Alexforbes estimates that at least R270m of their members' two-pot retirement system payouts will be paid to SA Revenue Service (Sars).
The fund said they had received and processed 78,000 claims from their members by Monday with a total value of R1,5bn.
“These claims are at various stages, including awaiting Sars directives, completing bank validations, with many payments being processed. As SA’s largest retirement fund administrator, Alexforbes has received and processed the highest volume of claims in the industry. We expect this level of activity to continue in the coming weeks,” said Lorna Harrington, spokesperson for the fund.
She said the 78,000 two-pot system pension withdrawals are equivalent to the number of claims the company processed over six months before the new legislation. The two-pot system, which kicked off last week, allows workers to withdraw once a year from their provident and pension funds.
Several pension fund administrators have told Sowetan of the influx of applications from desperate workers seeking a portion of their money. Withdrawals can take up to 20 working days to process due to several factors, including Sars directives, bank validations and the extremely high volume of requests.
“Since the two-pot retirement system’s go-live date on September 2, we have seen a significant number of members successfully using the Liberty Corporate Benefits chat on WhatsApp to determine their eligibility and process a savings withdrawal benefit claim,” said Gurschulle Neethling, divisional executive: operations at Liberty Corporate Benefits.
“This significant reform marks one of the largest changes ever seen in the sector and it has been a mammoth task to implement... Despite initial challenges, Alexforbes, along with the rest of the industry, is working through an unprecedented level of claims. The initial number and value of claims have far exceeded expectations, landing at the upper end of our forecasts. We anticipate that at this rate we can expect a positive impact of between 0.3% and 0.7% of GDP this year as set out in recent research published by Sars,” said Harrington.
SowetanLIVE
Sars to pocket R270m from Alexforbes’ two-pot retirement system payouts
Fund administrator has processed 78,000 claims to date
Image: Supplied
Alexforbes estimates that at least R270m of their members' two-pot retirement system payouts will be paid to SA Revenue Service (Sars).
The fund said they had received and processed 78,000 claims from their members by Monday with a total value of R1,5bn.
“These claims are at various stages, including awaiting Sars directives, completing bank validations, with many payments being processed. As SA’s largest retirement fund administrator, Alexforbes has received and processed the highest volume of claims in the industry. We expect this level of activity to continue in the coming weeks,” said Lorna Harrington, spokesperson for the fund.
She said the 78,000 two-pot system pension withdrawals are equivalent to the number of claims the company processed over six months before the new legislation. The two-pot system, which kicked off last week, allows workers to withdraw once a year from their provident and pension funds.
Several pension fund administrators have told Sowetan of the influx of applications from desperate workers seeking a portion of their money. Withdrawals can take up to 20 working days to process due to several factors, including Sars directives, bank validations and the extremely high volume of requests.
“Since the two-pot retirement system’s go-live date on September 2, we have seen a significant number of members successfully using the Liberty Corporate Benefits chat on WhatsApp to determine their eligibility and process a savings withdrawal benefit claim,” said Gurschulle Neethling, divisional executive: operations at Liberty Corporate Benefits.
“This significant reform marks one of the largest changes ever seen in the sector and it has been a mammoth task to implement... Despite initial challenges, Alexforbes, along with the rest of the industry, is working through an unprecedented level of claims. The initial number and value of claims have far exceeded expectations, landing at the upper end of our forecasts. We anticipate that at this rate we can expect a positive impact of between 0.3% and 0.7% of GDP this year as set out in recent research published by Sars,” said Harrington.
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