Preservation Fund

Transfer your pension / Provident fund money from your
old employer to a preservation fund. One withdrawal allowed,
there is no tax and your funds are re-invested for future growth.

Pension/Provident Preservation Fund

A vehicle used to preserve your pension or provident fund savings from your previous employer when changing jobs.

A preservation fund preserves your pension or provident money together with your years of pensionable service when you withdraw from an employer’s fund as a result of resigning from employment, retrenchment or dismissal from employment.

It is not available at retirement.

Preservation funds are approved umbrella pension or provident funds to which members of an existing employer’s pension or provident fund can transfer their accumulated funds on termination of service.

A preservation fund ensures the preservation of any accumulated tax status as well as the continued growth of such funds.

It is a fund that protects the funds recovered from the pension/provident fund that the member is leaving, without tax disadvantages, as transfers from a pension/provident fund to a preservation fund are tax free, as long as certain requirements are met.

Under certain circumstances, preservation plans provide the option of one withdrawal prior to retirement, should the member need it.