OLD MUTUAL SUPERFUND

WITHDRAWAL GUIDE

CORPORATE
DO GREAT THINGS EVERY DAY
YOUR OLD MUTUAL
SUPERFUND OPTIONS
when leaving your employer due to
resignation, retrenchment or dismissal

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AS AN OLD MUTUAL SUPERFUND MEMBER, YOU HAVE A NUMBER OF OPTIONS IF YOU
RESIGN, ARE RETRENCHED OR DISMISSED FROM YOUR CURRENT EMPLOYER.
This guide is intended to help you:
1. Understand your retirement savings options.
2. Complete the processes and paperwork.
3. Make the right decisions.
4. Review your death, disability, funeral and medical cover.

FOR FREE GUIDENANCE, speak to an Old Mutual SuperFund Retirement Benefits Counsellor (RBC) or call Old Mutual
Member Support Services on 0860 388 873 - who will answer any questions you have about the options available to
you and help you to reach a decision. This RBC will not, however, give you advice on what option you should choose.
Alternatively, speak to your financial adviser.

For more information on what Old Mutual SuperFund has to offer, visit www.oldmutual.co.za/superfund or phone the
Old Mutual SuperFund service centre at 0860 20 30 40.

NOTE:
1. The purpose of this Withdrawal Guide is to give information only.
2. This Withdrawal Guide has been prepared based on legislation and the Rules of the Old Mutual SuperFund Pension and
Provident Funds.
3. Every effort has been made to ensure the information in your Withdrawal Guide is correct. However, should any error have
been made, the Rules of the two Funds will apply.
4. You are encouraged to read the Rules of the Old Mutual SuperFund. You can obtain these from your employer or by phoning the
Old Mutual SuperFund service centre at 0860 20 30 40 or [email protected].

Remember: Your rights as a member of the Fund are contained in the Fund Rules.

YOUR OLD MUTUAL

SUPERFUND RETIREMENT SAVINGS

As an Old Mutual SuperFund member, when you resign or are retrenched or dismissed from your job, your fund membership
automatically continues even though you are no longer with your employer. This means that your retirement savings will
remain invested and can continue to grow.

If you prefer not to stay with Old Mutual SuperFund, you can cancel your membership and transfer your retirement savings
to another fund and/or take the money in cash.

Given that the amount in your retirement fund has been built up over many years, and it plays an important role in how well
you can retire, it is vital that you make the right decision.

Let’s take a closer look at your three retirement savings options:

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OPTION 1
STAY AN OLD MUTUAL SUPERFUND MEMBER

Old Mutual SuperFund provides you with an innovative way of keeping your retirement savings invested, protected and
growing – without having to pay any tax. It does this by letting you become a Preserver member.

There are many benefits to becoming a Preserver member.

• Helps your retirement planning to stay on track – since your retirement savings will stay invested, while allowing you
investment choice and flexibility.
• You keep your options open – although you should do everything you can to keep your retirement savings intact, we
understand that sometimes you need access to cash. Should the need arise; you can withdraw your retirement savings in
cash. Or you can transfer your retirement savings to another retirement fund.
• You have the time and flexibility to make good choices – since your retirement savings have the ability to continue growing,
you can take time deciding what to do with them. This also gives you the time to speak to a financial adviser if you need to.
• Best of all – this option is incredibly simple to activate – no forms, no fuss! The most important thing when choosing
this option is to ensure that Old Mutual SuperFund has your latest contact details on record. Give these to your payroll
administrator or phone the Old Mutual SuperFund service centre at 0860 20 30 40.

NOTE: THE FOLLOWING IMPORTANT INFORMATION ABOUT PRESERVER MEMBERSHIP

1. Preserver membership is only available to members of Old Mutual SuperFund Pension and Provident Funds.
2. Retrenched
members get a tax break when they choose a cash withdrawal instead of becoming a Preserver member.
For more information, call the Old Mutual SuperFund service centre at 0860 20 30 40.
3. Old Mutual SuperFund members cannot partly withdraw cash and invest the rest of their retirement savings into
Preserver. There are also no part withdrawals allowed once invested in Preserver. A member must either invest all their
retirement savings or withdraw all.
4. Even though Preserver membership offers you lots of investment choice, it does not include all of the investment
portfolios offered under the Old Mutual SuperFund Customised option.
5. If you were invested in the Old Mutual SuperFund Customised option, you will remain in the investment portfolio(s)
that you were invested in when transferring to Preserver. Should you elect to switch out, only the standard Preserver
portfolios will be available to you. Once you have elected to switch out, you will not be able to switch back into the
investment portfolio(s) that you were invested in under the Old Mutual SuperFund Customised option.
6. There is no minimum amount for investing in Preserver.
7. Members with R30 000 or less in their Old Mutual SuperFund account: We recommend that you invest in the Trustee
Choice investment package as this will keep fees to a minimum. This will protect you against the risk that fees reduce
your investment growth over time.
8. Please note that the investment portfolios as well as the investment and administration fees could be different from
your current structure. For details regarding the investment portfolios and fee structures, please contact the service
centre or access the Investment Portfolio and Fees list at www.oldmutual.co.za/superfund/investment-funds.

