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What deductions will be made from my withdrawal benefit when I change jobs?

The fund may have to make one or more deductions from your benefit depending on whether it is transferred to another retirement fund or paid out in cash.

  • The fund must obtain a tax directive from SARS before any cash lump sum payment can be made. Any tax payable will be deducted from your cash lump sum benefit and paid to SARS by the fund.
  • Next, the fund may deduct and pay outstanding housing loan sureties, maintenance orders or unpaid divorce orders.
  • The fund may also deduct losses suffered by your employer as a result of any theft, fraud or misconduct on your part under certain circumstances.
  • SARS may recover any arrear taxes from your benefit payable by the fund. 
  • The fund may also deduct any amount the fund has paid (or will pay by arrangement), on your behalf, to a medical scheme or an insurance premium payable by you.

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