L7
Withdrawal Benefits
| 7. | WITHDRAWAL BENEFITS | ||
| 7.1 | Termination of service |
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If a MEMBER's service with the EMPLOYER is terminated before the NORMAL
RETIREMENT DATE (whether voluntarily by the MEMBER or as a result of
retrenchment, redundancy, dismissal, leaving the INDUSTRY or any other
reason), and he/she is then not entitled to retirement benefits from the
FUND, he/she may choose in writing in the prescribed format that the whole
or a portion of the MEMBER SHARE be paid to him/her as a lump sum cash
benefit. The portion not so paid will be transferred for his/her benefit to another retirement fund selected by him/her and approved by the FUND for this purpose, subject to the provisions of RULES 7.2(2) and 7.2(3). |
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| 7.2 | Special limitations on the options |
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| 7.2.1 | If the MEMBER does not advise the FUND of his/her choice between the cash and transfer benefit in writing in the prescribed format within three months of his/her termination of service, he/she is deemed to have chosen the cash benefit. | ||
| 7.2.2 | No transfer
may be effected to a preservation fund, unless (a) the preservation fund is recognised as a PRESERVATION PROVIDENT FUND by the REVENUE AUTHORITIES; and (b) the MEMBER’s EMPLOYER participates as an employer in the preservation fund and started doing so prior to the termination of his/her service with the EMPLOYER. |
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| 7.2.3 | If a MEMBER
elects a transfer to a preservation fund, he/she may not take any cash
benefit and must transfer to the preservation fund his/her full transfer
benefit, less (a) any transfer to a fund approved by the REVENUE AUTHORITIES as a retirement annuity fund; and (b) any deduction in terms of RULE 12.6 |
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| 7.2.4 | A MEMBER may
not exercise the withdrawal option provided by the preservation fund if - (a) before transfer to the preservation fund, a deduction is made from the MEMBER's benefit in terms of RULE 12.6; or (b) part of the MEMBER’s interest in the FUND accrues to the MEMBER’s former spouse in terms of section 7(8) of the Divorce Act, 1979. |
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| 7.3 | Benefits retained in the fund |
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| The BOARD may allow a MEMBER to whom Rule 7.1 applies to retain the benefit in terms of Rule 7.1 in the FUND. In such case, the MEMBER shall become a DEFERRED BENEFICIARY and the following provisions shall apply: | |||
| (a) | the benefit retained in terms of this Rule shall be increased or decreased by investment returns as earned by the investment portfolio in respect of the Member’s Benefit, from the date of conversion to the Maturity Date; | ||
| (b) | no further contributions shall be payable by or on behalf of the DEFERRED BENEFICIARY on or after the date of his/her termination of service; | ||
| (c) | the DEFERRED BENEFICIARY shall become entitled to a benefit on his/her retirement in accordance with the provisions of Rule 5.1, or it shall become payable to his/her beneficiaries in terms of Section 37C of the ACT if he/she dies before retiring; | ||
| (d) | the DEFERRED BENEFICIARY shall not be entitled to benefits other than those provided in terms of this Rule 7.3; and | ||
| (e) | if the DEFERRED BENEFICIARY returns to the service of the EMPLOYER: | ||
| (i) | he/she shall cease to be regarded as a DEFERRED BENEFICIARY; | ||
| (ii) | the benefit referred to in Rule 5.1 shall be reinstated under his FUND CREDIT; and | ||
| (iii) | the RULES of the FUND shall, mutatis mutandis, apply to him/her with effect from that date. | ||
| 7.4 | Interest on late transfers |
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| If the benefit to be transferred in terms of this Part is not transferred by the FUND within the period determined in terms of section 13A of the ACT, interest will be added to the value of that benefit as at the date of termination of service at a rate equal to the greater of the rate prescribed in terms of that section and FUND INTEREST. | |||