Activating your Preserver membership is easy – no forms, no fuss!

Here’s how:
1. Tell your payroll administrator that you are choosing Preserver membership and make sure that your current contact
details are sent to Old Mutual SuperFund.

2. Or, after you have left the service of your employer you can contact the Old Mutual SuperFund service centre directly at
0860 20 30 40 and let them know you want to be a Preserver member.

To find out more about Old Mutual Preserver membership visit www.oldmutual.co.za/preserver or contact the
Old Mutual SuperFund service centre at 0860 20 30 40.

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OPTION 2
MOVE YOUR RETIREMENT SAVINGS TO ANOTHER FUND

You can also keep your retirement savings invested by transferring the full amount to another retirement fund1, like:
• a preservation fund;
• a retirement annuity fund; or
• your new employer’s fund.

Remember transfers to other retirement funds are tax free.

If you want information about Old Mutual preservation and retirement annuity funds, phone Member Support Services at
0860 38 88 73.

What you must do to transfer to another retirement fund:

1. Complete the Old Mutual SuperFund Benefit Reinvestment Form. Download it at www.oldmutual.co.za/superfundforms
or request it from the Old Mutual SuperFund service centre at 0860 20 30 40.

2. Then complete the relevant application form for the new fund you have selected.

3. Attach a certified copy of your identity document (or passport if you are not a South African citizen), and ensure that you
provide all required data on the application form.

4. Give all these to your payroll administrator within 60 days of leaving your employer, or call the Old Mutual SuperFund
service centre at 0860 20 30 40.

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Subject to legislation and the rules of the receiving fund, at the time of transfer.

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OPTION 3
WITHDRAW SOME, OR ALL, OF YOUR RETIREMENT SAVINGS IN CASH (and transfer the
balance, if any, to another retirement fund)

Your final option is to take some, or all, of your retirement savings in cash. But beware of the risks! Any cash you withdraw
could be taxed. What’s more, by not keeping your retirement savings invested, you lose out on all the extra growth you could
enjoy. You will also have to start saving for your retirement all over again – which means you will need to put a lot more
money aside every month from now on!

Think about the impact

You need to think carefully before taking cash, as it could have a serious impact on your chances of enjoying a comfortable
retirement one day.

Old Mutual SuperFund recommends that you do your utmost to invest your retirement savings rather than taking it in cash.
After all, this money was saved up to help you enjoy your retirement.

If you have to take some as cash, try to withdraw as little as possible and transfer the balance of your retirement savings to
another retirement fund, so that it keeps growing for your retirement.

What tax will you have to pay?

The tax you will pay depends on your reason for leaving your employer.

The tax tables are as follows for withdrawal benefits:

REASON FOR LEAVING EMPLOYMENT

Resigned or Dismissed Retrenched

Benefit amount 1
Rate of tax Benefit amount
1
Rate of tax

R0 - R25 000 0% R0 - R500 000 0%

R25 001 - R660 000 18% of taxable income R500 001 - R700 000 18% of taxable income
above R25 000 above R500 000

R660 001 - R990 000 R114 300 + 27% of taxable R700 001 - R1 050 000 R36 000 + 27% of taxable
income above R660 000 income above R700 000

R990 001 + R203 400 + 36% of taxable R1 050 001 + R130 500 + 36% of taxable
income above R990 000 income above R1 050 000

1.
Benefit Amount means:
• the benefit that is currently being paid to you, plus
• the following amounts that have previously been paid to you:
- all retirement and retrenchment benefits received by you as from 01/10/2007, plus
- all other withdrawal benefits paid in cash to you as from 01/03/2009, plus
- all retrenchment amounts paid to you by any employer as from 01/03/2011.

Remember:
Every time you withdraw cash from a retirement fund, it adds up. So the amount of tax you pay each time will probably
increase. Withdrawals you make now will also reduce your total tax-free amount when you retire.

Of course, if you choose to preserve your retirement savings now, you will lose nothing to tax and all your savings will keep
on working hard for your retirement.

