Leaving Old Mutual
- If you resign, are retrenched or dismissed from Old Mutual’s employment, you are entitled to receive your full Member Account Balance when you exit the Fund.
- The choice you make about what to do with your Member Account Balance is VERY important – it can have a huge impact on your future financial situation. We encourage members to consider their options carefully, and to obtain financial advice if appropriate.
- The detail below explains your options and how the process works.
- You can also read more in the SuperFund Withdrawal Guide.
Options on leaving Old Mutual’s employment
When you leave Old Mutual’s employment, you have the following options available to you:
- Remain a member of SuperFund, by utilising the SuperFund Preserver option.
- Transfer your Member Account Balance to another approved fund or funds (often called preserving your benefit); or
- Take your Member Account Balance in cash, less tax.
You also have the option of a combination of options (2) and (3) under certain circumstances:
- Part cash/part transfer is allowed if you elect to transfer your Member Account Balance to an approved retirement annuity fund or to your new employer’s pension or provident fund.
- Part cash/part transfer is allowed, if you elect to transfer your Member Account Balance to a preservation fund, provided the cash portion is only to be used to settle any prior claim deduction in terms of Section 37D of the Pension Funds Act and/or to settle a divorce liability in terms of the Divorce Amendment Act, 1989. Please refer to the section below for further information regarding prior claims. You may not receive the tax-free amount in cash prior to transferring your benefit to a preservation fund.
Members should contact a financial advisor if they require assistance in deciding which option to choose.
Please note: If a member transfers their Member Account Balance on exit from OMEGS to their new Employer’s pension fund, a retirement annuity or to a preservation fund, their total benefit on exit from OMEGS will be transferred tax-free. However, if they transfer their Member Account Balance to their new employer’s provident fund, the benefit will be taxable prior to transfer.
Prior claims against your Member Account Balance
- In terms of Section 37A of the Pension Funds Act, no benefit provided for in the Rules of a registered Fund, or right to such benefit, may be reduced, transferred, ceded, pledged or be attached in terms of a court order except as permitted by Pension Funds Act, the Income Tax Act and the Divorce Amendment Act, 1989.
- In terms of Section 37D of the Pension Funds Act, the Fund may make the following deductions from your benefit on exit from the Fund:
- Any amount for which the Fund/Old Mutual is liable under a guarantee furnished in respect of a housing loan granted to a member (if applicable).
- Compensation in respect of any damage caused to Old Mutual as a result of theft, dishonesty, fraud or misconduct by the member and in respect of which the member has admitted liability in writing to Old Mutual or where judgement has been obtained against the member in any court of law.
Process on exit
- If you are leaving Old Mutual, you must complete certain documentation in line with Old Mutual’s HR processes. Please see the relevant documentation on Oldmutual.me.
- If you want your benefit to be moved into the SuperFund Preserver option, you can indicate this on the exit documentation.
- If you choose to preserve your benefit in another fund (i.e. transfer it to another fund), you need to provide the following together with your exit documentation:
- If you want to transfer your Member Account Balance to an existing retirement annuity fund, you need to indicate the policy number in the space provided on the exit documentation.
- If you want to transfer your Fund benefit to a preservation fund or a new retirement annuity fund policy, then a copy of the proposal form must accompany the exit documentation.
- If you do not provide any instruction to Old Mutual about how you want your Member Account Balance to be dealt with, it will automatically be moved to the SuperFund Preserver option after 120 days (subject to certain conditions).
Important Note: The investment choices in Preserver are different to those offered to OMEGS active members. If you do not select a Preserver investment option when you transfer or you are defaulted to Preserver, you will remain invested in your current OMEGS investment portfolio(s). You can at any stage switch investments but can only select from the standard range of investment portfolios offered under Preserver. Once you switch all or part of your assets invested in an OMEGS portfolio(s), you will not be allowed to switch back to them.
Other useful info
- When you leave, you are able to convert your life assurance benefit into a policy in your own name, without needing to go for any medical underwriting. This can be a very valuable benefit – so why not find out more about the Life Assurance Conversion Benefit.
- To help you understand the benefits of preserving your benefit (rather than taking the cash), why not find out more about your Retirement Planning Status?