The Mercury reports that the country’s two biggest trade union federations have welcomed moves to introduce the “two-pot” retirement system which would allow workers to be able to access at least a third of their pensions while they are still employed.

Saftu and Cosatu said the proposal would provide much-needed relief to many workers who were already battling to make ends meet. The National Treasury and SA Revenue Service (Sars) last week published for public comment the revised 2023 Draft Revenue Laws Amendment Bill and the 2023 Draft Revenue Administration and Pension Laws Amendment Bill. The draft bills provide the necessary legislative amendments required to implement the first phase of the “two-pot” retirement system. Members of the public have until 15 July to comment on the bills, which, if passed, will see the system being rolled out next year. Saftu spokesperson Trevor Shaku pointed out that they had been advocating for such a system. He noted how workers had been battling to cope with rising living costs, especially in the past three years, so “the ability of workers to be able to access some of their money is a significant way in which their plight can be dealt with because things are very tough at the moment.” Cosatu said it believed that the move would ease the debt burden, but workers should settle their debts first before attending to other matters with the money. Cosatu spokesperson Sizwe Pamla said: “The federation appreciates the move and believes that once this money enters the economy it will stimulate demand and serve as some form of stimulus.”

• Read the full original of the report in the above regard by Sibusiso Mboto at The Mercury
• See too, Treasury releases draft rules of two-pot retirement system for public comment, at EWN

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