OLD MUTUAL: Management Provident Fund Participant Options
To speak directly to a financial advisors, please phone one of our consultants:
OPTION A: Leave Policy Paid up.
The policy becomes paid up and remains with the trustees of the Old Mutual Flexi Provident Fund until called upon.
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:
- Cede to Provident Fund: policy benefit is ceded to the provident fund to which the employer already participates.
- Cede to a pension fund: policy benefit is ceded to the pension fund to which the employer already participates.
- Cede to Other RA Fund: policy benefit is ceded an external underwriter’s RA fund.
- Cede to SARAF (Sout African Retirement Annuity Fund) Fund: policy benefit is ceded to a Sanlam RA fund. This fund is underwritten by Old Mutual
- Cede to current participant: policy benefit is ceded to the participant. Policy is effectively converted onto a standard endowment policy.
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: