Question:
I recently resigned at a Retail company, which I had a Retail provident fund. They informed me that I can move ("carry over") my fund into another account so that I do not loose this. I do not want this paid out. Where can I move this account to (alternative solutions)? Can my provident fund at my new work also be paid into that "new" account?
Answer:
Melanie, You can move your old provident fund (tax free) across to your new employer's provident fund, or you can transfer it to a provident preservation fund (also tax free). If you choose the preservation fund, you can, once you resign from your current employer, also transfer (add) the proceeds of that fund to your preservation fund, but you cannot do so while you are still an employee, as your membership of that fund is compulsory.
