Withdrawal

A withdrawal benefit becomes payable when you leave the service of your employer, either due to resignation, retrenchment or dismissal, before you reach normal retirement age.

 

What benefit will I receive?

If you leave the Scheme, you will automatically become a Preserver member of the Scheme after 120 days, unless you actively elect another option. This is the Scheme’s Default Preservation strategy that is in line with the Default Regulations.

Preserver members don’t make contributions to the Fund and are not covered for death or disability benefits. You will remain invested in the same portfolio you were invested in when you were an active member, unless you make a selection from the available portfolios in the Fund.

 

Inter-school Transfers: Should you transfer to another School which participates in the ISASA Pension Scheme Part I, it is compulsory that the full value of your Accumulated Credit as at the date of transfer be transferred to the new School’s account. You will continue to enjoy unbroken membership in the Scheme.

Should you transfer to a school participating in Part I (Defined Benefit Scheme) of the Pension Scheme, your Accumulated Credit will be used to purchase past service.

 

Payment Options

If you decide to take your withdrawal benefit (and not to become a Paid-Up/Preserver member) you have 4 payment options:

  • You may transfer the benefit to a retirement annuity (RA)
  • You may transfer to a pension preservation fund
  • You may transfer the benefit to your new employer’s fund
  • You may take the benefit in cash and pay tax

After reaching early retirement age (within 10 years from normal retirement), but before normal retirement age, you have the option to resign instead of taking early retirement and to transfer your accumulated credit to a preservation fund.

 

Please remember

It will be wise to preserve your money until you retire. A cash withdrawal may seem attractive at this stage, but will influence your retirement plans negatively in the future. Tax affairs must be up to date at all times as any benefit pay-out due from the Scheme is subject to tax clearance from SARS.