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Classic Preservation Pension/Provident Plans

Preservation plans are retirement fund vehicles specifically aimed at and created for preserving the retirement benefits of members in provident or pension funds. STANLIB offers two types of preservation funds, namely the Classic Preservation Pension Fund which allows for transfers from approved pension funds, and secondly the Classic Preservation Provident Fund which allows for transfers from approved provident funds

The Classic Preservation Plans are ideal for individuals who:

  • Are retrenched
  • Are dismissed
  • Have resigned
  • Whose pensions are being liquidated or are in the process of winding up

Tax

If you are invested in a pension or provident fund, you can transfer your accumulated funds to preservation plans without incurring any tax penalties if you are no longer able to remain a member of that specific fund (ie. you have changed employment or have been retrenched).

Withdrawal options

With these plans, you are allowed one withdrawal before retirement, although this withdrawal will be subject to tax.

Your investment’s capital growth influences the income you will earn during your retirement.  If you reduce your retirement capital by making a withdrawal prior to retirement, it may impact on your retirement proceeds and your ability to provide sufficient income to cover your living expenses.  We encourage you to speak to your financial adviser before proceeding with your withdrawal. Alternatively you can contact STANLIB on 0860 123 003 for assistance.

Flexibility

  • There is also the flexibility to retire from the plan any time after the age of 55 or prior to 55 should you become disabled
  • On retirement, you then have the option to withdraw up to a maximum of 1/3 cash lump sum. The remainder must be invested in a linked life annuity or compulsory purchase annuity in the case of a Preservation Pension Plan
  • In the case of a Preservation Provident Plan, you have the option of taking a full lump sum or investing the full amount or balance in a linked life annuity or compulsory purchase annuity

Transfer benefits

No initial fees are charged on the annuity component when transferring to the STANLIB Classic Linked Life Annuity at retirement.

Regulation 28

Regulation 28 of the Pension Funds Act sets the limits in terms of the maximum exposure the retirement fund (in this case STANLIB’s Classic Preservation Plans) and the individual retirement fund member’s savings (i.e. your savings) may have to various asset classes. For more information please read the Regulation 28 Communication or refer to the Regulation 28 Restrictions document for the guidelines.

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All legislative material, including the registered Rules of the Fund are at all times available to the members.  We welcome members to address questions concerning the Rules – to which our Trustees will respond.

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Disclaimer
Figures quoted are from Morningstar for the period ending  for a lump sum, using NAV-NAV prices and do not take any upfront managers charge into account. Income distributions are declared on the ex-dividend date. Actual investment performance will differ based on the upfront managers charge applicable, the actual investment date and the date of reinvestment of income. Past performance is not necassarily an indication of future performance.
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