit into a preservation pension or preservation provident fund where it will continue to grow until you retire. Glassock & Associates offers both preservation pension and preservation provident funds with a range of investment choices. Provided you meet the minimum requirements, you can preserve your money with us.
  4. You can transfer your benefit into a retirement annuity. This option allows you to transfer a lump sum as  well as continuing to make monthly contributions. Glassock & Associates offers a number of retirement annuity options with a range of investment choices.

When I leave my current employment do my group life and disability cover cease?

Yes, but in many schemes there is a continuation option written into the rules of the scheme which allows you to convert your existing cover without further medical evidence to an individual policy. This must be done within a predefined time frame (normally 30 days from exit), so make sure you contact us early so that we can give you your particular scheme options.

What are my options on retirement from a provident fund?

Members who reach retirement age receive a higher tax free lump sum than on withdrawal (Refer to current tax tables for tax free amounts.)   It is still necessary to obtain a tax directive from SARS but in the case of a provident fund members can take their full fund credit after tax deductions as a lump sum.  If the member chooses to receive a monthly pension they can use their provident fund benefit to purchase a discretionary annuity.

What are my options on retirement from a pension fund?

Members who reach retirement age receive a higher tax-free lump sum than on withdrawal. (Refer to current tax tables for tax free amounts.) Pension fund members can take a maximum of one third of their fund credit as a lump sum (subject to tax). The balance must be used to purchase a compulsory annuity in order to receive a monthly pension. Please note that the full fund credit can be used to purchase the annuity, which will increase the amount that you receive monthly.

Can I borrow money from my pension or provident fund?

This depends on the fund rules. Certain funds allow you to use your pension fund as a guarantee against your withdrawal. This is only permitted in terms of the Pension Funds Act for loans used for housing. Any other reason for a loan is not allowed. Loans are normally limited to 60% of your fund credit and are only granted if a housing loan facility has been set up by your employer. The loan also has to be repaid before you reach retirement age. Contact your HR department to find out if your fund allows this type of guarantee, and to fill out the paperwork to apply for any loan.