Advice and Support for South Africans Immigrating to New Zealand

South Africans Going To New Zealand

Author Topic: Retirement Anuity  (Read 6699 times)

Offline ANTONK

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Re: Retirement Anuity
« Reply #30 on: September 20, 2008, 07:42:36 pm »
Thanks - keep us posted  O0

Offline texant6

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Re: Retirement Anuity
« Reply #31 on: September 29, 2008, 01:52:36 pm »
Hey all

There are changes coming to the Tax laws, as I understand it, effective 1 Jan 2009, which will allow you to take your money out of the RA's and Pension funds if you emigrate.  The Taxations Laws and Amendments Act was approved 22 July.    See exerpt from financial article about this 

•  Emigration: this has been one of the most contentious issues affecting people who have left SA.
When their retirement funds fall due, they often experience difficulty associated with their South African annuities if they are no longer taxpayers or do not still have local bank accounts.
A significant recent change is that if a person emigrated before retirement that member may surrender the retirement annuity and redeem the entire fund.
No longer will the person be forced to buy a pension. However, the fund will have to satisfy itself that the member has formally emigrated.
The benefit payable will be subject to tax, and also all the normal foreign exchange requirements.

Most financial advisors are not aware of this...

SA Going to NZ Advice Forum

Re: Retirement Anuity
« Reply #31 on: September 29, 2008, 01:52:36 pm »

Offline ANTONK

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Re: Retirement Anuity
« Reply #32 on: September 29, 2008, 06:00:45 pm »
Thanks texant - sounds to good to be true  :confused: but will check with my advisor to check this out and will let people know asap  O0

Offline ANTONK

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Re: Retirement Anuity
« Reply #33 on: September 29, 2008, 06:09:49 pm »
Just spoke to my advisor and he will send me an email concerning this as SARS don't have a full running system on this - so hang in there everybody till I get the email which will be in about two days time  O0

O sorry welcome to the family texant  :clap: and go to the Howzit section and introduce yourself there and tell us a bit more about yourself  O0  :gl:

