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Does a provident fund form part of the estate of a deceased member?

You have two problems. Firstly, an affidavit is not the same as a will, and unless it complies with the requirements of a legal will, it will not be seen as such.

When can employees access their pension/provident fund?

The minimum retirement age of 55 (for reasons other than ill health) is defined by the Income Tax Act. There is no maximum retirement age.

How do I claim my provident fund upon resignation?

You need to get hold of a withdrawal notification form from your HR department, complete this and return with required supporting documents to your HR department, who will counter-sign and forward to the fund administrator for processing.

What is the pension fund pay-out timeframe after dismissal or retrenchment?

Provided your tax affairs are in order, and you have submitted all the required documents (such as a copy of your ID, a completed instruction form stating where the money should go, and proof of banking details), it normally takes 14 to 21 business days

What happens in the event of a member’s death?

In line with section 37 of the Pension Funds Act, the trustees of the retirement fund will distribute the proceeds, considering first the needs of your dependants and then the beneficiaries listed in your nomination form.

Can I make a lump sum withdrawal from my living annuity?

No, you cannot. Once the money has been committed to the living annuity, it can only be paid out under living annuity rules.

Can financial advisors charge a fee for transferring a preservation fund?

There are two things to consider. Firstly, financial advisor fees are subject to negotiation (between you and the advisor). Secondly, some service providers (mainly the insurance companies) require you to use a financial advisor.

Should I transfer to a preservation fund or a retirement annuity?

Both products are retirement funds for individuals, governed by the Pension Funds Act. A preservation fund is more flexible than a retirement annuity. With a retirement annuity you can only access the money from age 55.

Can I access the balance of my preservation fund before age 55?

A member is entitled to one full or partial withdrawal before retirement age. After that, the balance can only be accessed at retirement from age 55 onwards.

Is it legal to be penalised for reducing my retirement annuity premium?

Good practice no but legal and the industry standard, yes. If your retirement annuity is based on a policy (i.e most life insurance retirement annuities) then you are bound by the policy "terms and conditions".

What happens to my retirement annuity if I get divorced?

The divorce decree/settlement determines how the marital assets are divided, and it will have to make specific mention of the retirement annuity.

Can I use my retirement fund as security for a loan?

The short answer is no. In terms of the Pension Funds Act, you are not allowed to pledge or cede your retirement fund, or use it as security for a loan (other than a housing-related loan, if the fund rules provide for this).

Can I borrow money from my Sanlam Provident Fund?

ou can only borrow money from your Sanlam Provident fund if your Fund rules permit this and the loan is for a purpose as specified by the Pension Funds Act (ie housing related). Check with your HR department.

Do I get my money back if I cancel my Metropolitan RA?

You will only get your money back if the paid-up value of your Metropolitan RA is less than R7 000. Otherwise you must wait until your turn 55.

Can I open more than one TFSA?

Yes

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