What every MWRF member needs to know
Published by: Municipal Workers Retirement Fund Date: March 2026
The Two-Pot Retirement System came into effect on 1 September 2024. On 1 March 2026, South Africa entered the third withdrawal window under this system, marking the start of the 2026/27 tax year. If you have not yet made a withdrawal, or if you are considering your third, this is what you need to understand before you act.
How Your Savings Are Structured
Your MWRF fund credit is divided into three components:
Savings Component (One-Third) One-third of all contributions made after 1 September 2024 go into your Savings Component. You may make one withdrawal per tax year from this component. The minimum withdrawal is R2,000. There is no upper limit. You can withdraw the full balance.
Retirement Component (Two-Thirds) Two-thirds of all contributions after 1 September 2024 go into your Retirement Component. This money is locked. It cannot be accessed until you retire, resign, or are retrenched.
Vested Component All savings accumulated before 1 September 2024 remain in your Vested Component. The same rules that applied before the Two-Pot System continue to apply to this component.
Before You Make a Withdrawal
Tax applies to every withdrawal. Any amount withdrawn from your Savings Component is added to your taxable income for that year and taxed at your marginal rate. The higher your income, the more SARS will take. MWRF is required by law to deduct tax before payment. You receive the net amount.
You can only withdraw once per tax year. The South African tax year runs from 1 March to 28 February. That is your limit, regardless of your circumstances.
The minimum withdrawal is R2,000. If your Savings Component balance is below R2,000, you cannot withdraw.
Each withdrawal reduces your long-term growth. Money withdrawn now loses the benefit of compound growth over time. A withdrawal that feels small today can represent a significantly larger amount by the time you retire.
A Word of Caution on Repeat Withdrawals
National data for March 2026 shows that most members who access the Two-Pot System do so repeatedly, with a large proportion withdrawing the full balance of their Savings Component each year. This pattern is of serious concern to the retirement industry.
The Two-Pot System was designed for genuine financial emergencies. It was not designed to be a regular income source. Every time you withdraw, you reduce your retirement savings. Over 15 to 30 years, the cumulative effect of annual withdrawals can be the difference between a comfortable retirement and financial hardship in old age.
Before you submit a claim, ask yourself honestly: is this an emergency? Have I exhausted all other options?
Members Aged 55 or Older on 1 March 2021
If you were 55 or older on 1 March 2021 and remained in MWRF, the Two-Pot System does not automatically apply to you. Your full retirement savings remain in your Vested Component under the old rules. If you wish to participate in the Two-Pot System and access a Savings Component, you must apply to MWRF directly to opt in.
How to Apply for a Two-Pot Withdrawal
- Complete the Two-Pot Withdrawal Form (available below)
- Submit the completed form together with a certified copy of your ID your payslip and your bank confirmation letter
- MWRF will process your application and you will be notified of your status at each stage
Download the Two-Pot Withdrawal Form: https://mwrfund.org.za/forms/
When Will You Be Paid?
We understand that members are waiting for their withdrawals and that financial pressure makes this stressful. Please read the following carefully.
Once your completed application is received by MWRF with all required documents, the following steps take place:
Step 1: Application verification MWRF confirms that all documents are in order. Incomplete applications or missing documents will delay processing. Ensure your ID is certified and your bank confirmation letter is current.
Step 2: Tax directive from SARS By law, MWRF must obtain a tax directive from the South African Revenue Service before any payment can be made. This is not optional. SARS determines the correct tax rate applicable to your withdrawal. This step alone can take some time, depending on SARS processing volumes.
Step 3: Payment Once the tax directive is received, MWRF processes your payment. Payments are made directly to your nominated bank account.
Estimated total processing time: 10 to 15 business days from receipt of a complete application.
If your application is taking longer, it is most likely due to one of the following:
- Missing or expired documents
- A bank account mismatch or unverified banking details
- Delays in the SARS tax directive process, which are outside MWRF’s control
- High application volumes during the March withdrawal window
Please do not resubmit your application if you have already submitted a complete set of documents. Duplicate submissions cause further delays for all members.
What Happens at Retirement or Resignation?
- Your Savings Component may be taken as a cash lump sum, subject to tax.
- Your Retirement Component must be used to purchase a pension (annuity). If the combined value of all three components is below R165,000, after taking account a one third lump sum retirement payment, you may take the full amount in cash.
- Your Vested Component follows the old rules: you may take up to one-third in cash and use the remainder to purchase a pension, unless the value qualifies for a full cash payment.
Common Questions
Can I withdraw from my Retirement Component? No. It is locked until retirement, resignation, or retrenchment.
Can I make more than one withdrawal per tax year? No. One withdrawal per tax year is the legal limit.
Does the Two-Pot System affect my risk benefits? No. Your death, disability, and funeral cover are not affected.
What if I resign before retirement? Your Vested Component becomes accessible at resignation, subject to tax.
Contact MWRF
If you have a specific query about your application or your fund credit balance, contact us directly:
- WhatsApp Chatbot on the MWRF website
Please include your membership number and full name in all correspondence to help us assist you as quickly as possible.
MWRF is registered with the Financial Sector Conduct Authority (FSCA). This post is for general information purposes only and does not constitute financial advice. Members are encouraged to consult a registered financial adviser before making withdrawal decisions.
