If I resign or get dismissed from employment before retirement age, what will I be entitled to?
You will be entitled to one of the following options:-
- Refund of total Employee contribution plus interest and preserve the total Employer contribution plus interest within the Fund.
- Refund of total Employee contribution plus interest and transfer Employer contribution plus interest to another registered Pension Fund or retirement annuity of your choice.
- Preservation of both Employee contribution plus interest and Employer contribution plus interest within the Fund.
- Transfer of both Employee contribution plus interest and Employer contribution plus interest to another registered Pension Fund or retirement annuity.
Note that the preserved or transferred Employer contributions plus interest will only be enjoyed from 55 years old.
If you are dismissed after attaining 55 years old, the dismissal is treated as a retirement benefit.
Is my resignation or dismissal benefit taxable?
If you opt to preserve or transfer your benefits to a registered Pension Fund or Retirement Annuity the transfer value is not taxed, otherwise if you decide to be paid your benefit it becomes taxable.
Which documents are required when claiming for my resignation or dismissal benefits?
- Certified copy of your Identity Document (ID) or valid Passport or Driver’s License,
- Fully completed Member Exit Form submitted by the Employer,
- Current Banking details,
- A copy of your last payslip.
- Member option letter.