The POST OFFICE RETIREMENT FUND

24/04/2015 18:09

The Constitutional Court's earlier ruling that the GEPF rules, as they relate to the clean-break principle, is read-into the Post Office Act, 1958 came into effect on 7 November 2013.

To amend the South African Post Office SOC Ltd Act, 2011; so as to update and transfer pension-related provisions of the South African Post Office from the Post and Telecommunication-related Matters Act, 1958, to the South African Post Office SOC Ltd Act, 2011; to provide for the payment of pension benefits to a former spouse of a member on divorce or the dissolution of a customary marriage; to improve governance provisions between the Boards of the South African Post Office SOC Ltd and the South African Postbank Limited; to amend the Post and Telecommunication-related Matters Act, 1958; and to provide for matters connected therewith.

 

The following wording has to be in the settlement agreement before the Post Office Retirement Fund will pay your claim:

 

  • The percentage that you are entitled to, for example 60% or 50%.

  • The name -  POST OFFICE RETIREMENT FUND - must be listed.

  • By adding your spouses pension reference number also ensures a valid claim.

 

Payment of pension interest upon divorce or dissolution of customary marriage:

  1. Once you receive your final court order or decree of dissolution of the customary marriage you can submit your claim to the Post office Retirement fund. 
  2. You need to inform the fund if you elect to take the full benefit in cash or transfer to an approved fund.   
  3. Once you have submitted your claim the fund has to pay your benefit within 60 days.

 

Tax payable when electing to take your benefit in cash:

 

As from 1 March 2014, the following table will be applicable to taxable lump sums taken prior to retiring from a retirement fund vehicle (i.e. withdrawals):


 

Taxable income (R)


 

 

Rates of tax (R)


 

 

R0 - R25 000


 

 

0%


 

 

R25 001 - R660 000


 

 

18% of the taxable income above R25 000


 

 

R660 001 - R990 000


 

 

R114 300 + 27% of the taxable income above R660 000


 

 

R990 001 and above


 

 

R203 400 + 36% of the taxable income above R990 000


 

 

 

The normal Parliamentary processes however still had to be followed to amend the PO Act and the relevant Amendment Bill has since been signed by the President. The Rules of the Fund still have to be approved by the Minister of Communications and the Minister of Finance.  We will be able to pay divorce benefits to non-member spouses once the Rule amendment is approved and published in the Government Gazette.

Should you wish to claim your benefit and you have a valid court order then Divorcesmart will assist in the administration of your claim. An administration fee of 2% calculated on your amount that will be paid to you will be levied.

Contact: Christel du Toit -Registered Financial Planner  with the FSB - Diploma in Financial Planning (UOVS)

christel@finsmart .co.za

082 852 7610

FSP - 44557

Finsmart Asset Management (Pty) Ltd is a licenced financial services provider.