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Retirement Benefits

The NRD may be defined as midnight on the last day of the month during which the member attains the NRA. The NRA ranges from 55 to 65.

Early Retirement

A member may retire, on giving one month’s notice to his/her employer and with his/her employer’s consent and providing that it is not more than 10 years prior to the NRD - at midnight on the last day of the month during which the member attains his/her early retirement age.

Early Retirement: Ill Health

A member may apply to retire before the NRD due to ill health, provided that the employer is satisfied that as a result of the ill health he/she is incapable of performing the duties required for his/her occupation or post in which he/she was employed by the employer on the last day on which he/she is present at work.

Late (Deferred) Retirement

A member may, provided that it is permitted in terms of the special rules and with the consent of his/her employer, retire on the first day of any month that is after his/her normal retirement date. Contributions by and/or in respect of the member shall continue to be payable during continuous service beyond the normal retirement date.

What benefit is payable at retirement?

The amount available to provide a benefit on retirement will be equal to the full member accumulated credit at retirement.

Benefit payable at Retirement
Member of a Pension Fund Member of a Provident fund
  • You can take a maximum of one-third of the accumulated credit in cash and use the remainder to purchase a compulsory annuity from a registered insurer, OR
  • You can purchase a compulsory annuity from a registered insurer using the full accumulated credit.
  • You can take the full accumulated credit in cash, OR
  • You can take any portion of the accumulated credit in cash and use the remainder to purchase a compulsory annuity from a registered insurer, OR
  • You can purchase a compulsory annuity from a registered insurer using the full accumulated credit.

How are contributions and benefits taxed?

The decision whether to take a cash lump sum and, if so, how to use it should not be taken lightly, as you need to ensure that you provide for your financial security during retirement. It may be advisable to use some of the available cash lump sum to clear any debt you may still have (e.g. a housing loan.

Tax on Contributions and Benefits
Pension Fund Provident Fund

A pension benefit is provided on retirement, with a maximum of 1/3 cash benefit.

  • Employee contributions are tax deductible to a max of 7.5% of pensionable salary or
    R1 750 p.a.
  • On withdrawal R22 500 is tax-free
  • Additional voluntary contributions for employee are tax deductible to a max of
    R1 800 p.a.
  • A lump sum or pension benefit is provided on retirement.
  • Employee contributions are not tax deductible.
  • On withdrawal, R22 500 plus all previously disallowed contributions are tax-free.
  • Additional voluntary contributions are not tax deductible.

Note: The investment of your lump sum is a very important decision and we strongly urge you to speak to a qualified financial adviser about the best option for you.

What do I have to do in order to receive my retirement benefit?

Orion will be notified of members going on retirement via Data-i, or by submission of an original Retirement Benefit Claim form together with the necessary supporting documentation.

What if I don't claim my benefit?

Twenty four months after date of exit, your benefit is re-classified as an unclaimed benefit. Your benefit is transferred from the member account into the Unclaimed benefits Account. The assets in the Unclaimed Benefits Account are invested in the Trustee Declared Fund, and fund interest is added in line with the actuary's declaration. Expense fees are deducted from the account on a monthly basis. Tracing costs are recovered from your unclaimed benefit amount when the benefit is paid.

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