BusinessLive reports that President Cyril Ramaphosa has enacted the Pension Funds Amendment Bill, paving the way for the two-pot retirement system to be implemented on September 1.
The signing of the bill into law provides legal certainty to the retirement industry, which has been preparing for these changes. This new system allows retirement fund members to access part of their savings without resigning or cashing out their entire pension funds. The new law complements the Revenue Laws Amendment Act, which Ramaphosa signed in June. The Pension Funds Amendment Act modifies the Pension Funds Act, the Post and Telecommunications-Related Matters Act, the Transnet Pension Fund Act, and the Government Employees Pension Law. According to a statement from the Presidency, “The act requires pension funds to amend their rules, adjust their investment portfolios, and prepare administrative systems for members to apply to access portions of their pension funds starting September 1, 2024.” Retirement funds cannot permit withdrawals unless their rule amendments have been registered.
Cosatu acting national spokesperson and parliamentary coordinator Matthew Parks welcomed the change, stating: “The pension laws were overly inflexible, only allowing workers access to their pension funds upon retirement, job loss, or resignation. As a result, many workers would resign to cash out their entire pension funds, leaving them both unemployed and without savings.”
Read the full original of the report in the above regard by Linda Ensor at BusinessLive
