Withdrawing From the Fund
When you leave the Fund (resign, you are retrenched, you abscond, end your contract or you are dismissed) you will receive your accumulated Fund savings (Fund Credit). From 1 September 2024 your Fund Credit is the total of the Vested, Savings and Retirement components.
When you leave the Fund, you must elect how the money from each component must be paid.
Paid-Up Members
If you neglect to make an election to have your benefit paid you will become a Paid-up member of the Fund. This means that your money will remain invested in the Fund and your Fund Credit will continue to grow until you decide to have the benefit paid.
What does it mean to be a Paid-up member?
- Your money will remain invested in the Fund (preserved in the Fund) until you choose to have the benefit paid to you;
- As a Paid-up member you will NOT make any contributions to the Fund;
- You will no longer be covered for death, disability or funeral benefits.
Please refer to the Withdrawal Benefit document below.
Payment Of Your Benefits
With the implementation of the Two-Pot system the following benefits will be paid when you leave the Fund before retirement. Members will need to make a decision on ALL three components as follows:
| Vested Component | Savings Component | Retirement Component |
|
Take part or full cash.
And/or
Preserve in-fund.
And/or Transfer to another retirement fund with other components. |
Take part or full cash, except if you’ve made a withdrawal from Savings component in the same tax year.
If the balance in the Savings pot is R 2,000 or less, a further withdrawal will be allowed.
Preserve in-fund, but must transfer if part of the cash was taken from Vested component. Transfer to another fund’s Savings component. |
Cannot take in cash before retirement.
Preserve in-fund.
And/or
Must transfer to another retirement fund. |
| Tax treatment per component: | ||
| Using withdrawal tax tables first R 27,500 is tax free | Via PAYE (Marginal rates) | A non-taxable event if transferred to another approved fund |
What members, who were 55 years and older on 1 March 2021, should know
If you were a member of the Fund before 1 March 2021 and you were 55 years or older on 1 March 2021 (now 59 and older) and you remained a member of the Fund, your benefits are protected and means that whether you resign or retire after 1 September 2024 you will always receive all your benefits in cash. You are exempted from the Two-Pot system and will only have a Vested component. Your contributions to the Fund after 1 September 2024 will continue to be invested in your Vested component.
Thereafter you cannot Opt-in to Two-Pot.
If you decide to Opt-in to the Two-Pot system you will receive the benefits as listed in the above table when you leave the Fund before retirement age.
Important to Note: Once you Opt-in to Two-Pot your decision is irrevocable and cannot be changed.
Please refer to the Withdrawal Benefit document below.
Register on the TSRF online portal
Members will receive a benefit statement annually that will show how the money in the Fund is growing and what their savings in the Fund (Fund Credit) amount to. Members may also register on the Benefit Counselling Tool, TSRF online portal. WhatsApp "Hi" to 087 240 7006 to register.
It is recommended that you read the Fund's Member Guide for more information and to see how to claim your benefit.
