All in-service members who exit the EPPF before turning 55 years may choose to transfer their whole Pension Fund value into the EPPF’s Deferred Pension Scheme. Alternatively, the members can take a maximum of the tax-free amount (currently R25 000) in cash and defer the balance in the EPPF’s Deferred Pension Scheme
All in-service members who exit the EPPF before turning 55 years may choose to transfer their whole Pension Fund value into the EPPF’s Deferred Pension Scheme. Alternatively, the members can take a maximum of the tax-free amount (currently R25 000) in cash and defer the balance in the EPPF’s Deferred Pension Scheme
All in-service members who exit the EPPF may choose to leave a portion of their whole benefit in the EPPF’s Deferred Pension Scheme until retirement and become deferred pensioners of the EPPF.
Deferred pensioners may retire from the Deferred Pension Scheme and access their benefit from age 55 years and must retire from the Deferred Pension Scheme by age 65 years.
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You may retire from the Deferred Pension Scheme anytime from age 55 to 65 years.
No, unfortunately not. The South African Revenue Service prohibits continuing contributions by a person to an employer sponsored retirement scheme after the person is no longer employed by the employer. As soon as you leave the service, you are no longer an active member and contributions must cease.
If you are an in-service member and leave your employer, you may transfer your benefit to the EPPF Deferred Pension Scheme. This means that you leave your pension benefit in the EPPF until your retirement date. The Deferred Pension Scheme allows you to leave your benefit in the EPPF while it attracts interest and grows. You will be able to retire from the Deferred Pension Scheme and access your benefit from the age of 55 years. You must retire from the Deferred Pension Scheme by no later than the age of 65 years.
You have three options on deferment:
You may retire from the Deferred Pension Scheme anytime from the age of 55 years until 65 years. When you retire from the Deferred Pension Scheme you have the option to take up to one third of your benefit in cash. The balance must be used to provide you with a monthly pension from the EPPF. To begin drawing a pension from the Deferred Pension Scheme, you must complete an Application for Retirement Benefits Form. If you wish to receive your pension in a bank account outside South Africa, you must complete the International Banking, together with the Application for Application for Deferred Benefit Pension. Log in to your profile to download both forms. Please note that you cannot access your funds for any reason before the age of 55.
If a divorce order was issued after you have already withdrawn from the EPPF, there is no pension interest left in the EPPF to be paid in terms of the Divorce Order. Pension interest refers to a resignation benefit that a member would have been entitled to had he resigned on the date of divorce. Because you have already withdrawn, the fund no longer holds pension interest on your behalf. Pension interest become a pension benefit on withdrawal. Therefore, the EPPF will be unable to make any payment of pension interest as that would be acting in contravention of the rules of the EPPF and the Pension Funds Act of 1956, which prevent the Fund from making any deductions from a member’s benefit if such a deduction is not in accordance with the Pension Funds Act read together with the Divorce Act.
The non-member spouse can claim payment of his/her benefit in terms of the Divorce Order directly from the deferred pensioner.
If you are married at the time of retirement, your spouse will receive a monthly pension upon your demise. However, if you marry after retirement, your spouse will not qualify for a monthly pension.
No, once a decision is made its irreversible. Deferred members cannot access their funds for any reason before the age of 55.
For Retirement, Death and Severance Benefits tax rates, go the South African Revenue Services’ website: Retirement, Death and Severance Benefits tax rates, on www.sars.gov.za.
All in-service members who exit the EPPF may choose to leave a portion of their whole benefit in the EPPF’s Deferred Pension Scheme until retirement and become deferred pensioners of the EPPF.
Deferred pensioners may retire from the Deferred Pension Scheme and access their benefit up to the age of 65 (64 years and 11 months).
Withdrawal
An in-service member may, instead of taking a cash benefit, become a deferred pensioner and may be granted a benefit equal to the actuarial value, as determined by the actuary, in respect of completed service. All in-service members who exit the EPPF before turning 55 years may choose to transfer their whole Pension Fund value into the EPPF’s Deferred Pension Scheme. Alternatively, the members can take a maximum of the tax-free amount (currently R25 000) in cash and defer the balance in the EPPF’s Deferred Pension Scheme. Deferred Pensioners have an option of taking their deferred pension value as a 100% cash lump sum or transfer it to an approved fund of their choice. This option must be exercised before the Deferred Pensioner turns 65.
