The Two-Pot Retirement System is a legislative framework introduced by the South African government. The Two-Pot Retirement System allows retirement fund members to have access to the portion of their retirement savings before termination of their fund membership.

1. A vested component
2. A retirement component
3. A savings component

The vested component:

This is the component of the members contributions which constitute the member’s individual account as per section 14B of the PFA, and which was accumulated before 1 September 2024. This component remains as is and is governed by the rules as we know them before the Two-Pot Retirement System.

The retirement component:

The retirement component is now made up of two thirds of the member’s contributions. And this component can only be accessed at retirement, even if the member changes employers or withdraws from the Fund.

The savings pot:

This is the component that consists of one third of a member’s contributions and can be accessed once during a tax year, subject to a minimum withdrawal amount of R2000.

Annual withdrawals:

You will be able to withdraw a minimum withdrawal amount of R2000 once per tax year. The withdrawals run from March until the end of February the following year. Meaning you can withdraw at any time of the tax year but you can only withdraw once per tax year.

To be able to withdraw your available balance must not be below the minimum threshold.

If you choose not to withdraw your Savings Pot money it will continue to grow. You can then withdraw it as cash when you reach retirement.

The Vested Pot and the balance in the Savings Pot can be taken in cash. The Retirement Pot must be used to buy a pension for life.

If you leave your employer before retirement through resignation, retrenchment or dismissal, you can only access your vested component as well as your savings component as a cash lump sum (tax will apply).

1. You can submit your claim online by visiting www.mwpf.co.za
2. If you prefer personal assistance, you may visit the Fund Walk-in centres or Employer Based Service Consultants
3. Claims will be processed through an automated system.
4. Once claim has been lodged, you will receive an acknowledgement SMS followed by ongoing updates regarding the claim status.
5. No additional fee will be levied for the initial phase, this is subject to future review.
6. Claims will be paid within a maximum of 14 working days after submission of the claim
   and all supporting documents.

The following documents will be required to complete a claim:

1. Original Identity/Passport Document Tax Document or Number
2. Latest Salary Slip
3. Copy of the Bank Statement – not older than three months
4. If your banking details differ from those on your payslip, you need to provide banking
   details that are three months old or older.

1. If you were younger than 55 on T-day, your T-day vested benefit is your retirement savings on 28 February 2021. Your T-day non-vested benefit is all your retirement savings from T-day.
2. If you were 55 or older on T-day and remained in the Fund, your T-day vested benefit is your retirement savings on 28 February 2021 and all your retirement savings from T-day. You will not have a T-day non-vested benefit.
3. If you were 55 or older on T-day but transferred to a new fund after T-day, your T-day vested benefit is your retirement savings up to the date of your transfer to the new fund. Your T-day non-vested benefit is all your retirement savings in the new fund.

Furthermore, members who were 55 years or older on 1 March 2021 and who remained members of the Fund until 1 September 2024 can elect whether to participate in the Two- Pot Retirement System or remain as contributing members according to the pre-1 March 2021 regime. Member must opt-in within 12 months from 1 September 2024. If members do not opt into the two-pot retirement system but transfers into another fund after 1 September 2024, then they will automatically be in the Two-Pot Retirement System.

Withdrawals from the Savings Pot before retirement are subject to marginal tax rates. This means that the amount withdrawn is taxed according to the individual’s income tax bracket. The tax rates can vary based on the total income, including the withdrawn amount. Members should consider the potential tax consequences when making withdrawals from the Savings Pot.

Your money will continue to grow, each pot will be allocated with the Fund’s growth, you will be able to track the growth of each pot from your benefit statement.

No, when you resign or are retrenched, you will not be able to take any amounts in your retirement savings pot, however, you will only be able to take the amounts in your vested pot, plus any amount in your savings pot. The retirement pot will remain closed until you reach early retirement or normal retirement.

Only members that were 55 years in 1 March 2021 will be allowed to choose if they want to opt-in or opt-out, all members that were younger than 55 in 2021, will form part of the new Two-Pot Retirement System.

If you do not withdraw from your savings pot, and you leave your money for your retirement, it will be taxable as a lump sum benefit, as per the retirement lump-sum tax table. This tax deductions are significantly lower than the marginal tax rate, and this will give you more cash at retirement.