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Some administrators have followed a phased approach and will only be accepting withdrawal forms in the coming days and weeks. PERSONAL FINANCE As members of retirement funds submit withdrawal forms to access the funds available in their savings pot, retirement administrators have warned members not to expect immediate payment. Members must also ensure that their paperwork is up to date in order to reduce delays in processing the payments.
Some administrators have followed a phased approach and will only be accepting withdrawal forms in the coming days and weeks. The Old Mutual channel on WhatsApp will only start accepting withdrawal applications on 23 September. READ: Retirement funds hit with flood of withdrawal requests as two-pot system is launched However, members of Old Mutual can WhatsApp “Hi” to 0860 933 333 to check their balance and confirm their eligibility to withdraw this money prior to 23 September.
Once an application has been received, it will undergo a vetting process to ensure that the personal details supplied match the information in their system Discovery will only open for retail withdrawals on 8 September and those withdrawal applications will have to be done through the retirement annuity member’s adviser. The withdrawal from provident or pension funds managed by Discovery Corporate and Employee Benefits will only commence on 16 September. Guy Chennells, the entity’s chief commercial officer, says this was a strategic decision to ensure that the system was ready for the volume of applications.
Those administrators that are already processing withdrawal requests have warned about delays. Alexforbes says they expect to take 20 working days before members would receive payment, assuming applications are fully and correctly completed. READ: Personal Finance | Can I cash in my retirement annuity While it is easy for consumers to point a finger at the insurers, claiming they are delaying payment, members need to be aware of the process.
Momentum Corporate says that the speed of payment differs, because it depends on many things, such as volumes received, whether people are in good standing with the SA Revenue Service or whether their forms are completed accurately. Depending on the circumstances per case, it can take anything from two to 20 days. Sanlam has warned that it is not like a banking transaction account from which consumers can just withdraw in a day.
Sanlam’s business head: business shared services, Michelle Moller, explains that the two-pot withdrawal process is linked to long-term retirement provision and presents specific legislative and tax requirements for a withdrawal to be made, including the submission of a tax reference number, confirmation of banking details and provision of annual income. Sanlam is able to process a withdrawal request as soon as a client has completed its online withdrawal application process or sent a completed withdrawal application form along with the information referenced. Legislation then requires the administrator (such as Sanlam) to request a tax directive from the receiver of revenue, indicating the amount of tax which should be deducted from the requested withdrawal amount, before payment can be made to the client.
Moller says: As soon as Sanlam receives the tax directive response from the receiver of revenue, we will process the final step, in line with our commitment to ensure that the payment into the bank account of the client happens as soon as possible. Michelle Acton, a retirement reform executive at Old Mutual, says that if your fund administrators haven’t been in touch, it’s likely they don’t have your correct information. It is important to update details such as cellphone numbers and ID numbers to avoid any delays when trying to access funds.
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