Benefit Options

 Understand your options for accessing retirement funds in a way that aligns with your financial goals.

Key Benefit Options

Applicable tax brackets on lump sum withdrawals are as follows:

Retirement Fund Information
🏦
Vested Pot
Your accumulated savings prior to the two-pot implementation date. Governed by pre-existing retirement fund rules.
  • Take part or full cash
    • And / Or
  • Preserve in-fund
    • And / Or
  • Transfer to another retirement fund with other pots
✦ Using withdrawal tax tables — first  R27,500  is tax free
💰
Savings Pot
One-third of future contributions go here. Accessible before retirement in cases of financial need.
Withdrawal Access

You may make one withdrawal per tax year, with a minimum of R2,000. No restriction on the reason for withdrawal.

  • Withdraw cash (taxed at marginal rate)
    • And / Or
  • Preserve in-fund until retirement
    • And / Or
  • Transfer to another approved retirement fund
✦ Withdrawals taxed at your  marginal income tax  rate
🔒
Retirement Pot
Two-thirds of future contributions go here. Preserved strictly for retirement — cannot be accessed early.
⚠ No early withdrawal permitted
  • Purchase a compulsory annuity at retirement
    • And / Or
  • Combine with Vested Pot at retirement
    • And / Or
  • Transfer to a Retirement Annuity Fund
✦ Fully preserved — grows  tax-deferred  until retirement

If you were a member of the previous fund before 1 March 2021 and you were 55 years or older on 1 March 2021 and you remained a member, your benefits are protected and means that whether you resigned or retired after 1 September 2024 you will always receive all your benefits in cash. You are exempted from the Two-Pot system and will only have a Vested pot. Your contributions to the previous fund after 1 September 2024 will have remained invested in your Vested Pot.

Withdrawal (Resignation, Dismissal and Retrenchment)

When you leave the NEBUF (resign, you are retrenched, you abscond, end your contract or you are dismissed) you may withdraw your Accumulated Retirement Savings from the NEBUF. However, your Retirement Pot may not be taken as a lump sum and must either be preserved in the NEBUF or transferred to Another Retirement Fund.  

Vested component:

This includes all contributions made before 1 September 2024, together with the investment growth on those contributions. You may withdraw up to 1/3 of this amount, which will be taxed according to the retirement lump-sum tax tables of SARS.

Savings component:

You may withdraw up to the full remaining balance, or transfer the remaining amount to the Retirement component to purchase a living or guaranteed annuity. Any withdrawal from this component will also be taxed according to SARS retirement lump-sum tax tables.

Retirement Benefit

When you retire,  you will have the option to take the following as a lump sum:

  1. All of your Savings Pot
  2. All of the Vested Share in your Vested Pot
  3. 1/3rd of your Non-Vested Share in your Vested Pot.  
  4. If the total of your Retirement Pot plus 2/3rds of the Non-Vested Share in your Vested Pot is less than R165 000, you may take your entire Vested Pot and Retirement Pot as a lump sum.

Death Benefit:

Your benefit consists of your accumulated retirement savings in the NEBUF. Your NEBUF death benefit is distributed in terms of Section 37C of the Pension Funds Act.

As a Board, we need as much information as you can give us about your dependants. The Section 37C of the Pension Funds Act defines dependants as:

a) a person in respect of whom the member is legally liable for maintenance;
b) a person in respect of whom the member is not legally liable for maintenance, if such person-
i) was, in the opinion of the board, upon the death of the member in fact dependent on the member for
maintenance;
ii) the spouse of the member;
iii) is a child of the member, including a posthumous child, an adopted child and an illegitimate child;
c) a person to or for whom the member would have become legally liable to pay maintenance, had the member not
died.

The Board is obliged to consider all dependants and any nominees as defined by law (but not necessarily make allocations to them). The Board must pay benefits in the proportion it judges to be fair, so we need as much information as possible.