DON’T PANIC – YOUR PROVIDENT FUND MONEY IS PROTECTED
You may have heard that new tax/annuitisation changes will come into effect on 1 March 2016. You should not panic as your existing money in the Fund is protected.
If you are currently a member of the RFLIPF your existing fund credit in the Fund, and the future growth on this money, is protected by law and will continue to be paid as a cash lump sum when you retire.
Only new member and employer contributions made to the Fund after 1 March 2016, and the growth on these contributions will have to comply with the new legislation and (at least two thirds) will have to be used to buy a pension at retirement.
If your benefit at retirement is less than R 247 500 you will be able to take all of this money as a cash lump sum.
If you resign you may still take your entire benefit in cash (only the first R25 000 is tax free). This has not changed.
Look out for more information to follow.