Shariah Retirement Annuity Transfer and Underlying-Fund Checklist

A retirement annuity is a South African tax and retirement wrapper; Shariah suitability depends on the investments, cash handling, fees and governance inside it. Transfers add another layer because ownership, provider records and market exposure must remain continuous.

Educational information only: This is not retirement, tax, legal or Shariah advice. Obtain current provider information and personalised advice from appropriately authorised and qualified professionals.

1. Identify the existing contract

Record the fund, administrator, policy or account number, member details and start date. Keep the latest statement, rules and signed application.

2. Confirm the proposed destination

Capture the receiving fund, administrator, product type and investment options. Verify the legal entities rather than comparing brand names alone.

3. State the reason for transfer

Document the member’s objective, concerns and alternatives considered. A transfer should solve a defined problem instead of merely following recent performance.

4. Obtain transfer values

Request the current fund value, any disinvestment adjustment, fees and the date to which figures apply. Reconcile the amount transferred with both providers’ statements.

5. Map the transfer process

Record forms, approvals, expected stages and responsible contacts. Keep evidence of submission, acceptance, disinvestment, payment and investment.

6. Track time out of market

Ask when assets will be sold and when the receiving investment will be placed. Record any period held in cash and how that cash is treated.

7. Review the underlying funds

List each portfolio, mandate, benchmark and asset allocation. The retirement wrapper does not make every available fund Shariah compliant.

8. Collect Shariah evidence

Retain the current screening methodology, certificate or governance report for every selected underlying fund. Record scope, date and reviewer.

9. Examine uninvested cash

Ask where contributions and transfer proceeds wait before investment, whether income accrues and how any impermissible amount is handled.

10. Reconcile all fees

Separate advice, administration, platform, investment-management and transaction fees. Compare total costs on the same assumptions and time period.

11. Check contribution instructions

Confirm debit orders, employer payments and ad hoc contributions after transfer. Avoid missed or duplicated payments during the changeover.

12. Review nominations and estate records

Update dependant and nominee information with the provider and keep confirmation. Coordinate records with the household’s estate file while recognising that applicable retirement-fund law governs benefit allocation.

13. Prepare tax evidence

Retain contribution certificates and transfer documents for a registered tax practitioner. Verify current SARS treatment rather than assuming every movement is neutral.

14. Test access and service continuity

Confirm online access, statements, support contacts and escalation routes. Check that the member can retrieve records after the old account closes.

15. Complete the post-transfer review

• Old and new provider balances reconcile

• Selected funds match the mandate

• Fees and cash treatment are confirmed

• Shariah evidence remains current

• Contributions and nominations are active

Useful official starting points include FSCA regulated-entity information, SARS retirement-fund guidance and the Pension Funds Act.

The completed register should show why the transfer was made, where the money moved, how it was invested and what evidence supports the regulatory, tax and Shariah review.