What to do if you want to take all, or some, of your retirement savings in cash:
1. Complete the Old Mutual SuperFund Benefit Reinvestment Form. You can download it at www.oldmutual.co.za/superfundforms
or get it from the Old Mutual SuperFund service centre at 0860 20 30 40.
2. If you are preserving part of your retirement savings, complete the relevant application form for the new fund you are
joining.
3. Make certified copies of your identity document and bank statement. Give all these documents to your payroll
administrator within 60 days of leaving your employer, or call the Old Mutual SuperFund service centre at 0860 20 30 40.

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WHAT HAPPENS IF YOU DON’T CHOOSE ANY OF THESE OPTIONS?
You will automatically become a Preserver member if you don’t inform Old Mutual SuperFund about your choice:
1. within 120 days of the date on which notification of your exit is received by Old Mutual or the period as published on the
Fund’s website, or
2. such shorter period as designated by your Employer if they are of the view they have no indication of your choice upon exit
and no means of making further contact with you.

THE BEST THING YOU CAN DO NOW IS…

call the Old Mutual SuperFund service centre at 0860 20 30 40 to tell them your choice and make sure
they have the right contact details for you.
If you become a Preserver member, Old Mutual SuperFund will be able to give you updates on your retirement savings in
the future and make sure you can easily claim your retirement benefit when you are ready to retire. Of course, as a Preserver
member you still keep all your options open. You can transfer your savings to another retirement fund1 or withdraw them in
cash at any time (even though you should always try to keep them invested).

What happens next?

When you become a Preserver member, you will be sent a letter explaining how Preserver membership works and
what you need to do next. If you do not receive your letter, please call the Old Mutual SuperFund service centre at
0860 20 30 40.

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Subject to legislation and the rules of the receiving fund, at the time of transfer.

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MAKE THE RIGHT DECISION
ABOUT YOUR OLD MUTUAL SUPERFUND RETIREMENT SAVINGS

Take a good look at all the information in this document, as well as the following table of options, to get a good idea of
everything you should think about when making the important decision about what to do with your retirement savings.
Then, make the right decision for you – and your future.

Remember, as a Preserver member you keep your options open, and you can make a decision at any time in the future –
whether it’s taking cash and/or going to another retirement fund1.

Getting financial advice is a good idea

Before you make a final decision about what to do with your retirement savings, it makes good sense to discuss your options
with a financial adviser. An adviser will help you make suitable decisions, taking your future retirement needs into account.
An adviser can also help you to make sure you have enough death, disability, funeral and medical cover going forward.

If you don’t have a financial adviser or broker, you can call the Old Mutual Member Support Services at 0860 38 88 73 for
help.

1
Subject to legislation and the rules of the receiving fund, at the time of transfer.

HOW WILL THIS AFFECT ME IN THE FUTURE?

Move to Old Mutual Move to a Move to a Move to your new Take a cash
SuperFund Preserver Preservation Fund Retirement Annuity employer’s fund withdrawal

Who qualifies All members All members All members All members All members

Minimum No minimum Minimum Minimum In most cases there No

investment investment investment investment is no minimum restriction
restriction restriction. restrictions apply. restrictions apply. amount restriction.
Exact amount will Exact amount will
differ per fund. differ per fund.

Will my benefit No No No No, unless you move Yes - see

be taxed? from Old Mutual the table
SuperFund Pension earlier in this
Fund to a Provident document.*
Fund.

Can I access You can access your One withdrawal is Withdrawals prior You can only N/A
my retirement full benefit at any allowed at any time to retirement or withdraw your
savings in the time in the future. in the future. After disability are not money if you leave
future? that, your savings allowed, unless your your new employer.
can’t be touched benefit is less than
until you retire or are R7 000 or you’ve
disabled. emigrated from SA.

Can I keep No No Yes Yes N/A

making
contributions
in the future?

Administration Charged according to Refer to your new Refer to your new Refer to your new N/A
fees investment package. fund’s marketing fund’s marketing fund’s marketing
For the latest material. material. material.
administration fees,
please click here.

*For the purpose of application to the South African Revenue Service (SARS), the application will be for the balance in the Member Account at
the date of application. The investment return or interest added after the date of application to SARS will be reflected as income due to the
member and may be subject to taxation in the hands of the member.

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Move to Old Mutual Move to a Move to a Move to your new Take a cash
SuperFund Preserver Preservation Fund Retirement Annuity employer’s fund withdrawal

Retirement You can retire You can retire You can retire The rules of the N/A
Age anytime from age 55. anytime from age anytime from age fund and your
55. 55. employment
contract determine
your retirement
age.

