With the implementation of the “Two-Pot” Retirement System on 1 September 2024, members who exit the Fund due to resignation, dismissal or retrenchment will no longer be able to withdraw their full member share as a cash lump sum.
Effective 1 September 2024, all member contributions will be split:
Vested Component: This refers to your Fund Value accumulated before 1 September 2024.
On withdrawal (resignation, dismissal, retrenchment, etc.), you can:
Withdraw a portion of, or the full vested component as a cash lump sum. Please note that if you elect to only take a portion of your vested component as a cash lump sum you will be required to transfer the remaining balance of your vested, savings and retirement component to an external provider. The table below indicates the tax tables that will be used when withdrawals are done.
Lumpsum tax deduction table on resignations
Resignation benefit
Tax rate applied
R1- R27 500
Tax-Free
R27 501 – R726 000
18%
R726 000 – R1 089 000
27%
R1 089 001 and above
36%
Become a deferred member, and leave your fund value invested with the CRF until you reach retirement age
Transfer your full vested component to your retirement component in the Fund
Transfer your full vested component to an External Service Provider
Remember this!
The vested component is only available if you were a member of the Fund before 1 September 2024
Savings Component:After 1 September 2024: One-third of your contributions will go to your savings component, including future investment growth.
On withdrawal (resignation, dismissal, retrenchment, etc.), you can:
Withdraw the full savings component as a cash lump sum.
Become a deferred member, and leave your fund value invested with the CRF until you reach retirement age
Transfer your full savings component to your retirement component in the Fund
Transfer your full savings component to an External Service Provider
Remember this!
If you made a withdrawal from your savings component within the same tax year as your termination of service with the Municipality and the value of your savings component is less than R2000 then you are permitted to withdraw the total balance available in your savings component.
If you made a withdrawal from your savings component within the same tax year as your termination of service with the Municipality and the value of your savings component is more than R2000 then you will only be able to withdraw your savings component in the next tax year.
Retirement Component: Effective 1 September 2024 your retirement component will consist of two-thirds of your monthly contributions which will be allocated to your retirement component together with future growth.
Remember your retirement component will not be accessible until you reach retirement. This means the benefit is preserved specifically for you to receive a benefit at retirement.
On withdrawal (resignation, dismissal, retrenchment, etc.), you can:
Become a deferred member, and leave your fund value invested with the CRF until you reach retirement age
Transfer your retirement component to an External Provider
Did you know?
As mentioned above, your retirement component must be used to purchase a monthly income.
Any CRF member that was 55 years or older on 1 March 2021 will be exempt from the “Two-Pot” Retirement System.
To download our “Two-Pot” Retirement System Brochure, click here
Alternatively, to speak to a consultant, please contact our member centre on 0861 273 863 or send an email to support@crfund.co.za
NEWDon’t fall for scams!
Scammers are on the prowl and are always looking for creative ways to get money from you.
Safeguard yourself by implementing the following rules:
Be alert! Always verify the facts! Who are you dealing with?
The CRF will never request you to make payments directly to a CRF employee.
If you receive communication, make sure it’s from our official communication channels: | support@crfund.co.za |
Your support team is here to assist! When in doubt let us know! Contact our client services team on 0861 273 863.
