If you work for multiple employers or have worked for many years, you may have significant amounts of money in one or more Provident funds. This is because the employer is legally required to contribute to the pension and many employers choose provident funds because they are more flexible than pension funds. Above all, it is flexible to be able to withdraw from the pension fund before retirement. with certain conditions.
Step by Step Guide to Claim from Provident Fund
Since companies contribute to different funds, the contact numbers and website details – even the withdrawal process – will change. However, the step by step process detailed below should remain the same and help you claim your provident fund.
Step 1: Contact the HR Department of the Previous Employer
If you have worked at one or more companies before but have not claimed from your provident fund, you should start by creating a list of your former employers. From there, you will need to get in touch with the HR department of each employer to request information about the provident fund they were contributing to while you were employed. In some instances, you can make a withdrawal request through the HR department. However, now that you have the information about the provident fund, you can claim directly from the fund.
Step 2: Request a Withdrawal Form
If the money is in your previous employer’s retirement fund, you can request a withdrawal form directly from them. However, if the money has been transferred to a third-party administrator, once you have received their contact information, you will need to approach them to request a withdrawal form.
Step 3: Provide Relevant Supporting Documentation
If the fund was managed by the company where you were employed, you will likely only need to submit a certified copy of your ID alongside the withdrawal form to access the funds. However, if it is held by another company, you may also need to provide other supporting documentation. This can include proof that the company that contributed to the fund no longer employs you, and if you want to transfer any money to another retirement fund, the details of the new retirement fund.
Step 4: Wait 14 to 21 Days For Funds to Reflect
If your taxes are in order (you don’t have any outstanding taxes), your provident fund should be paid out in 14 to 21 business days after you have submitted all relevant information and your request has been approved.
How Much Tax Do I Pay on a Provident Fund Withdrawal?
Before you start making plans on the amount you could potentially receive from provident fund withdrawals, remember you have to pay SARS. The money you may have saved in these funds will not be the windfall you expect it to be because it has to be taxed.
How much tax you pay on your provident fund withdrawal will depend on: how much you’re withdrawing at that time and how much you’ve withdrawn in the past.
Since SARS shows no distinction between retirement funds – provident fund, pension fund, preservation fund, or retirement annuities – any withdrawals you’ve made from any fund contributing to your retirement will be totalled to determine how much you’ll pay in taxes.
Keeping that in mind, the tax you’ll pay is as follows:
- Withdrawals Up to R25 000: 0% in taxes
- Withdrawals above R25 001 and below R660 000: 18% in taxable income above R25 000.
- Withdrawals above R660 001 and below R990 000: R114 300 + 27% of taxable income above R660 000.
- Withdrawals above R990 001: R203 000 + 36% of taxable income above R990,000.
Another aspect to consider when withdrawing from your provident fund is that you may also be subject to fees from the company managing the fund, in addition to the taxes.
Overview of Public Universities in South Africa
Here's an overview of some public universities in South Africa, including general admissions requirements and estimated application periods. Keep in mind, specific program requirements and dates can vary significantly, so it's important to check each university's official website for the most current information.
University of Pretoria
- Admissions Requirements: National Senior Certificate with minimum scores in specific subjects related to the chosen program; for international students, equivalent qualifications.
- Application Period: Usually opens in March and closes at the end of July for most programs.
University of Cape Town
- Admissions Requirements: National Senior Certificate with pass levels required for degree study; subject-specific requirements depending on the program.
- Application Period: Application opens in April and closes at the end of July.
Stellenbosch University
- Admissions Requirements: National Senior Certificate with required marks; some programs have additional testing.
- Application Period: Opens in March and typically closes at the end of June.
University of the Witwatersrand
- Admissions Requirements: Matriculation certificate with university exemption; required scores vary by faculty.
- Application Period: Begins in March and ends on the 30th of September.
University of Johannesburg
- Admissions Requirements: Matric exemption with a minimum APS score; specific subject requirements based on the faculty.
- Application Period: Opens in April and generally closes by the 30th of September.
University of the Free State
- Admissions Requirements: National Senior Certificate with specific marks for the program applied to; additional requirements for certain courses.
- Application Period: Typically opens in April and closes at the end of August.
University of Venda
- Admissions Requirements: Completion of the National Senior Certificate with an endorsement for diploma or degree studies; specific APS scores needed.
- Application Period: Usually from May to September.
University of Fort Hare
- Admissions Requirements: National Senior Certificate with university exemption; certain programs may have specific requirements.
- Application Period: Opens around May and closes at the end of September.
University of the Western Cape
- Admissions Requirements: National Senior Certificate with specific performance levels; additional requirements for certain programs.
- Application Period: Generally from May to September.
North-West University
- Admissions Requirements: National Senior Certificate with university exemption; program-specific requirements may apply.
- Application Period: Opens in March and usually closes by the end of August.
Rhodes University
- Admissions Requirements: National Senior Certificate or equivalent; minimum academic performance in certain subjects.
- Application Period: Applications open in April and close at the end of September.
Nelson Mandela University
- Admissions Requirements: National Senior Certificate with required scores for chosen programs; portfolio or additional tests for some faculties.
- Application Period: Opens in April, with a deadline at the end of August for most programs.
Cape Peninsula University of Technology
- Admissions Requirements: National Senior Certificate with specific scores; additional requirements for certain courses.
- Application Period: Opens in May and typically closes by the end of September.
University of Limpopo
- Admissions Requirements: Senior Certificate with endorsement for diploma or degree courses; specific APS scores for different programs.
- Application Period: From April to September.
University of Zululand
- Admissions Requirements: National Senior Certificate with an endorsement for bachelor’s degree studies; specific score requirements for various programs.
- Application Period: Usually between April and November.
Central University of Technology
- Admissions Requirements: National Senior Certificate with specific scores for the chosen field of study; additional criteria for certain programs.
- Application Period: Application period generally starts in May and ends in October.
Vaal University of Technology
- Admissions Requirements: National Senior Certificate with a pass that qualifies for admission to bachelor’s degree, diploma, or higher certificate programs.
- Application Period: Typically from May to September.
Walter Sisulu University
- Admissions Requirements: National Senior Certificate with required scores for chosen programs; additional criteria for certain faculties.
- Application Period: From April to September.
This list provides a starting point for understanding the admissions landscape across South Africa's diverse higher education institutions. Given the variability in programs and requirements, it's crucial to consult each university's website for the most accurate and up-to-date information.
```