When you exit the Fund due to resignation, dismissal, or retrenchment, your full member share becomes payable as a lump sum. Your benefit is made up of your contributions, plus the employer’s contributions, plus all investment returns, minus the amount you pay towards risk cover and the percentage that is deducted for the running costs of the Fund. On leaving the Fund, it is very important to remember that the main purpose of retirement funding is to provide you with a sustained regular income when you retire one day. It is therefore vital to consider the pros and cons of taking a cash lump sum when leaving your employment prior to retirement age. There are tax implications on lump sum withdrawals as shown in the table below:
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%
Lumpsum tax deduction table on retirements
Retirement benefit Tax rate applied
R1 – R550 000 Tax-Free
R550 001 – R770 000 18%
R770 001 – R1 155 000 27%
R1 155 001 and above 36%
The Fund actively encourages members to preserve their retirement savings when exiting the Fund before retirement age, by considering one of the following preservation options:
  • Become a paid-up member: This option allows you to leave your resignation or retrenchment benefit in the Fund when you leave service. The money is preserved in the Fund and investment returns will be allocated each month (positive or negative returns).
  • Transfer your benefit to a provident preservation fund: You may transfer your money to a provident preservation fund to provide for retirement. You could be able to make a one-off withdrawal depending on the rules of the preservation fund that you choose.
  • Transfer to a retirement annuity: you will be preserving your benefit for retirement.
Portfolium has been appointed by the Board of Trustees as financial advisors, and they are on hand to assist you in making the right choices and helping you to retire comfortably one day.
click here for all CRF forms

Check forms for the applicable forms to download and complete.


How to join the CRFund