In South Africa, the Provident Fund does not expire. The funds remain in the account until the account holder decides to withdraw them or until they retire.
Before March 1, 2021, provident fund members could withdraw their entire fund value as a lump sum at retirement. However, from March 1, 2021, provident fund members who are younger than 55 years of age will see any further contributions on or after 1 March, and the growth thereon, deemed as the ‘non-vested’ portion of their fund, the value of which will be subject to the 2/3 rds annuitisation rule upon retirement.
A provident fund member who is 55 years or older at the 1st of March 2021 will not be subject to the new rules for provident funds, regardless of whether further contributions are made from the date the amendments came into force. This means they are allowed to withdraw the entire value of the fund as a lump sum, provided that any further contributions are made to the existing provident fund.
Can I still claim my provident fund if my job is terminated?
The Provident Fund amount shown in your most recent earnings report is yours (even if your employer has paid all contributions). Whether you cancel, cancel, or cancel, the money is yours and you can redeem it or transfer it to another register. Transfers to other funds are not taxed, but cashings are taxed according to the fixed withdrawal tax rate table. The first R22 500 is paid tax-free.