Taxation
Withdrawal Benefit (resignation)
Any portion of your benefit that you choose to take in cash will be taxed as follows:
| Lump sum Amount | Rate of Taxation |
| R0 - R25 000 | 0% of taxable income |
| R25 001 - R660 000 | 18% of taxable income above R25 000 |
| R660 001 - R990 000 | R114 300 + 27% of taxable income above R660 000 |
| R990 001 + | R203 400 + 36% of taxable income above R990 000 |
A person may only receive a total of R25 000 tax-free once before retirement. Therefore, if you withdraw again from another fund, the amount already received as a tax-free portion previously will be taken into account.
If you transfer your withdrawal benefit to a retirement annuity, another retirement fund, or a preservation fund, it will not be taxed.
Retirement, Retrenchment or Redundancy Benefit
Any portion of your benefit that you choose to take in cash will be taxed as follows:
| Lump sum Amount | Rate of Taxation |
| R0 - R500 000 | 0% of taxable income |
| R500 001 - R700 000 | 18% of taxable income above R500 000 |
| R700 001 - R1050 000 | R36 000 plus 27% of taxable income above R700 000 |
| R1 050 000 and above | R130 500 plus 36% of taxable income above R1050 000 |
Any benefit previously received tax-free will be deducted from the tax-free amount.
Death Benefit
Any portion of your benefit that you choose to take in cash will be taxed as follows:
| Lump sum Amount | Rate of Taxation |
| R0 - R500 000 | 0% of taxable income |
| R500 001 - R700 000 | 18% of taxable income above R500 000 |
| R700 001 - R1050 000 | R36 000 plus 27% of taxable income above R700 000 |
| R1 050 000 and above | R130 500 plus 36% of taxable income above R1050 000 |
Any benefit previously received tax-free will be deducted from the tax-free amount.
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The Engen Pension Fund’s administration has moved to Alexforbes as from 2 May 2023. The new contact centre number is 0860 109 092 or you can send an email to Engen.pensioners@alexforbes.com
| Payroll Department |
| Telephone: 021 403 1234 Email: hrservices@vivoenergy.com |
| Benefits Counsellor |
| Telephone: 0860 000 381 Email: mymoneymatters@alexforbes.com |
