OMEGS

Leaving Old Mutual

 

When you resign, are retrenched, or are dismissed from Old Mutual, you are entitled to receive your full Member Account Balance upon exiting the Fund.

The decision you make about what to do with your Member Account Balance is very important, as it can significantly affect your future financial position. You are encouraged to consider your options carefully and to seek financial advice where appropriate.

The information below explains your options, how the process works, and where to find more guidance. You can also read the SuperFund Withdrawal Guide for more details.

Options When Leaving Old Mutual

When you leave Old Mutual’s employment, you can choose from the following options:

  1. Remain a member of SuperFund by using the SuperFund Preserver option.
  2. Transfer your Member Account Balance to another approved fund or funds (often referred to as preserving your benefit).
  3. Take your Member Account Balance in cash, less tax.

In some cases, you may use a combination of options 2 and 3:

  • Part cash and part transfer is allowed if you transfer your Member Account Balance to an approved retirement annuity fund or to your new employer’s pension or provident fund.
  • Part cash and part transfer is also allowed if you transfer your Member Account Balance to a preservation fund, provided the cash portion is used only to settle prior claim deductions under Section 37D of the Pension Funds Act and/or to settle a divorce liability under the Divorce Amendment Act, 1989.

You may not take the tax-free amount in cash before transferring your benefit to a preservation fund.

For more information, see the section on Prior Claims below.

Members are encouraged to consult a financial adviser for assistance in choosing the most suitable option.

Important:
If your Member Account Balance is transferred on exit from OMEGS to a retirement annuity, a preservation fund, or your new employer’s pension fund, the transfer is tax-free. However, if you transfer your balance to your new employer’s provident fund, the amount will be taxed before the transfer.

Prior Claims Against Your Member Account Balance

In terms of Section 37A of the Pension Funds Act, no benefit may be reduced, transferred, ceded, pledged or attached, except as permitted by the Pension Funds Act, the Income Tax Act and the Divorce Amendment Act, 1989.

Under Section 37D of the Pension Funds Act, the Fund may make the following deductions from your benefit on exit:

  • Any amount for which the Fund or Old Mutual is liable under a guarantee for a housing loan granted to you (if applicable).
  • Compensation for damage caused to Old Mutual through theft, dishonesty, fraud or misconduct, where you have admitted liability in writing or where a court judgment has been obtained against you.

Process on Exit

If you are leaving Old Mutual, you must complete the relevant exit documentation in line with HR processes. These forms are available on the Old Mutual website.

If you want to use the SuperFund Preserver option, you can indicate this on your exit documents.

If you choose to transfer your benefit to another fund, include the following with your exit documents:

  • For transfers to an existing retirement annuity fund, provide the policy number in the space on the exit form.
  • For transfers to a preservation fund or a new retirement annuity policy, include a copy of the proposal form.

If you do not give any instructions regarding your Member Account Balance, it will automatically be moved to the SuperFund Preserver option after 120 days, subject to certain conditions.

Investment Note:
The investment choices in Preserver differ from those available to active OMEGS members. If you do not select a Preserver investment option when you transfer (or are defaulted), your funds will remain in your current OMEGS portfolio(s). You can switch investments at any time within the Preserver range, but once you switch out of an OMEGS portfolio, you cannot switch back.

Submitting Your Claim Through MyClaim

Old Mutual offers MyClaim, a digital claims platform that makes it easier to manage and track your withdrawal. Through MyClaim, you can:

  • Submit your withdrawal claim online without using paper forms.
  • Track the status of your claim in real time, from submission to payment.
  • Upload required documents securely and receive confirmation once they are processed.
  • Receive notifications on your claim’s progress, keeping you informed at every step.

Using MyClaim speeds up processing and reduces errors or delays. You can access it through the Old Mutual website or employee portal.

Other Useful Information

  • When you leave, you can convert your life assurance benefit into a policy in your own name without undergoing medical underwriting. This Life Assurance Conversion Benefit can be valuable, so it’s worth exploring further.