Options available if you resign
Disclaimers
1. The following represents a summary of the Rules of the Fund. In the event of a conflict between this summary and the Fund Rules, the Fund Rules will apply. Click here to view our full disclaimer.
2: The information contained on this website does not constitute advice either by the Board of Trustees or its advisors. If you need more information on how you invest your resignation benefit you are strongly advised to seek professional advice.
This section describes the options you have when you resign or are dismissed or retrenched by the Fund.
The following options are available to you:
When you leave the Fund, you automatically become a “paid-up” member of the Fund – your full Member Share will remain in the Fund, earning the same net investment returns as you have previously received.
However, you can make the following choices, either immediately or at a later stage (all these options are discussed in detail further in the document):
- You can leave the full benefit in the Fund (and remain a paid-up member); OR
- You can transfer the full benefit to another retirement fund (an approved Preservation Pension Fund, Retirement Annuity Fund, or your new employer’s pension fund), immediately or at a later stage; OR
- You can take the full benefit in cash as a lump sum (though this will be subject to tax, and will reduce your ability to enjoy a financially comfortable retirement, and is generally not a good idea); OR
- You can choose a combination of part cash and part transfer to another Fund
Note: If you have a housing loan with the Fund, the loan balance will be deducted in full on becoming a paid-up member.
You are not entitled to any insured benefits i.e. life assurance cover, funeral cover, disability cover, etc.
You may not make any contribution as a paid-up member.
While you are a paid-up member of the Fund, a monthly charge will be deducted from your Fund Credit to help cover the costs of operating the Fund. Currently, this charge is R27, 70 per month, plus VAT.
The issues to consider in deciding what to do with your resignation benefit are quite complex. The next sections deals with these options in more detail.