Withdrawal benefit - Resignation/Dismissal
When you leave your employer, the Fund pays your Member Credit Account out to you. Your Member Credit Account is a sum that represents the total contributions made on your behalf, together with the investment returns achieved, less Fund expenses.
The following applies for each of category of your retirement savings:
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Vested pot: “OLD” savings up to 31 August 2024 |
Savings pot: “EMERGENCY” money – only for emergencies! |
Retirement pot: NO TOUCHING |
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You may withdraw a portion in cash. |
You may withdraw the full balance in cash. |
This money must be used to purchase an annuity when you retire, unless the amount is less than R165 000, in which case you can take everything in cash.
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This benefit will be taxed in line with the tax table for retirement. |
This benefit will be taxed in line with the tax table for retirement. |
The annuity that you buy will be taxed as and when you receive your monthly pension income, in line with the tax tables for retirees.
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Note: If you were 55 or older on 1 March 2021 (i.e. you were born before 1 March 1966) and have been a member of the UNISARF since then, your options are slightly different, unless you opted into the Two-Pot System. If you have not opted into the Two-Pot System, the Vested Pot applies to you, and you may take a portion in cash, subject to tax in line with the tax table for retirement.
When withdrawing from the Fund, you have the following options:
Any portion of your benefit that you choose to take in cash will be taxed as follows:
| Lump sum Amount | Rate of Taxation |
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R0 – R27 500 |
0% |
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R27 501 – R726 000 |
18% of the amount above R27 500 |
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R726 001 – R1 089 000 |
R125 730 plus 27% of the amount above R726 000 |
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R1 089 001 and above |
R223 740 plus 36% of the amount above R1 089 000 |