Deciding on the best option can be complicated and you should consult your financial advisor to ensure that you fully understand the implications of any decision you make. For further information regarding appointing a financial advisor and preferential rates offered to UCTRF members click here.

Leave your benefit in the UCTRF as a Deferred Pensioner

If you leave your money in the UCTRF, you may receive your Retirement Benefit at any time from age 55 onwards. Alternatively, you may transfer your Accumulated Retirement Savings to another fund or take your benefit in cash at a later date.

Your Accumulated Retirement Savings will remain invested in the portfolio/s of your choice. Administration costs will be deducted from your Accumulated Retirement Savings monthly. You also have the advantage that the Board monitors the performance of the investment managers with whom your money is invested on an ongoing basis. Should you elect this option you will be required to preserve your benefit as a whole, i.e. you may not take a portion in cash and leave the balance in the UCTRF.

Take your money in cash

This is a tempting option for most of us; however, this might mean the difference between a retirement of leisure and one filled with financial worries.  If you take your money in cash, you may also pay a significant amount of tax, as only a small portion is tax free. Please refer to the Taxation of Benefits section.

Transfer your money to your company's fund

Transferring your money from the UCTRF to your new company’s fund on withdrawal is tax free.

Your Vested Share in the UCTRF will be allocated to your Vested Share in your new company’s fund and your Non-Vested Share in the UCTRF will be allocated to your Non-Vested Share in your new company’s fund.

Transfer your money to a Retirement Annuity Fund

Transferring your money from the UCTRF to a retirement annuity fund on withdrawal is tax free. There is a range of retirement annuity funds to choose from with an assortment of different investment options.  Speak to your financial advisor on the different options available to you. 

Your Vested Share in the UCTRF will be allocated to your Vested Share in your retirement annuity fund and your Non-Vested Share in the UCTRF will be allocated to your Non-Vested Share in your retirement annuity fund.

You may make monthly contributions towards a retirement annuity, which are tax deductible up to certain limits.

Transfer your money to a Preservation Fund

You may decide to transfer your benefit from this Provident Fund to a Preservation Fund.  This is a tax-free transfer.  There is a range of Preservation Funds to choose from with an assortment of different investment options.  Speak to your financial advisor on the different options available to you. 

Your Vested Share in the UCTRF will be allocated to your Vested Share in your Preservation Fund and your Non-Vested Share in the UCTRF will be allocated to your Non-Vested Share in your Preservation Fund.

You can retire from a Preservation Fund between the ages of 55 – 70 years. You may not make monthly contributions towards a Preservation Fund.

You can transfer from one Preservation Fund to another, but there are costs involved.

The main disadvantage of this option is that your costs may be higher when compared to leaving your money in the UCTRF.  You could pay commission at entry and the ongoing administration fee could be as high as 0,5% per annum of the market value of your assets. The investment management fee could be as high as 1,5% per annum of the market value of your investment. 

You (or your financial advisor) also need to monitor the performance of the investment managers with whom your money is invested on an ongoing basis.

Differences between the various options