General Information at Retirement

If you are planning to retire soon or even in the near future, you need all the pre-retirement knowledge possible to be able to make the right decisions about your options at retirement.

• Calculating your monthly pension:  Your pension will be based on your Fund Value, your age and marital status at the date of your retirement.  Remember, the earlier you retire, the longer your money has to last.  You and the company are then also contributing for a shorter period.

• Life Stage Portfolios:  If you are within 24 months from your actual retirement date and wish to avoid market volatility, you may consider moving your Fund Value to the Life Stage Portfolio.  More information about the Life Stage Investment Model is available here.  It is advisable that you consult a financial advisor before making a decision.

• Withdrawing your full Fund Value:  As per the Pension Funds Act, you may not withdraw more than one third of your Fund Value in cash on retirement.

• If you want to defer your retirement date:  At retirement from the Company, you have the option to become a Deferred Retiree, subject to certain conditions.  This means you will retire later and take a monthly pension at a later date.

• Tax:  All cash lump sum benefits payable on retirement are taxable when they exceed certain levels (currently R550 000).  Any cash lump sum (this includes Provident, Pension and Retirement Annuities) taken before retirement will reduce the tax-free amount at retirement.  A part or 100% of your entire vested benefit and up to one third of your non-vested benefit may be taken in cash.

• Year End Gift:  At retirement, you qualify for a pro-rated Year End Gift from the Company.  The Year End Gift will be based on the months worked up to your retirement.

• Staff Account:  Provided that you have 10 years service with the Company, you may keep your staff account and receive the discount that you were entitled to before retirement, after approval by the Staff Accounts Department.  Your credit limit will reduce by 50% when you retire.  Should you wish to have your credit limit increased, you may email staffaccounts@tfg.co.za and provide them with proof of your income.

• Medical Aid:  Subject to Company approval, employees going on retirement will continue to receive company subsidised membership of TFG Medical Aid Scheme where these members were employed with the Company on 1 January 1999.  If employees, who were employed with the Company on 1 January 1999, join the scheme after 1 September 2016, these employees must have at least 10 years continuous membership of TFG Medical Aid Scheme at the time of retirement to qualify for the Company subsidy.  Exceptions to the minimum period of membership will only be made if the employee can show compelling reasons why they have not been a member for at least 10 years at time of retirement.

• Pensioner's Card:  When you become a TFG Retirement Fund pensioner, you will receive a pensioner's card.  This benefit is not applicable to Deferred Retirees or members who transfer to another Fund or Insurer.

• Your first monthly payment:  Your first monthly pension from the Fund will be paid at the end of the month following your retirement.  

• Your lump sum payment: Payment of the benefit will be approximately 4 to 6 weeks after the last of the following takes place:
  • The Fund’s month end has been completed.
  • HR Termination received by the Fund.
  • Completed Retirement Option Form (signed by the member) received by the Fund, which must include:
  • Copy of Identity Document
  • Bank Statement or proof of bank account (not older than 3 months)
  • Marriage certificate and spouse’s copy of Identity Document (if applicable)

• Proof of Existence Forms:  As a TFG Pensioner you will receive a Proof of Existence Form annually.  Your pension will be suspended if we do not receive the duly completed form back.

• Annual Increases:  TFG Pensioners receive annual increases depending on the performance of the Fund.

• Guarantee:  As a TFG Pensioners you will receive your pension for life.  If you pass away within five years from date of retirement, your spouse (to whom you were married at retirement date) will continue to receive your full monthly pension until expiry of the five years where after the pension will reduce to 75%.  The spouse's pension is also payable for life.  The rules further provide for a capital guarantee, i.e. any positive difference between your Fund Value at date of retirement and amounts paid out to you or your spouse, which ever happens last.

• Funeral and Death Benefit:  The funeral and death benefits that you qualify for as an active member will stop at retirement or resignation, as per the insurance policy and rules.  A post retirement death benefit of R5 000 is payable upon your death as a pensioner.  No funeral benefit will be payable upon the death of your spouse or children.

• Questions:  Communicate your question by logging a ticket on synergy.tfg.co.za