Offline ANTONK

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Re: Retirement Anuity
« Reply #34 on: October 01, 2008, 06:13:56 pm »
26 September 2008   The Implications of the Taxation Laws Amendment Act  The Taxation Laws Amendment Act 3 of 2008 came into effect on 22 July this year and has some far reaching implications for financial advisers.   Summary: *   Clients may withdraw from their retirement annuities prior to age 55 in the case of emigration *   Clients may remain a member of their retirement annuities after attaining age 70*   Applications for Preservation Funds no longer require a participating employer *   Living Annuities to pay lump sum on death of annuitant irrespective of source of funds For a more detailed discussion of these highlights, please see below. Can my client withdraw from his Retirement Annuities before the age of 55,if he emigrates? The changes to legislation now provide that a client may indeed withdraw from his Retirement Annuities if he emigrates, if he has not yet reached age 55.  In order to proceed with the withdrawal, the client must be able to prove formal emigration ie: his emigration must be recognised by the South Africa Reserve Bank for the purposes of exchange control. The benefit may be subject to tax depending on the specific circumstances of the member. Although the legislation has been passed and is effective, it may be sometime until we are actually able to give effect to the new rules. Fund rule amendments will need to be passed in order to permit these withdrawals.We will also need to wait for SARS to publish processes which will prescribe exactly how these withdrawals will be done. My client has reached age 70, but is not yet ready to retire. May he remain a member of his Retirement Annuity Fund or is he forced to retire from the fund at age 70?  The upper limit of age 70 has been lifted. Clients may therefore retire at any age after age 55 but may remain in the fund after reaching age 70.  This is ideal for clients who have reached age 70 and are either still working or are not yet ready to retire from their retirement annuities.Due to increased longevity and the fact that in general provision for retirement is not always sufficient for clients to retire by age 70, this is a welcome change. Does the Taxation Laws Amendment Act make any changes to the law governing Preservation Funds? Most definitely! There are some significant changes to the laws governing preservation funds.  Probably the most important change from a marketing perspective is the fact that the requirement for a participating employer has been done away with.This is a relief as this contentious issue was often a barrier to the client being able to transfer his funds to a preservation fund. Remember however that in terms of GN 35 and Addendum C the client will still need to transfer his benefits to the preservation fund within 6 months of leaving service. What are the implications of this legislation on Linked Life Annuities? The above legislation has now indicated that we no longer need to identify the source of funds invested into the Linked Life Annuity. The impact of this change is not only that the administrative burden will be lifted,but also that in all circumstances beneficiaries may elect to receive a lumpsum from a Linked Life Annuity. To put this into perspective you will recall that in a previous issue of Legal Focus we explained that beneficiaries could not receive a lump sumwhere: *   The source was originally a retirement annuity or *   Where the source was unknown and could not be proven not to be from a retirement annuity  In these cases the beneficiary was entitled to commute only 1/3 of the proceeds and the balance would be invested in an annuity. Now in all circumstances beneficiaries will be able to choose between receiving a lumpsum and investing in an annuity which will pay them a regular income.This is ideal for the beneficiaries, as it gives them far more flexibility and allows them to select an option which is most appropriate for their circumstances at the time. In addition the fact that the source is now irrelevant allows the client to combine funds from various sources into one Linked Life Annuity. This consolidated approach is much easier for both the client and the financial adviser to manage. The Act also makes reference to the fact that living annuities below a certain level will be commutable. The value will be gazetted (but some players in the industry claim that SARS/National Treasury has stated verbally that it will be R75 000 or R50 000). The fact is that the amount remains to be finalised but we can expect that it will be gazetted shortly.Once again this is a positive move as clients receiving a minimal income from their Linked Life Annuities will now be able to commute the annuity. The above discussion clearly indicates the significant changes that are taking place in the financial planning environment at the moment. We are currently in the process of amending our fund rules as well as our business processes to give effect to these changes as soon as possible. The Draft Revenue Laws Amendment Bill is currently under discussion as well and promises to bring even more changes in 2009.  Please remember to send your compliments or complaints tolegalfocus@liberty.co.za. All legal queries can still be sent to your regional Legal Marketing Specialist listed below.   Name  Region  Contact Number  E-mail address   Emile Hofmeyr Pretoria and Mpumalanga 083 556 0145 emile.hofmeyr@liblink.co.za  Tonie Grobler Pretoria, Limpopo and North West 084 602 9386 tonie.grobler@liberty.co.za  Freddie Rorich Bloemfontein/Northern Cape 083 257 4575 freddie.rorich@liberty.co.za  Rudi Jansen van Vuuren Bloemfontein/Northern Cape 082 563 6543 rudi.jansenvanvuuren@liberty.co.za   Presha Gunpath KZN/Eastern Cape 083 275 1878 presha.gunpath@liberty.co.za  Eric Jordaan KZN/Eastern Cape 082 824 8425 eric.jordaan@liberty.co.za  Geraldine Macpherson Gauteng 083 275 7444 geraldine.macpherson@liberty.co.za  Michelle Human Gauteng 083 275 2403 michelle.dubois@liberty.co.za  Jackie Govender Western Cape (Cape Town) 083 461 7121  jackie.govender@liberty.co.za  Denver Keswell Western Cape  083 443 9952 denver.keswell@liberty.co.za  Thami Ngwenya  Gauteng 084 691 8496 thami.ngwenya@liberty.co.za Regards, The Legal Marketing Team    _____    This has been sent from Newsbreak@Liberty.   'Liberty Life - an Authorised Financial Services Provider (licence no.2409)'

Sorry for the long post guys & gals - this is as I got it from my broker - hope it helps  O0
The only edit I did was spaces between the words after I paste it  ;)
« Last Edit: October 01, 2008, 08:25:53 pm by ANTONK »

Offline Amber

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Re: Retirement Anuity
« Reply #35 on: October 01, 2008, 08:06:46 pm »
Thanks AntonK, this is good news for us cause we left quite a bit behind in RA's.  But how do we make the reserve bank acknowledge our emmigration?  Would it be through tax clearance?  Two of our RA's are with Liberty so I am going to drop them an e-mail
Amber
Faith is to believe what you do not yet see; the reward for this faith is to see what you believe



Offline Feather

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Re: Retirement Anuity
« Reply #36 on: October 01, 2008, 09:13:38 pm »
 :clap: :clap: WOW this is really good news for us... We formally emigrated...

Amber, we officially emigrated so we had to do tax clearance, complete forms with the bank, had to hand over our policies so that they were aware of them for when the money would eventually pay out. If your read
http://www.reservebank.co.za/internet/Publication.nsf/LADV/54B3A11AEAF475CE422574570033A5EC/$File/T.pdf   on exchange controls emigrant facilities

SA Going to NZ Advice Forum

Re: Retirement Anuity
« Reply #36 on: October 01, 2008, 09:13:38 pm »

Offline ANTONK

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Re: Retirement Anuity
« Reply #37 on: October 02, 2008, 05:08:09 pm »
LSS is not going to work till it's official  :'(