Fin24 reports that Parliament's Standing Committee on Finance has pushed back against a recommendation from National Treasury that the implementation of the so-called two-pot retirement system be delayed until 2025, calling instead for it to be rolled out in March 2024.
The two-pot system would allow people to access a third of their pension savings before retirement. On Tuesday, MPs appealed to Finance Minister Enoch Gondongwana, asking for the earlier date to be implemented. DA MP Dennis Ryder called Treasury's decision to delay implementation incredibly disappointing and added: “I think Treasury is bending the knee to the insurance companies. I don’t believe it is a massive, difficult thing to implement." The proposal to delay the two-pot system's implementation was initially made by Treasury to the Standing Committee last month. "Unfortunately the changes that are required to put the system in are substantial, and it will need a lot of time, not only for the industry, but also for SARS," Treasury's Chris Axelson had claimed. Meanwhile, Cosatu spokesperson Matthew Parks welcomed the committee's proposal to implement the new system next year. But Richard Carter of Allan Gray expressed concern over the implications for the industry and investors, saying there would be significant risks to rushing the legislation, and noting that March 2024 would give less than four months for implementation.
- Read the full original of the report in the above regard by Na'Ilah Ebrahim at Fin24
- Read too, Finance MPs defy Treasury’s advice on two-pot retirement system, at BusinessLive (subscriber access only)
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