New laws for state bank and pension changes sent to Ramaphosa to be signed

The National Council of Provinces (NCOP) has passed both the South African Postbank Limited Amendment Bill and the Financial Matters Amendment Bill.

Both bills have been in the pipeline for a while, undergoing the legislative process, and are now waiting for President Cyril Ramaphosa to sign them into law.

Parliament said that the South African Postbank Limited Amendment Bill (Postbank Bill) aims to make changes to the South African Postbank SOC Act by addressing risks currently associated with the current structure of the Postbank, where the South African Post Office is the sole owner and shareholder.

“The bill also seeks to amend other sections of the Act affected by the changes in the reporting structure and to establish a new holding company for the Postbank. These changes will facilitate Postbank’s registration as a Bank Controlling Company, allowing it to operate as a full-fledged bank,” said Parliament.

President Cyril Ramaphosa said that licensing the Postbank would allow for a state bank to be created. Speaking during his State of the Nation Address earlier this year (9 February), Ramaphosa said that a state bank in the country would provide financial services to SMME as well as youth and women-owned businesses.

According to Ramaphosa, the state bank would provide a viable and affordable alternative to commercial banks

The second bill passed by the NCOP is the Financial Matters Amendment Bill which includes multiple amendments to various pension-related, monetary and auditing provisions. Existing laws that will be changed other this new bill include:

• Associated Institutions Pension Fund Act
• Temporary Employees Pension Fund Act
• Military Pensions Act
• Government Employees Pension Law
• Financial and Fiscal Commission Act
• Land and Agricultural Development Bank Act (Land Bank Act)
• Auditing Profession Act
• Auditing Profession Amendment Act

Some notable amendments under the bill relate to pensions.

Parliament said that changes in the bill address issues in the Military Pensioners Act, aiming to rectify past discrimination against life partners of military pensioners.

“The changes will allow life partners to claim benefits retrospectively from the date the amendment took effect,” said Parliament.

It added that the bill also includes an amendment to the Government Employees Pension Fund (GEPF) to simplify administration and apply the “clean-break” principle to members of the Associated Institutions Pension Fund (AIPF).

“This principle ensures that a spouse of a GEPF member can claim their pension interest immediately upon divorce or dissolution of a customary marriage without having to wait for the member’s entitlement to a portion of the pension.”

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