Retirement
A deferred pensioner may retire and take a pension at any time from age 55 but no later than age 65. The deferred pensioner may elect to receive a cash benefit not more than 1/3 of his/her total benefit. The balance shall be used to provide a monthly pension and will be calculated in accordance with the rules of the Fund.
Death before retirement from the Deferred Pension Scheme
If a deferred pensioner passes away before drawing a retirement from the Deferred Pension Scheme, the lump sum benefit in the scheme (transfer value, plus interest) will be allocated to his/her beneficiaries in terms of Section 37C of the Pension Funds Act. This means that the EPPF will conduct an investigation to verify whether the deferred pensioner had legal dependants (such as a spouse whom he/she married before deferring the benefit; minor children or adopted or posthumous children), or factual dependants (such as parents or a family member who is financially dependent on the deferred pensioner). The EPPF has up to 12 months to investigate and make a determination on the distribution of the benefit. If the deferred pensioner has no dependants, the benefit will be paid to the deferred pensioner’s estate. No further benefit will be payable from the EPPF.
Death after retirement from the Deferred Pension Scheme
If a deferred pensioner passes away after retiring from the Deferred Pension Scheme, the following benefits will be payable:
Plus
The surviving spouse must be a spouse whom the deferred pensioner married prior to retiring from the Deferred Pension Scheme. If the deferred pensioner married after beginning to receive a pension from the EPPF, the surviving spouse will not qualify to receive a pension upon the deferred pensioner’s passing.
If there is no surviving spouse, but there is an eligible child, the child will receive a pension equal to 60% of the deferred pensioner’s pension at the date of death. If there are two or more eligible children, the percentage will increase to 100%.
If a deferred pensioner passes away within 5 years of their commencement date then the pension that would have been payable over the first 5 years of the retirement shall be paid as a lumpsum in accordance to section 37C of the Act.
Submit your change of details to the EPPF in writing by post, email, or by logging onto your profile.
Log into your profile to download the Beneficiary Nomination Form. Please make sure that you complete the Deferred Pensioner Beneficiary Nomination Form in detail.
Counselling
All members exiting the Fund are required to meet with a Retirement Fund Consultant before their exit date for a Benefits Counselling session which is compulsory. This will provide them with the information they need to make an informed decision when retiring.
Retirement application
The member must complete the application form. This application form is used to process the pension as per the member’s instruction.
Documents
All documents requested on the application form must be provided to the Fund before the member’s retirement date. The documents that are required are as follows:
Calculation
The member’s final retirement calculation is done in accordance with the Fund rules.
Tax
The lumpsum benefit calculation is sent to SARS to confirm the tax deductible.
Cash Lumpsum
The member is paid the Nett cash lumpsum value after tax clearance.
Monthly Pension
The arrear monthly pension is then processed after approval of the member’s benefit lump sum. Once the arrear monthly pension has been approved, it will be sent through to the payroll department for payment.
Welcome letter
The member is sent a welcome letter providing them with their total fund credit value, lump sum benefits as per the member’s commutation option as well as their tax deduction (if applicable), monthly pension benefit and the tax certificate.
Pensioner card
The card is produced and posted to members which enables them to get discounts, this could be store or region specific.
Counselling
All members exiting the Fund are required to meet with a Retirement Fund Consultant upon their exit. This will provide them with the information they need to make an informed decision when withdrawing.
Withdrawal Application
The member with the help of an RFC must complete the claim form. This claim form is used to process the withdrawal benefit as per the member’s instruction. If previously divorced members are encouraged to submit their divorce documents to the Fund to prevent delays should the divorce be legally binding on the Fund.
Documents
All certified supporting documents requested on the application form must be provided to the Fund together with the claim form before the exit date.
Calculation
The member’s final withdrawal calculation is done in accordance with the Fund rules.
Tax
The withdrawal benefit is sent to SARS to confirm the tax deductible.
Cash Lump sum
The Nett cash lumpsum after the deduction of tax from the cash lumpsum is paid out. Members who elect to transfer/preserve their benefit have the payment made directly to the institution they selected.
Letter
A payment letter detailing the lumpsum, tax and nett amount paid and the member’s IRP5 certificate is posted to confirm that the claim has been finalised.
The Fund gets notified of the death by a family member.
The applicant needs to complete a death application form and provide the deceased’s tax number.
