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Withdrawal Benefits 

Members may only withdraw from the UCTRF when they leave employment. The withdrawal benefit is not affected by the reason for ending employment (such as resignation or dismissal), except that retirement tax rates apply if the member is retrenched. On withdrawal, members will receive the balance in their Retirement Savings Account.

In accordance with Section 37D of the Pension Funds Act certain amounts may be deducted from your Accumulated Retirement Savings before your benefit is paid.

These include:

•  Tax on the benefit

•  Outstanding housing loans where the member’s Accumulated Retirement Savings were used as surety

•  Arrear maintenance payments awarded via a court order

•  Amounts awarded to an ex-spouse via a Divorce Order which have not previously been paid to your ex-spouse.

•  Losses suffered by the employer as a result of fraud and theft by the employee, and in respect of which the member admitted liability in writing, or a judgement has been obtained against him/her.

For more information on the tax payable on withdrawal, resignation or dismissal, please see the Taxation of Benefits section.

What options do I have at withdrawal?

When you leave the UCTRF, you have the following options:

1. Leave your benefit in the UCTRF (Deferred Pensioners). In this case, you may leave your benefit in the UCTRF until you retire (from the age of 55 onwards) or until you elect one of the options set out in 2 to 6 below.
2. Take your money in cash (but beware of the tax payable)
3. Transfer your money to a new employer's Pension and / or Provident Fund
4. Transfer your money to a Retirement Annuity Fund
5. Transfer your money to a Preservation Fund
6. Elect to take a portion of your withdrawal benefit in cash, and transfer the balance to an approved pension or provident fund, approved retirement annuity fund or an approved preservation fund.

Please Note: The options may sound technical, but it’s not that complicated – click here to take a look at each of these.