How to transfer your retirement savings

Important information

Under the Pension Funds Act, transferring your retirement funds from one fund to another is known by the term 'Section 14'.

The Financial Sector Conduct Authority (FSCA) allows for up to 180 days to complete the Section 14 transfer process. During this period, investment values may fluctuate with market performance. Transfers can also involve costs, so consider how these may affect your final amount.

You can move to another retirement product that meets your needs. There could be potential costs. Speak to your financial adviser, broker or contact us to explore the choices available to you.

For more information, see the FAQs below.

What you need to do

You will need the following documents:

• A request to transfer form signed by the member in the last 12 months. This can be emailed to: Section14@oldmutual.com
• Proof of new or existing Retirement Annuity being transferred to contain member’s key details (i.e., initials, surname, birth date or ID number) obtained in the last 12 months,
• Clear and enlarged copy of the member’s ID document/card, and
• An active tax reference number for the member (even if the member is a minor).

You will need to email all this information to Section14@oldmutual.com. Once a request is received, we will issue a Transfer of Interest form for the member to complete and sign. Once all requirements are met, a Form H prescribed by the FSCA (Financial Sector Conduct Authority) for Section 14 Transfers will be drafted for trustee approval acknowledging that the transfer of funds would be accepted by the Transferee Fund.

If you would simply like to change retirement products within the same company, this would entail a different process.

You can contact the respective teams below based on the product you have:

• Old Mutual Wealth or Unit Trusts: Wealthinstructions@oldmutual.com
• Employee Benefits: Proterenquiriescomplaints@oldmutual.com
• SuperFund: Superfund@oldmutual.com

A Section 14 transfer is a process regulated by the Pension Funds Act and refers to a transaction where the benefit held on behalf of a member of a Retirement Annuity fund is transferred from that Retirement Annuity fund to another Retirement Annuity fund either internally (within Old Mutual as the Fund Administrator) or externally (with another Fund Administrator).

Section 14 transfer into the SARAF:
Registration number 12/8/3904
SARS Approval number 18/20/4/0297/43
Rule number 4.2

Section 14 transfer out to another Fund:
Registration number 12/8/3904
SARS Approval number: 18/20/4/0297/43
Rule number: 7.2.2

Membership to the SARAF is gained by having one of the following products: FlexiPension, Conventional, Investment Horizons, Max Investments, Essential Savings, Group Schemes and our new Savings & Investments RA.

Transferring into the SARAF, we accept funds originating from Retirement Annuities, Pension, Provident and Preservation vehicles.

Transferring out of the SARAF, we accept only Retirement Annuity applications as per the SARAF fund rules.

Requests for a Section 14 Out to another Retirement Annuity fund must be emailed to section14@oldmutual.com only.

Transfers in from another Retirement Annuity fund must be sent to section14InSaraf@oldmutual.com

Emails containing password protected attachments for Section 14 transfers out must be sent to section14outsaraf@oldmutual.com.

Yes, the Section 14 Team needs to authenticate the request received ensuring that only authorised persons receive confidential customer information.

No

A debit order will be cancelled by the Section 14 transfers team at payment stage. The member may request the cancellation of a debit order any time during the Section 14 transfer process by emailing a signed letter specifying the debit order cancellation, 10 working days prior to the next deduction.

We don’t administer the following:

• Section 37 (50) or Directive 135 involving Living Annuities.
• Paid-Up quotes, Internal Rate of Return (IRR), Total Expense Ratio (TER), EAC and Statements
• Internal transfers: from one product in SARAF to another product in SARAF

For the above, please contact admin@oldmutual.com

• A letter of request signed by the member in the last 12 months,
• Proof of new or existing Retirement Annuity being transferred to contain member’s key details (i.e., initials, surname, birth date or ID number) obtained in the last 12 months,
• Clear and enlarged copy of the member’s ID document/card, and
• An active tax reference number for the member (even if the member is a minor)

Once a request is received, we will issue a Transfer of Interest form for the member to complete and sign. Once all requirements are met, a Form H prescribed by the FSCA (Financial Sector Conduct Authority) for Section 14 Transfers will be drafted for trustee approval acknowledging that the transfer of funds would be accepted by the Transferee Fund.

Please ask the member to sign the form in full at all 6 sections (including the tick boxes - Yes or No, where indicated) should the transfer proceed. The tick box selection above point 1 refers to which policy(ies) should be transferred and at point 4, whether a divorce order and agreement (in respect of a pension interest award) exists against any policy mentioned on the form.

A Section 14 Transfer of Interest form is valid if received within 6 months from the date of issue appearing on the form. If the form has expired, please request for a new Transfer of Interest form by emailing section14@oldmutual.com

Values quoted are for information purposes only and is subject to change due to market fluctuation.

With effect from 1 March 2023, a partial transfer of interest for a Retirement Annuity is allowed. Retirement fund members with more than one policy in a fund may transfer either one or more of their policies in the fund to another retirement annuity fund, subject to the following conditions:

The above change in legislation applies to portfolios valued more than R742 500 allowing a member the choice to transfer policies with a combined Section 14 value of at least R371 250 within their portfolio and leaving policies with a combined Section 14 value of at least R371 250 of their portfolio. Policies with different plans are considered as one and cannot be separated.

A Form H will be issued signed by the board of trustees of SARAF once all above requirements have been met. This form confirms the agreement and acceptance of monies between the transferor and transferee funds.

Once the signed Form H is returned to SARAF by the Transferee Fund, a nil tax directive is requested online from SARS in compliance with the Income Tax Act. Should SARS decline the request, the member/intermediary will receive an update for the taxpayer to visit SARS.

Should a successful nil tax directive be obtained from SARS, the transfer will reach its final step where payment is made to the Transferee fund. Once the funds have left the SARAF/Old Mutual, the Form J (proof of payment) will be issued with a copy of the nil tax directive.

Monies transferred between Funds is not taxable, as the proceeds of the transfer is not payable to the member.

The description on the IT3A certificate states: RAF lumpsum withdrawal (refer source codes of 3920 or 3699). SARS always issues nil tax directives for a Section 14.

Once the Form J (proof of payment) is issued to the Transferee Fund, the transfer is complete.

Last step is for the Transferee Fund to submit the online ROT (Recognition of Transfer) to SARS. The administration of the transfer will be completed as soon as the Receiving Fund returns the signed Form J approved by the Fund’s Principal Officer confirming funds had been received.

A Section 14 Transfer must be completed within the specified regulated timeframe as per the Pension Funds Act – i.e.,180 days from the date all requirements are met. Should outstanding requirements not be submitted within this timeframe, the transfer process needs to start afresh.