2-Pot Claims Processes
Cape Peninsula University of Technology Retirement Fund
Ways to claim
There are 3 ways to submit a savings withdrawal claim, listed below in order of preference:
1. Via AF Connect – first prize!! This is the preferred and most efficient way.
2. Via the employer (HR) – Bulk or individual claims
3. Via an Alexforbes walk-in centre
Savings Claim Submission Process Flow
Member logs into AF
Connect and selects Savings
Withdrawal Complete KBA * questions
Confirm banking details
Verify personal details and confirm addresses Accept disclosures and disclaimers and submit claim Indicate amount to be claimed
* KBA = Knowledge Based Assessment. The KBA is an additional layer of security added to member-initiated savings claims. In the KBAprocess the member is asked a set of personalised questions that only they should know the answers to. The questions are based on data available in the XDS credit bureau's database.
2 POT CLAIM PROCESS ON AF CONNECT
Walk-in Centres
Two Pot | Walk in Centre
Client Enters Building
Client Queue Process for Eligibility Claim Claim
Client is directed to the Alexforbes Reception Desk
Receptionist understands the reason for visit
Client query routed to the correct queue via the visitor management workflow
Client is directed to the waiting room
Self-service Terminal
Documents
When walk-in agent available, call the next client in queue.
Self-service clients with :
1. AFC Registration
2. Eligibility
3. Status Update on Claim
4. Document Request
Device - ability to take a photo and upload onto AFC
Two Pot Walk-in Centre | Infrastructure
- Building of additional walk-in cubicles
- For larger offices, signage will be placed in and around reception area, walk-in centre cubicles, self-service terminals.
- A separate area to house the self-service terminals
Documents Available
1. IsiZulu
2. IsiXhosa
3. Sesotho
4. English
5. Afrikaans
Documents Available for Clients :
1.How to register on AFC
2.How to claim two pot savings
3.Member booklet with generic Two Pot information
Important – please note!!
Documents
Should validation be required, you may be requested to upload proof of banking details or proof of your tax registration number toAF Connect. To avoid any delays, please bring the following documents with you or have copies/photos thereof saved on your cellphone, if you will be using the assistance of Human Capital /Alexforbes either on campus or at their walk-in centre:
• Bank statement not older than 3 months
• Tax registration certificate
• Your ID
Fees
The following fees will apply:
• Saving pot withdrawals between R2,000 and R5,000 will incur the minimum transaction fee of R100.
• Saving pot withdrawals higher than R5,000 will incur a fee equal to 2% of the pre-tax withdrawal amount to a maximum of R600.
Important notes continued…!
Tax
• The savings pot withdrawal will be taxed at your marginal tax rate which is higher than the regular withdrawal tax rate, as can be seen in the tables below:
MARGINAL
TAXABLE INCOME RATES OF TAX
R0 – R237 100 18% of taxable income
R237 101 – R370 500 R42 678 + 26% of amount over R237 100
R370 501 – R512 800 R77 362 + 31% of amount over R370 500
R512 801 – R673 000 R121 475 + 36% of amount over R512 800
R673001 – R857 900 R179 147 + 39% of amount over R673 000
R857 901 – R1 817 000 R251 258 + 41% of amount over R857 900 R1 817 001 + R644 489 + 45% of the amount over R1 817 000
WITHDRAWAL
WITHDRAWALAMOUNT RATES OF TAX
R1 – R27 500 0% of taxable income R27 501 – R726 000 18% of taxable income above R27 500
R726 001 – R1 089 000 R125 730 + 27% of taxable income over R276 000
R1 089 001 and above R223 740 + 36% of taxable income over R1 089 001
Important notes continued…!
Maintenance orders, divorce orders, housing loans & employer compensation claims
• If you any pending issues with any of the of the above, this may cause a delay in the payment process.
SARS
• Alexforbes cannot predict how long SARS will take to issue your tax directive.
• If you have any outstanding issues with SARS, this may delay the process.
Minimum withdrawal amount
You will not be able to make a withdrawal if you have less than R2 000 in your savings pot on 1 September 2024
To
summarise:
• The claims process is not as simple as pressing a button;
• You will not receive the money immediately;
• It may take up to a few days to process your claim, depending on your individual circumstances.
• Alexforbes cannot at this stage indicate an exact time period from date of claiming to date of payment.
• The 2 pot system is completely new to the retirement fund industry;
• The time period can only be assessed once the system is implemented, although Alexforbes is currently hard at work updating all their systems to ensure a smooth and efficient claims process.
Disclaimer
The following businesses are licensed financial services providers:
Alexander Forbes Financial Services (Pty) Ltd (FSP 1177 and registration number 1969/018487/07) Alexander Forbes Investments Limited is a licensed financial services provider (FSP 711 and registration number 1997/000595/06).
While care has been taken to present correct information, Alexforbes and its directors, officers and employees take no responsibility for any actions taken based on this information, all of which require financial advice.
The information in this document belongs toAlexforbes. You may not copy, distribute or modify any part of this document without the express written permission ofAlexforbes.
Design: 19095Alexander Forbes Communications | Getty Images (imagery)