15 September 2023 – Prior to 1 March 2023 a member of a retirement annuity fund could only transfer all the contracts / policies in that retirement annuity fund to only one other retirement annuity fund.
With effect from 1 March 2023 the definition of “retirement annuity fund” was amended to provide a member with more than one contract / policy in a retirement annuity fund can now transfer one or more of these contracts / policies to another approved retirement annuity fund, subject to the following conditions:
- The transfer value of the member’s interest must exceed R371 250 per contract / policy. Therefore, the value of each contract / policy must be equal to or more than R371 250 to be able to split the transfer to multiple approved retirement annuity funds. If any of the contracts / policies value is less than R371 250 the member cannot transfer to more than one retirement annuity fund.
- If the total member’s interest is not transferred, the amount remaining in the retirement annuity fund must exceed the amount of R371 250.
The monetary restriction of R371 250 will not be applicable per transferring contract / policy when the member’s entire interest in one retirement annuity fund is transferred to another retirement annuity fund (i.e. not transferred to more than one retirement annuity fund).
Tax directive system and application forms enhancements
Form C retirement annuities
- The tax directive system and the Form C tax directive application form was enhanced to allow up to four contract/policy to be transferred to multiple approved retirement annuity approved funds.
- The tax directive system will reject a tax directive application if:
- The amount to be transferred is split in such a way that the value of each contract/policy does not exceed R371 250; and/or
- The remaining amount in the retirement annuity fund does not exceed the amount of R371 250, in circumstances where the member’s vested interest is not transferred in full.
Recognition of Transfer (ROT) decline message
A significant number of ROT’s are outstanding. Therefore, some of the ROT rejection error messages have been updated to provide more detail as to why the ROT submission was rejected, to help the Fund Administrators and Long-term Insurers to better understand the reason for the rejection and to assist in the submission of the ROT’s.
The following Guides and Forms were updated:
- IT-AE-41-G02 – Guide to Complete the Lump sum Tax Directive Application Forms – External Guide
- IT-AE-41-G03 – Guide to Complete Submit and Cancel a Recognition of Transfer – External Guide
- FORM-AD – Request for Tax Deduction Directive Pension and Provident Funds – External Form
- FORM-B – Request for Tax Deduction Directive Pension and Provident Funds – External Form
- FORM-C – Request for Tax Deduction Directive Retirement Annuity Funds – External Form
- FORM-E – Tax Deduction Directive After Retirement and Death Annuity Commutations – External Form
- IRP3(a) – Application for Tax Directive Gratuities – External Form
- IRP3(c) – Application for Tax Directive Fixed Amount – External Form
- IRP3(q) – Variation of Employees Tax – External Form
- IRP3(s) – Application for Tax Directive Share Option – External Form
- NR03 – Tax Directive Application by Non Resident Seller of Immovable Property in SA – External Form
- ROT01 – Recognition of Transfer Between Approved Funds – External Form
- ROT02 – Recognition of GN18 Purchase of Member or Beneficiary Owned Pension or Annuity – External Form