Pension/provident fund payout after retrenchment

My husband was retrenched last year November 2015, he is still without a job and his pension/provident fund need to pay out, on you free SARS retirement fund lump sum tax calculator is shows that if you take the money after retirement/retrenchment/death you don't pay TAX on a amount under R500 000. 00, is that correct?

If he was retrenched then yes, he would be subject to the better rates and R500 000 initial amount exemption.