Government Employees Pension Law, 1996Schedule 1 : Rules of the Government Employees Pension Fund14A. Savings Withdrawal Benefit |
| 14A.1 | With effect from the vested date, a member who has savings service may make an irrevocable request, in writing, for one withdrawal from the savings component in every tax year of assessment for the value of a portion or the whole of the savings service equal to the actuarial interest as determined by the actuary, subject to the limitations that may be imposed by the Income Tax Act; |
| 14A.2 | Any such withdrawal will result in a reduction in the member’s saving service, as determined by the actuary; |
| 14A.3 | The value of the savings withdrawal benefit may not be less than the amount of R 2 000 or such amount as may be determined from time to time by legislation; |
| 14A.4 | The savings withdrawal benefit will be subject to tax and any applicable deductions as determined in terms of the Income Tax Act. |
| 14A.5 | Notwithstanding rule 14A.1 —: |
| (a) | If a member terminates membership with the Fund, in any tax year of assessment and such member has already made an irrevocable election to take a savings withdrawal benefit in that year of assessment and the remaining savings actuarial interest is lower than R2 000, such a member may be allowed a second withdrawal, as part of the exit benefit, equal to the balance of the savings actuarial interest. |
| (b) | Where a member terminates membership with the Fund, excluding by way of ill-health, retirement or death, and has made an irrevocable election to transfer their benefit to an approved retirement fund, in any tax year of assessment and such member in the same year of assessment has taken a savings withdrawal benefit and the member’s remaining savings actuarial interest is more than R2 000, such amount shall be transferred to a savings or retirement component in the transferee fund as permitted by the legislation. |
| (c) | Where a member’s membership with the Fund terminates other than for ill-health, retirement and death, and elects to receive a lump sum benefit, in any tax year of assessment and such a member in the same year of assessment has taken a savings withdrawal benefit and the member’s remaining savings actuarial interest is more than R2 000, the savings actuarial interest will be retained in the Fund in terms of rule 16.4. |
[Rule 14A inserted by section 7 of Notice No. 5191, GG51202, dated 10 September 2024]