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?

A minimum benefit calculation as determined by the Pension Funds Act will be done by the Actuary to ensure that you don’t receive less than your full share of Fund. If you leave the Scheme, you will automatically become a Paid-Up 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 new Default Regulations. When you become Paid-Up you will be known as a Preserver member in terms of the Rules of the Fund. You will not be allowed to split funds, i.e. take a portion in cash and preserve the rest in the Fund. The split-funding is only available if you preserve outside the Fund. As an in-Fund Preserver member, you will also not be allowed to contribute monthly to the Fund and the insured benefits (death and disability ) will fall away.

Inter-school transfers

Should you resign from your school and take a position at another school that participates in the ISASA Pension Scheme and Provident Fund you remain a member of the Scheme and your fund credit will remain invested in the Scheme and will not be paid out to you. Only when you resign and find employment at a school that does not participate in the Scheme, will your fund credit be paid to you.

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

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.