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 younger than normal retirement age has various options in relation to their Fund benefit. Members are strongly encouraged to preserve (save) their Fund benefit by either leaving it in the Fund (becoming a deferred member) or transferring. This will help you to achieve financial security at retirement. 

Accessing your Fund Values:


You will be able to view your own profile online and access your Fund Value on AF Connect.

If you have previously registered with AF Online, you may use your same log in detail for AF Connect.

What are my options at resignation, dismissal or retrenchment?

Your fund value is comprised of various pots and below are the options available per pot:

Vested Pot:

Savings Pot:

Retiement Pot:

You cannot withdraw money from your retirement pot.  Money in your retirement pot must be used to buy an annuity (monthly pension or living annuity) at retirement.

Additional Information

Click here for an explanation of terms and the definition of the pots.

Any amounts taken as a cash lump sum is subject to tax and any other tax owed to SARS will be deducted from the cash withdrawal.

It is recommended that employees consult with a financial advisor before making decisions regarding their retirement savings. 

What is the impact of taking your savings pot?

Here we illustrate the impact on your retirement benefit:

A blue squares with black textDescription automatically generated

*Assumed investment return / interest of 7% per annum

 Remember: Withdrawing retirement savings means you will miss out on earning more growth.

 

The Tax Calculator will assist you to calculate the tax payable on lump sum withdrawals.
How to apply for your Retirement Fund withdrawal benefit

Please review your benefit options indicated above as it is important to understand the options available to you.

TFG Retirement Fund uses our outsourced administrator  AlexForbes’ platform called “Digi Exits” to process claims.

Digi Exits is a self-service solution that enable employees to manage their fund withdrawal process personally and facilitates arranging retirement benefit counselling, as well as providing payment instructions

How does the process work?


Please ensure that your contact details, i.e. cell phone number and e-mail address are updated on People Connect.

Payment of the benefit will take approximately 4 to 6 weeks after the last of the following takes place:

 (The Fund’s month end refers to the process of the Fund administrator allocating the contributions and fund return to a member’s record for the month.) 



 

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

If the employee does not finalise their claim on Digi Exits within 30 days of receiving the email from Digi-exits, the employee will become a paid up member in the Fund.

Paid up members are still able to provide AlexForbes with payment instructions at a later stage indicating what they wish to do with their fund value and may contact the Fund administrator in this instance for guidance.

What if I want to keep all my money in the Fund - I don’t want to access it?

If you don’t want to access your money and keep it all in the fund, you do not have to do anything. Your money in the Fund will continue to grow with your contributions and investment returns.

 

 


Quick News

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TFG Retirement Fund

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