Nandi Ntini
The two-pot retirement system officially kicks in [in] September 1 and is aimed at cushioning the financially burdened workers by allowing them to withdraw from their retirement funds.
The two-pot retirement system officially kicks in [in] September 1 and is aimed at cushioning the financially burdened workers by allowing them to withdraw from their retirement funds.
President Cyril Ramaphosa has officially signed the new Pension Funds Amendment Bill which will enable workers to at least have access to their pension funds once a year.
The two-pot retirement system officially kicks in [in] September 1 and is aimed at cushioning the financially burdened workers by allowing them to withdraw from their retirement funds. In the current system, workers can only access their pension or provident fund when they resign or change jobs.
“One-third of retirement contributions will be split into a savings component and two-thirds into a retirement component. The ability to unconditionally access amounts from the ‘savings component’ will be provided without the member having to cease employment or having to resign. A member will be allowed to make a single withdrawal within a year of assessment,”
Presidential spokesperson Vincent Magwenya
“One-third of retirement contributions will be split into a savings component and two-thirds into a retirement component. The ability to unconditionally access amounts from the ‘savings component’ will be provided without the member having to cease employment or having to resign. A member will be allowed to make a single withdrawal within a year of assessment,” explained presidential spokesperson Vincent Magwenya yesterday.
The two-pot retirement system is for any South African who has a pension fund, provident fund, retirement annuity, or preservation fund. It excludes legacy retirement annuity funds, beneficiary funds, unclaimed benefit funds and pensioners.
It also excludes those who were 55 years or older on March 1 2021 and have remained a member of the same provident fund.
“The assets in the ‘retirement component’ will be required to be preserved until retirement [for example] withdrawals from this component can only be accessed by the member upon retirement as per the fund rules.
“Once a member has reached retirement age and retires, the ‘retirement component’ is to be paid in the form of an annuity (including a living annuity),” said Magwenya.
NEWS2
