Organisation : Transport Sector Retirement Fund (TSRF)
Service Name : Two-Pot System
Country : South Africa
Website : https://tsrf.co.za/two-pot-system
What is TSRF Two-Pot System?
The Two-Pot retirement system allows South Africans to access a portion of their retirement savings for emergencies while still employed. The Two-Pot system offers a flexible and efficient way to structure your retirement savings, ensuring both immediate accessibility and long-term growth. Our FAQ guide is designed to answer your most pressing questions. Explore the topics below to gain a deeper understanding of how the Two-Pot system works, its benefits, and how you can make the most of your retirement funds.
Related / Similar Facility : TSRF Pension Back Home Loan
How To Submit Two-Pot Claim?
All Two-Pot claims must be submitted through the member portal. Send “Hi” via WhatsApp using this number: 087 240 7004
Register on member portal:
Ensure you have registered on our member portal
Member Details:
Ensure you have all your personal details at hand such as valid home affairs info, residential address etc
Tax Number:
All two-pot savings claims require a valid tax number. Ensure you have one before you lodge a claim.
Bank Account:
You must have an active bank account under your name where your claim will be paid to
Components of TSRF Retirement Savings
Vested Component:
The money in your vested component will still follow the same rules as before.
When you leave your employer you can:
** stay in the Fund as a paid-up member
** take your money in cash
** transfer the money to another fund.
Savings Component:
You can withdraw this money as cash lump sum when you retire
OR
You can withdraw only in cases of emergencies, a minimum of R 2,000 (before fees and taxes) once a tax year without leaving the Fund. There is no maximum withdrawal amount from this pot.
Retirement Component:
** You cannot withdraw any money from this pot when you leave your employer. The money must remain invested until your retirement.
** You must buy a pension with your money when you retire. If the value of all 3 Pots are below R 165,000 you may take the entire benefit in cash.
Deduction of Two-Pot System
Tax:
All Two-Pot System claims are subject to tax If you owe any money to SARS, please settle these amounts promptly, as SARS will deduct any outstanding amounts before your claim is paid out
Admin Fee:
The withdrawal fee for TSRF is set at R250.00 VAT excl per member per withdrawal and will be deducted from the benefit before payment to member.
Emergency Withdrawals:
If you have an emergency and want to withdraw from the savings pot, what do you need to know?
** You can withdraw a minimum of R 2,000 (before fees and taxes) once a tax year without leaving your employer.
** You will pay tax (marginal tax rates – which is the highest tax rate) and a processing fee on saving withdrawals.
** If you decide to withdraw your money from your savings component you need to notify the Fund. The Fund will not automatically transfer the money to your bank account.
** From 1 September 2024, one of the primary ways you will be able to withdraw from your savings component will be through the TSRF Online Benefit Counsellor Tool, we will give you more detail about the process within the next few months. For now please ensure that you are registered on the Benefit Counsellor.
** You can only start the process of withdrawing money from 2 September 2024 (first business day), and only if you have at least R 2,000 in your savings component (pot). It will take at least two weeks to process your request and for you to get your money.
** Remember that the tax and processing fee will be deducted so you will not receive the full R 2,000.