The Citizen reports that National Treasury has advised the public against contacting their retirement funds in an attempt to request a partial withdrawal of pension funds as the law did not currently allow that.

On Wednesday, Treasury said that the partial withdrawal or retirement funds was not happening presently as legal processes needed to be followed first. It advised that a further announcement on the proposed measures for comment and consideration would be made during the medium term budget policy statement. “Any legislative changes to pension fund withdrawal would first require a comprehensive public consultation process, changes to fund rules and period of preparation by fund administration. Retirement funds are primarily designed to encourage individuals to save while working to finance consumption later during retirement,” the Treasury advised in a statement. It said that the redesigning of the retirement system to allow for limited withdrawals with mandatory preservation was complex and required thorough consultations. Treasury further explained that: “The government has been engaging with trade unions, retirement funds, regulators and other stakeholders to discuss how to increase savings and improve preservation and allow limited withdrawals, without creating liquidity and investment risks.”

• Read the full original of the report in the above regard by Siyanda Ndlovu at The Citizen

Get other news reports at the SA Labour News home page