18 Jul What deductions get made from my pension fund withdrawal benefit when I leave a job?
Deductions can depend on whether the benefit is transferred to another retirement fund or paid out in cash.
The fund administrator must get a tax directive from SARS before any lump sum payment can be made. Any amount owing to SARS is then paid to them by the fund administrators.
Then, the fund may deduct any housing loan sureties, maintenance orders or unpaid divorce orders.
Any losses suffered by the employer due to theft, fraud, or misconduct by the employer may also be deducted.
The fund administrator may also deduct amounts that the fund has already paid or will pay on your behalf to contracted medical schemes or insurance premiums.
To safeguard your interests, there are several important and binding Acts and Regulations which legislate the way that Salt Employee Benefits and your Employer manage and process claims. When completing a claim document, ask your HR department to assist you to complete the forms correctly and answer your questions. We also have a client contact service to assist you further.