Preservation Fund

Withdrawals

Pre-retirement withdrawals (subject to tax):

A Member will not have access to the benefits prior to reaching 55 years of age, except in the following circumstances:

• From the Savings Component (in part or in full) once each tax year, minimum R2,000 per withdrawal. If the entire Savings Component is withdrawn there will be no balance to withdraw in the next tax year or at retirement.
• Only one withdrawal (in part or in full) is permitted from the Vested Component. This is subject to any restrictions or conditions stipulated by the Transferring Fund.
• On emigration, as recognised by the South African Reserve Bank, or Cessation of SA Residency (full withdrawal).
• Ill-health early retirement.

At Retirement (age 55 years and older):

Transfer your Retirement Annuity (at no cost and tax-free) to our living annuity (the Perpetual Annuity) to provide you with a monthly income.

Or alternatively, withdrawals (subject to tax) can be made as follows:

• Retirement Component: No withdrawals, 100% must be used to buy an annuity to give you an income in retirement. If the Retirement Component plus 2/3 of the Vested Component is R165,000 or less, then a full cash lump sum withdrawal is permitted.
• Savings Component: 100% lump sum withdrawal of any remaining balance is permitted.
• Vested Component:
• Pension: 1/3 cash lump sum withdrawal permitted. 2/3 must be used to buy an annuity to give you an income in retirement. If 2/3 of the fund's Vested Component plus the Retirement Component is R165,000 or less, then a full cash lump sum withdrawal is permitted.
• Provident: 100% cash lump sum withdrawal permitted. No requirement to buy an annuity

Tax

• Transfers: Transfers from your Pension, Provident, Preservation or Retirement Annuity fund are tax free. The tax deductions previously granted on contributions are preserved.
• Income: PAYE is deducted by Marriott from the annuity payments in accordance with prevailing income tax legislation.
• Dividend Withholdings Tax is not applicable.
• Capital: No Capital Gains Tax (CGT).

Death

You may nominate dependents and beneficiaries. Beneficiaries can elect to receive a lump sum (subject to tax legislation) or to transfer the investment to an annuity.