If you resign, or you are retrenched, you are allowed to withdraw from your employer-sponsored retirement fund (that is a pension or provident fund). The “benefit” you can claim is the balance in your retirement account. Once you have withdrawn, you have no other claim against that fund. Before retirement, you can only access your provident fund if you resign from your current employer. You can then withdraw from the provident fund, and claim your fund credit as a cash lump sum. You will pay tax on any lump sum above R22 500. You other option is to apply for a loan, but this must used for a purpose as contemplated by s19(5) of the Pension Funds Act (essentially housing-related), and such loan must be permitted by your provident fund’s specific rules.
Does Provident Fund accumulate interest?
Interest Rate. The interest rate for the EPF for the year 2018-19 currently stands at 8.65 percent. However, this interest is not applied at the end of the year but it is calculated at the end of every month. It is then deposited into the EPF account after the financial year is complete.