BL Premium reports that the Treasury has taken the necessary steps to ensure that public sector pension funds are incorporated into the two-pot retirement system that will come into effect on 1 September.

It has published proposed amendments to three acts — the Government Employees Pension Law, the Post and Telecommunications-related Matters Act and the Transnet Pension Fund Act — to enable the members of those pension funds to benefit from the two-pot system, which will allow workers to withdraw money from their savings on implementation of the system and once a year thereafter. These pension funds were not included in the Revenue Laws Amendment Bill which provides for the two pot system and which has been adopted by the National Assembly. The two-pot system provides for a savings pot and a retirement pot into which one third and two thirds of contributions respectively will be paid. Treasury explained that the amendments to the public sector pension laws would be proposed for inclusion in the Pension Funds Amendment Bill, which is currently under the consideration of the standing committee on finance. Cosatu’s Matthew Parks welcomed the move saying it was critical that all workers be included in the two pot system, which was something the labour federation had been calling for for years.

• Read the full original of the report in the above regard by Linda Ensor at BusinessLive (subscriber access only)

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