Tax on withdrawals taxable component

The taxable component may contain two elements – a taxed element and an untaxed element. A lump sum payment generally only contains an untaxed element if the benefit is paid from a government fund (such as the ESSS Defined Benefit Fund). Lump sums paid from the Accumulation Plan will not contain an untaxed element.

When you withdraw money from your account, it is withdrawn proportionately from the tax free and taxable components of your benefit based on the value of these components at the date of your withdrawal.