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BL Premium reports that a bill overhauling SA’s retirement regime was adopted by all parties in the National Assembly on Tuesday, though several MPs warned of the danger of workers withdrawing too much money from their retirement funds, thus depleting their resources for retirement.
In adopting the Revenue Laws Amendment Bill, which provides for the introduction of a so-called two-pot system on 1 September, MPs also urged retirement fund administrators to educate their members about the new system so they properly understood its implications for their savings. The bill will enable financially distressed workers access to a portion of their retirement savings without having to resign their jobs as they have been doing, with the bulk of their savings being retained in the fund for retirement. The bill underwent extensive public participation. The retirement industry supported it, though it objected to the earlier implementation date proposed by the committee. The early passage of the bill through parliament is critical to give fund administrators certainty about the legal framework for the new system as they will have to change fund rules to accommodate it. A second phase of retirement fund reform is envisaged by the National Treasury to allow retrenched workers access to some of their retirement funds after the introduction of the two-pot system.
- Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)
Get other news reports at the SA Labour News home page