Members

Withdrawing from the Fund

A member may only withdraw from the fund on termination of employment with their employer in accordance with the Penpro Provident Fund and Penpro Pension Fund General Rules.

Options

Members have the following options when withdrawing from the Fund:

  1. Cash Withdrawal
    Tax may be payable on any cash portion taken.
  2. Transfer to another Fund
    Members may request to transfer all or part of their funds to their new employer’s fund, or into a Preservation Fund.
  3. Part Cash/Part Transfer
    Same rules apply as per (1) and (2) above.

Process

  • Obtain a Withdrawal Form from your Employer or download a form here.
  • Complete the Withdrawal Form in full and obtain the required Company signature and stamp.
  • Gather all other documents required according to the type of withdrawal (see Documents Required below).
  • Ask your Company to submit the completed Withdrawal form and documents to Penpro Administrators OR
    • email the documents to withdrawals@penproadmin.com OR
    • fax the documents to 0866 815 992
Penpro Withdrawal Options

Understanding the Employee and Employer Contributions

Employee Contribution

  • The amount deducted from the member‘s monthly salary/wage.
  • The entire amount is credited directly to the member’s investment portfolio each month.

Employer Contribution

  • The amount paid by the company, which may be less, equal to or more than the employee contribution, depending on the special rules set by the Participating Employer.
  • This amount is used to pay for Risk premiums if any (e.g. life cover, funeral, disability), commission to the broker appointed by the Employer and administration fees due to Penpro Administrators.
  • The balance of the Employer Contribution after these costs is credited to the Member’s investment portfolio.

Contributions

  1. Contributions must be received into the relevant umbrella fund account by no later than the 7th day of the month following the month of contribution (salary month). E.g. if the month of contribution (salary month) is January, then the fund contribution must be received by the fund by no later than the 7th of February.
  2. Every contribution payment must be accompanied by a schedule containing a breakdown of contributions for the employees of the company.
  3. The schedule contains Employee name, ID number, Salary, contribution breakdown, etc.
  4. No investments can be processed until both the payment and contribution schedule for the contribution month have been received by Penpro Administrators.
  5. Penpro Administrators is bound by the terms of the Pension Fund Act to report late and non-payment of contributions and to apply appropriate penalties to the defaulting Participating Employer. Penalties accrue to the Financial Services Board.

Processing of Contributions

  1. The contribution payment and schedule are processed in the Penpro system.
  2. The investment portion is paid over to the relevant investment house.
  3. Confirmation of this investment is returned from the investment house within 2-4 days.
  4. The confirmation of investment includes the unit rate at which the funds were invested and the number of units purchased in total.
  5. The investment confirmation is processed in the Penpro system to allocate units to each member of the participating employer according to each member’s contribution amount.

Documents required for all Withdrawal types:

  1. Penpro Withdrawal form with:
    • ALL relevant information completed.
    • The correct ‘Withdrawal type’ option selected.
    • the month for which the last contribution was paid.
    • signature of the withdrawing member.
    • signature of the company HR/payroll officer (or person designated by the company).
    • Company stamp.
  2. Certified copy of Members Identity Document. Certification stamp and date must be legible.

Note: If any relevant information, signatures or stamp is missing, or the signatures do not match the authorised signatures on our records, the withdrawal will not be processed.

Documents required for all Withdrawal types

Cash Withdrawal

  • All documents listed under “All withdrawal types”
  • Proof of Bank Details
    • A letter from the bank or a copy of the front page of the withdrawing member’s current bank statement (not older than 3 months).
    • The proof of bank details must show the following:
      • Name of bank
      • Name of account holder
      • Account number

Notes:

  • The account must be a valid account and must be active.
  • Account details are verified by Penpro Administrators before a withdrawal payment is made.
  • Payment is only be made to an account in the name of the Member, not to any third party account, unless there are special circumstances, which have to be approved by the trustees of the fund.

Transfer to Another Fund

  1. All documents listed for “All withdrawal types”.
  2. Details of Other Fund
    • The name of the fund to which the member wishes to transfer.
    • Full contact details of the broker or fund administrators.
    • Any policy documentation relating to the new fund.

Note: Penpro Administrators will contact the responsible person and arrange for a Recognition of Transfer form to be completed and thereafter transfer the funds.

Transfer to Another Fund
Part Cash / Part Transfer

Part Cash / Part Transfer

  1. All documents as per the requirements for Cash Withdrawal and Transfer to Another Fund.
  2. Indicate Cash Withdrawal and Transfer to another fund as the withdrawal type option.
  3. Indicate amount to be taken in cash or conversely the amount to be transferred..

Notes:

  • All withdrawals are subject to tax.
  • Penpro Administrators will apply for a tax directive before payment is made.
  • All taxes specified by the directive will be deducted from the amount payable and paid over to SARS.
  • Penpro Administrators cannot estimate the tax to be paid on any member withdrawal, as the tax payable is totally dependent on each member’s tax account/status at SARS.
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