Central Provident Fund (South Africa)
Encyclopedia
In South Africa
, the Central Provident Fund is a retirement benefits trust established in 1989 and administered by Sanlam
Life Assurance Limited. Provided a member is at least 55 years old when retiring, they may choose three options: (1) have the policy ceded into their own name, so that the entire policy, including prior employer contributions, become the property to the member, after the appropriate tax has been paid; (2) pay income tax according to a specific arrangement for retirement-fund lump-sum benefits, after accounting for the first R300,000, which is tax-free, and arrangement that came into operation in March 2011; or (3) use the policy to purchase a pension.
South Africa
The Republic of South Africa is a country in southern Africa. Located at the southern tip of Africa, it is divided into nine provinces, with of coastline on the Atlantic and Indian oceans...
, the Central Provident Fund is a retirement benefits trust established in 1989 and administered by Sanlam
Sanlam
Sanlam Limited is a financial services group in South Africa with its head office in Bellville in the Western Cape. Established in 1918, the Group demutualised in 1998 and Sanlam Limited then listed on the JSE Limited in Johannesburg and the Namibian Stock Exchange. The Sanlam Group conducts its...
Life Assurance Limited. Provided a member is at least 55 years old when retiring, they may choose three options: (1) have the policy ceded into their own name, so that the entire policy, including prior employer contributions, become the property to the member, after the appropriate tax has been paid; (2) pay income tax according to a specific arrangement for retirement-fund lump-sum benefits, after accounting for the first R300,000, which is tax-free, and arrangement that came into operation in March 2011; or (3) use the policy to purchase a pension.