Results 1 to 3 of 3

Thread: Retirement fund transfer

  1. #1
    New Member
    Join Date
    Apr 2013
    Thanked 0 Times in 0 Posts

    Retirement fund transfer

    I am 56 and was retrench. As I received an severance package and plan to do some consulting work, I want to delay my pension for at least 18 months or even longer if possible. The retirement fund decline my request to transfer my pension account to a preservation fund or a retirement annuity. They say as I am older than 55 I have to take a monthly pension income. Therefore the funds can only be transfer to a retirement instrument that gives me a pension income immediately and can not delay it.

    They quote me the following:
    Employees older than 55, will not be able to take all the money from the XXX Retirement Fund as a cash payment (like a resignation). The Pension Fund act prescribes that employees older than the age of 55, must go on pension (therefore receive a monthly pension) or that the pension credit been transferred into an external retirement instrument Annuity to be paid out as a monthly pension. In cases where the pension credit gets paid into an annuity or the pension gets paid as a monthly pension salary, the one third can be paid out, tax free until a maximum of R315,000.

    Are there any rules, regulation or act (pension fund or tax) that prevent me from preserving my pension beyond the age of 55?

  2. #2
    Site Caretaker Dave A's Avatar
    Join Date
    May 2006
    Durban, South Africa
    Thanked 2,475 Times in 2,079 Posts
    Blog Entries
    May I suggest you ask them for the applicable section of the Pension Funds Act.
    The trouble with opportunity is it normally comes dressed up as work.

    Alcocks Electrical Services | Alcocks Pest Control & Entomological Services

  3. #3
    Silver Member
    Join Date
    Jan 2012
    Thanked 53 Times in 40 Posts
    The only way they can impose that is if you have signed an employment contract that stipulates a retirement age, then you can legally be required to retire at that age. If you haven't signed such thing then they can't tell you when to retire and what to do with your money. What is the retirement age on the fund and what are the rules of the fund?
    ---There is no traffic at the extra mile---

Similar Threads

  1. Replies: 4
    Last Post: 17-Jul-14, 10:16 AM
  2. Claiming UIF on Retirement
    By *A* in forum Labour Relations and Legislation Forum
    Replies: 2
    Last Post: 14-Oct-13, 05:05 PM
  3. transfer pension fund to provident fund?
    By khozamtho in forum Tax Forum
    Replies: 5
    Last Post: 13-Apr-12, 06:02 PM
  4. Retirement
    By Martinco in forum General Chat Forum
    Replies: 12
    Last Post: 01-Sep-11, 01:29 PM
  5. Retirement age
    By manhav in forum Labour Relations and Legislation Forum
    Replies: 9
    Last Post: 15-Mar-10, 01:28 PM

Tags for this Thread

Did you like this article? Share it with your favourite social network.

Did you like this article? Share it with your favourite social network.

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts