Withdrawal Benefit

What happens if I resign or am dismissed or retrenched from the company? 

At resignation, dismissal or retrenchment, a member of the Fund who is under normal retirement age has various options. Members are strongly encouraged to preserve (save) their Fund value.

By leaving your money with the Fund until retirement date, you become a Deferred Member. One of the benefits is that this option is not taxable. It will also help you to achieve financial security at retirement.
By transferring your money to your new company’s pension fund. One of the benefits is that this option is not taxable.

By transferring your money to your new company's provident fund. This benefit is taxable.
By transferring your money to an approved pension fund, your transfer is tax exempt; but when you transfer to a provident fund, you will be liable to pay tax.
By transferring to any approved Pension Preservation fund or Retirement Annuity. This option is not taxable.
Tax will be deducted from any cash amount that is paid to you.
See below for an explanation of the negative implications of taking a cash withdrawal.

There are two negative implications for taking your benefit as a cash withdrawal.

  1. By not preserving your benefit, you may not have built up enough capital when your retirement day comes.
  2. The tax-free portion of the lump sum you are able to take at retirement will be reduced if you take any withdrawal benefits as a cash lump sum during your working life. Any tax-free retrenchment packages you receive will also affect your tax-free portion.

The Tax Calculator will assist you to calculate the tax payable on lump sum withdrawals.
See the Taxation of Benefits section for more information on the tax payable.

How to apply for your benefit at resignation, dismissal or retrenchment 

Step One: Click play on the video below to learn more about the options available to you when you leave the fund.



Step Two: Complete the Benefit Option Form

Benefit Option Form

Step Three: Send the completed form together with: A copy of your Identity Document and your bank statement or proof of your bank account (not older than 3 months) by email to fuse@tfg.co.za 

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 Benefit 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)

As an example:  If your last day at work was the 5th of May, the Fund administrator can only start processing the claim after the month-end process has been completed, which will be on the 15th of June. This process then takes approximately 4 to 6 weeks to complete.


If you are reinstated by the Company within 3 months of your resignation, your benefit will not be payable. 

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