27 Oct What you need to know
Pension Fund Withdrawal Payout.
A pension fund withdrawal payout can be a time of high expectations for members and beneficiaries which is quite understandable. On the surface, one might think that following the submission of documents, the payment is processed instantaneously. Not so. Legislated Acts and Regulations which protect the interests of the beneficiary and other par ties must be adhered to by Salt EB and any pension fund management company.
Here’s what you need to know:
- The fund administrator (i.e., Salt EB) may NOT process an incomplete or inaccurate form. Spending some time helping your employer to complete the form correctly could save weeks or even months of unnecessary anxiety, frustration and hardship.
- A claim cannot be processed until we get a tax directive from SARS. It follows that a combination of an incomplete form on top of get ting a tax directive can stretch the payout time.
- If the beneficiaries tax affairs are not in order, expect a further delay. The beneficiary may need to challenge the SARS claim and that can be a long and winding road.
- Should the beneficiary’s name completed on the withdrawal form differ from that indicated on Salt EB’s beneficiary nomination form, we simply cannot process the claim until it is cleared up. Simplistically, we now have two or more people laying claim to the same funds. Please stress the need for employees to update their beneficiary nomination forms.
- We must also check for divorce orders, maintenance orders or money owed to the employer as these can also be claims.
As South Africa’s biggest independent pension fund administrator, Salt EB ensures that it has the right people, streamlined processes and the latest technology in place not only to process the claim efficiently but also to comply with the stipulated Acts and Regulations needed to protect the member and beneficiary.