{"id":60387,"date":"2024-02-01T19:08:35","date_gmt":"2024-02-01T19:08:35","guid":{"rendered":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system"},"modified":"2024-02-01T19:19:44","modified_gmt":"2024-02-01T19:19:44","slug":"south-africa-takes-a-step-closer-to-new-two-pot-retirement-system","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system","title":{"rendered":"South Africa takes a step closer to new two-pot retirement system"},"content":{"rendered":"

Africa-Press – South-Africa. <\/strong><\/span>The Minister of Finance, Enoch Godongwana, has published the much-anticipated Pension Funds Amendment Bill (Pension Bill), which would see the implementation of a two-pot retirement system.<\/p>\n

Godongwana introduced the bill in the National Assembly on January 30, 2024, and it is expected to be finalised by the end of March.<\/p>\n

Legal expert from Bowmans, Deidre Phillips said that the purpose of the Pension Bill is to amend the Pension Funds Act, 1956 (PFA) to insert certain definitions to provide for:<\/p>\n

The introduction of the savings withdrawal benefit;<\/p>\n

The appropriate account of a member\u2019s interest in the savings, retirement and vested components;<\/p>\n

Deductions that may be made.<\/p>\n

\u201cThe proposed amendments to the PFA follow from the publication of the Revenue Laws Amendment Bill (B39-2023), which establishes the so-called \u2018two-pot retirement system\u2019,\u201d said Phillips.<\/p>\n

\u201cIt is expected that the two-pot retirement system will take effect on 1 September 2024, however, we are still awaiting the amendment to the Income Tax Act, 1962, by the Revenue Laws Amendment Act,\u201d she added.<\/p>\n

The Standing Committee on Finance (SCoF) is set to meet on February 6, to receive a briefing by the National Treasury on the Pension Bill. Additionally, further meetings are scheduled for the ScoF on the 12, 19th, and 26th of March respectively. These are for public hearings on the bill to take place, allow for responses by the National Treasury, and the possible consideration and adoption of ScoF\u2019s report.<\/p>\n

\u201cWhilst the schedule is subject to change, it appears that there is at least the intention to have the Pension Bill finalised towards the end of March 2024,\u201d said Philips.<\/p>\n

Rael Bloom, an investment specialist from Coronation, said that while the \u201csystem should result in better retirement outcomes for members in the long term\u201d, \u201cif the system is not implemented properly, then there is a risk of member discontent, which could undermine confidence in the retirement industry.\u201d<\/p>\n

These include implementation\/execution, initial seed capital payment, and sustainability risks.<\/p>\n

Phillips said that the debate has arisen as to whether it is possible for private and public sector retirement funds to implement the two-pot retirement system \u201cbearing in mind that we are yet to see the final legislation.\u201d<\/p>\n

She said that this includes the \u201cIncome Tax Act, 1962, as amended, \u201cwhich is the first step towards implementing the two-pot retirement system; the final PFA which is necessary for private sector retirement funds to give effect to the two-pot retirement system; as well as other acts applicable to public sector retirement funds.\u201d<\/p>\n

\u201cWhilst the answer to this question largely depends on the legislative developments, there are several proactive steps that can be taken,\u201d including understanding the proposed amendments to the Income Tax Act and the Pension Funds Act, said Philips.<\/p>\n

For More News And Analysis About South-Africa<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – South-Africa. The Minister of Finance, Enoch Godongwana, has published the much-anticipated Pension Funds Amendment Bill (Pension Bill), which would see the implementation of a two-pot retirement system. Godongwana introduced the bill in the National Assembly on January 30, 2024, and it is expected to be finalised by the end of March. Legal expert […]<\/p>\n","protected":false},"author":84,"featured_media":60386,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5],"tags":[274,315,275],"class_list":["post-60387","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","tag-africa-press","tag-africa-press-south-africa","tag-south-africa-2"],"yoast_head":"\nSouth Africa takes a step closer to new two-pot retirement system - South Africa<\/title>\n<meta name=\"description\" content=\"The Minister of Finance, Enoch Godongwana, has published the much-anticipated Pension Funds Amendment Bill (Pension Bill ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Africa takes a step closer to new two-pot retirement system\" \/>\n<meta property=\"og:description\" content=\"The Minister of Finance, Enoch Godongwana, has published the much-anticipated Pension Funds Amendment Bill (Pension Bill ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\" \/>\n<meta property=\"og:site_name\" content=\"South Africa\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-01T19:08:35+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-01T19:19:44+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/02\/sm_1706802440.633395.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1024\" \/>\n\t<meta property=\"og:image:height\" content=\"684\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"South Africa takes a step closer to new two-pot retirement system\",\"datePublished\":\"2024-02-01T19:08:35+00:00\",\"dateModified\":\"2024-02-01T19:19:44+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\"},\"wordCount\":470,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/south-africa\/sites\/31\/2024\/02\/sm_1706802440.633395.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-South-Africa\",\"South-Africa\"],\"articleSection\":[\"all news\",\"economy\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\",\"url\":\"https:\/\/www.africa-press.net\/south-africa\/all-news\/south-africa-takes-a-step-closer-to-new-two-pot-retirement-system\",\"name\":\"South Africa takes a step closer to new two-pot retirement system - 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