What happens If your membership is Pension You can take a If your membership N/A
when I retire? in the Old Mutual Preservation Fund: maximum of 1/3 of is in a Pension
SuperFund Pension You can take a your full savings Fund, you can:
Fund, you can: maximum of 1/3 of amount in cash and 1. Transfer your
1. T
ransfer your your full savings the rest as a monthly retirement
retirement savings to amount in cash and income. If your full savings to a
a pension the rest as a savings amount is pension
preservation fund or monthly income. If R247 500 or less, you preservation fund
retirement annuity your full savings can take the entire or retirement
fund, or amount is R247 500 amount in cash. annuity fund, or
2. Y ou can take a or less, you can take 2. You can take a
maximum of 1/3 of the entire amount in maximum of 1/3
your full retirement cash. of your full
savings in cash and retirement
use the rest to Provident savings in cash
purchase a pension Preservation Fund: and use the rest
or monthly income. You can take as to purchase a
If your full savings much as you want in pension or
amount is R247 500 cash. monthly income.
or less, you can take If your full savings
the entire amount in amount is R247
cash 500 or less, you
If your membership is can take the
in the entire amount in
Old Mutual cash
SuperFund Provident If your membership
Fund, you can: is in a Provident
1. T
ransfer your Fund, you can:
retirement savings to 1. Transfer your
a pension/provident retirement
preservation fund or savings to a
retirement annuity pension/provident
fund, or preservation fund
2. Y ou can take as or retirement
much as you want in annuity fund, or
cash and use the 2. You can take as
balance, if any, to much as you
purchase a pension want in cash and
or monthly income use the balance,
if any, to
purchase a
pension or
monthly income

What happens Irrespective of your Irrespective of your Irrespective of your Your new employer N/A
if I become age, you are entitled age, you are entitled age, you are entitled will most likely offer
disabled to a retirement to a retirement to a retirement this – you need to
benefit - subject to benefit - subject to benefit - subject to check.
trustee approval. trustee approval. trustee approval.

What happens Your retirement Your retirement Your retirement Your retirement N/A
if I die? savings are paid to savings are paid to savings are paid to savings are paid to
your dependants your dependants your dependants your dependants
and/or nominees. and/or nominees. and/or nominees. and/or nominees.

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LET’S TALK ABOUT YOUR
DEATH, DISABILITY, FUNERAL AND MEDICAL COVER

If you are disabled, or you pass away, shortly after you leave your employer, you or your family should call Old Mutual
SuperFund service centre at 0860 20 30 40 to find out if you are still covered.

So what do you need to do next?

Old Mutual SuperFund recommends that you follow these three easy steps:
1. Ask your ex-employer’s HR department what cover you had and how much you were covered for. If you had cover through
Old Mutual SuperFund, you can also call Old Mutual Member Support Services at 0860 38 88 73 for this information.
2. Find out how much cover, if any, you will get from your new employer.
3. If you will have less cover than you had, you can make up the difference. You can do this by:
a. Speaking to a financial adviser - if you don’t have one, call Old Mutual Member Support Services at 0860 38 88 73.
b. Asking the Old Mutual Member Support Services about Old Mutual’s GREENLIGHT death, disability and funeral cover.
You might be able to convert your old cover to any of these with less medical underwriting than is normally required.

YOU NEED TO ACT FAST

If you can convert your old cover to GREENLIGHT cover, any special arrangement on medical underwriting will only
be available for 60 days from when you leave your employer. Make sure you find out about your options and make
your GREENLIGHT cover choices quickly by calling Old Mutual Member Support Services at 0860 38 88 73 as soon
as you can.

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FOR MORE INFORMATION AND ASSISTANCE
Visit www.oldmutual.co.za/superfund

Call 0860 38 88 73 or email [email protected] for help making decisions.

Call 0860 20 30 40 or email [email protected] for service related queries.

REGULATORY INFORMATION:
Old Mutual Corporate is a division of Old Mutual Life Assurance Company (South Africa) Limited, Jan Smuts Drive, Pinelands, 7405, South Africa. Registration no:
1999/004643/06. A licensed financial services provider authorised in terms of the Financial Advisery and Intermediary Services Act, 2002, to furnish advice and
render intermediary services with regard to long-term insurance and pension fund benefits, as well as providing intermediary services as a discretionary investment
manager. Please note that this license does not cover the marketing of this product by persons other than Old Mutual and its staff. Every effort has been made to
ensure that this document and the products referred to, meet the statutory and regulatory requirements, pertaining to the manner and format in which information
regarding financial products is presented. However, should you become aware of any breach of such statutory and regulatory requirements, please address the
matter in writing to: The Compliance Officer, Old Mutual Corporate, PO Box 728, Cape Town 8000, South Africa.
OMBDS 06.2020 C1808

Old Mutual Life Assurance Company (SA) Ltd is a licensed FSP.