The member’s death lumpsum benefit is calculated and sent to SARS to confirm the tax deductible.
Once the tax is finalised the calculated death lump sum is referred to the Fund Benefit Investigations Team to perform the Section 37 C of the Pension Fund’s Act dependency investigation.
The Benefits Committee puts together a recommendation regarding the distribution of the lump sum death benefit for the Trustees to review and sign.
NB – the law allows this process to take place for about 12 months to ensure a proper investigation is done to identify beneficiaries.
The Fund is notified of the divorce by the non-member spouse (applicant).
The final divorce decree as granted by any court of law is sent to the Fund’s Legal team for their opinion on whether the divorce is legally binding on the Fund.
Legal department advises on how the divorce benefits should be calculated as stipulated on the final divorce order.
The Fund notifies the claimant of the outcome and sends the divorce application form (Form 3B) to the claimant for their completion.
The non-member spouse to submit the divorce application form together with an original certified copy of ID, marriage certificate, proof of bank account details and proof of SARS tax reference number.
The divorce application form together with the supporting documents are securely uploaded to the EPPF’s administration system.
The non-member spouse record is created for processing of the divorcer claim.
The non-member spouse divorce settlement calculation is done in accordance with the Fund rules.
The tax directive is requested from SARS.
Member is notified of the divorce claim and the impact on their pension benefit by email or telephone.
The nett amount after tax deduction is paid to the claimant bank’s account. If the claimant opted for their benefit to be transferred to an external fund, payment is made directly to the Fund and provide the Fund with poof of payment.
The non-member spouse payment letter and tax certificates is posted to the address provided.
If you are an in-service member and leave your employer, you may transfer your benefit to the EPPF Deferred Pension Scheme. This means that you leave your pension benefit in the EPPF until your retirement date. The Deferred Pension Scheme allows you to leave your benefit in the EPPF while it attracts interest and grows. You will be able to retire from the Deferred Pension Scheme and access your benefit. You must retire from the Deferred Pension Scheme by no later than the age of 65 years.
You have three options on deferment:
Defer the full value of your benefit in the Deferred Pension Scheme;
Take the maximum of the tax-free portion and transfer the balance to the Deferred Pension Scheme; or
In the case of a retrenchment, you may take a cash refund equal to your accumulated member contributions (less tax – taxed at the rate applicable on withdrawal) and transfer the balance to the Deferred Pension Scheme. This option is only applicable to members who are retrenched before reaching the age of 55.
No, unfortunately not. The South African Revenue Service prohibits continuing contributions by a person to an employer sponsored retirement scheme after the person is no longer employed by the employer. As soon as you leave the service, you are no longer an active member and contributions must cease.
You may withdraw or retire from the Deferred Pension Scheme.
If you elect to withdraw you can only do that before the age of 65.
If you did not withdraw before age 55 then you may retire between the ages of 55 and 65. You can elect to start your pension anytime between the ages of 55 but no later than 65.
To begin drawing a pension from the Deferred Pension Scheme, you must complete an Application for Retirement Benefits Form and to withdraw you must complete an Application for Deferred Benefit Withdrawal Form. If you wish to receive your pension in a bank account outside South Africa, you must complete the International Banking, together with the Application for Application for Deferred Benefit Pension. Log in to your profile to download both forms.
To change your banking details when you relocate to another country, you must submit the following documentation to us:
Original, certified copy of your identity document or passport
An original, completed, International Banking Form (IBF). The IBF must be completed by the bank to which you want to transfer your benefit, or by your foreign exchange service provider.
Log in to your profile to download the IBF.
Remember to also advise us of your change in address. Click here to update your address and other contact information.
The surviving spouse must be a spouse whom the deferred pensioner married prior to retiring from the Deferred Pension Scheme. If the deferred pensioner married after beginning to receive a pension from the EPPF, the surviving spouse will not qualify to receive a pension upon the deferred pensioner’s passing.
If there is no surviving spouse, but there is an eligible child, the child will receive a pension equal to 60% of the deferred pensioner’s pension at the date of death. If there are two or more eligible children, the percentage will increase to 100%.
Yes you may, provided you submit your application before the age of 65.
Tax payable on retirement; withdrawal; and death benefits is determined by the South African Revenue Services (SARS). For more information, visit the SARS website on www.sars.gov.za.