Is there legislation that may impact my withdrawal benefit when I change jobs?

Recent changes to legislation (i.e. the amended Regulations issued in terms of the Pension Funds Act) requires pension and provident funds to offer a default preservation option to members who leave their employers’ employment, In other words, the fund must allow members to leave their accumulated retirement savings in the fund and become a “paid-up” member.  

When you leave your employer, and the fund becomes aware thereof, the fund must make you a “paid-up” member until you instruct the fund to either payout or transfer the benefit due to you (or a combination of the two). 

The fund must give you a paid-up membership certificate within 2 calendar months of becoming aware that you are no longer employed by the participating employer.