MOMENTUM: Management Provident Fund Participant Options
To speak directly to a financial advisors, please phone one of our consultants:
OPTION A: Bulk Transfer of All Members to Another Approved Pension, Provident or Retirement Annuity Fund.
If AL the members of the fund agree to the transfer the following is possible: a bulk transfer (Section 14 transfer) of the policy benefit to another Approved Pension, provident or Retirement annuity fund.
In the event that all members do not unanimously agree to the bulk section 14 transfer a liquidation process is required which allows individual termination options as indicated under OPTION B
Note: a section 14 transfer refers to the transfer of a member’s benefit from one approved fund to another in terms of Section 14 of the Pension Funds Act, 1956.
OPTION B: Termination of employer participation according to individual choice.
If members do not agree to the bulk transfer the policy benefit must be transferred according to individual choice. The following individual options are available:
- Transfer to Provident Fund: a transfer is made to the provident fund to which the employer already participates.
- Transfer to a pension fund: a transfer to the pension fund to which the employer already participates.
- Transfer to Other RA Fund: a transfer to an external underwriter’s RA fund.
- Transfer to Other provident PRESERVATION Fund: a transfer to an external underwriter’s preservation fund.
OPTION C: Surrender the policy and take cash proceeds.
Policy proceeds are taken in cash. Cash will be transferred to the participant’s (employee) bank account after tax and fees have been deducted.
These options have various Financial and tax implications. It is highly recommended that you consult with a financial advisor before making a choice.
To speak directly to a financial advisors, please phone one of our consultants: