What are the restrictions on the types of withdrawals allowed to be made in the form of investments? What is the rationale for these restrictions?

Withdrawals in the form of investments are not allowed in the following conditions:

a. Withdrawals on the grounds of bankruptcy

b. Withdrawals before the statutory retirement age

c. Withdrawals of contributions in excess of the SRS contribution cap

Withdrawals on the grounds of bankruptcy should be made in cash in view of the need for immediate cash to make debt repayments.

As we wish to encourage members to keep their savings for their old age, the flexibility to make withdrawals in the form of investments would not be extended to withdrawals made before the statutory retirement age. Early withdrawals would only be allowed in the form of cash, are fully subject to tax, and attract a 5% penalty.

Withdrawals of contributions in excess of the SRS contribution cap would be made as if the member has not contributed, hence such withdrawals would also be made in cash.