{"id":759169,"date":"2024-03-11T16:31:42","date_gmt":"2024-03-11T14:31:42","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=759169"},"modified":"2024-03-11T16:31:48","modified_gmt":"2024-03-11T14:31:48","slug":"big-step-for-south-africas-new-pension-system","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/759169\/big-step-for-south-africas-new-pension-system\/","title":{"rendered":"Big step for South Africa&#8217;s new pension system"},"content":{"rendered":"\n<p>The National Treasury has published proposed amendments to the legislation governing public sector pension funds, essential for launching the incoming two-pot retirement system. <\/p>\n\n\n\n<p>From 1 September 2024, all amounts saved into a retirement fund will be split into a savings and a retirement component (pot). <\/p>\n\n\n\n<p>One-third will automatically go into the savings account and be accessible before retirement. <\/p>\n\n\n\n<p>The remaining two-thirds will only be accessible at retirement and will be used to buy an annuity-providing product. <\/p>\n\n\n\n<p>A third vested component will hold most of the retirement savings until the two-pot system is launched and follows the current legislation. <\/p>\n\n\n\n<p>The initial amount in the savings component will be 10% of the amount saved in the vested component, up to a maximum of R30,000. <\/p>\n\n\n\n<p>To meet the upcoming deadline, which was moved several times by National Treasury and Parliamentary Standing Committee on Finance, the following public sector pension laws have been amended: <\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.treasury.gov.za\/comm_media\/press\/2024\/Government%20Employees%20Pension%20Law%20Proposed%20Amendments%202%20pot%20retirement%20system%2011%20March%202024.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Government Employees Pension Law<\/a>, 1996 (Proclamation 21 of 1996)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.treasury.gov.za\/comm_media\/press\/2024\/Post%20Telecommunications-related%20matters%20Proposed%20Amendments%20two%20pot%20retirement%20system%2011%20March%202024.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Post and Telecommunications-related Matters Act<\/a>, 1958 (Act 44 of 1958)<\/li>\n<\/ul>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.treasury.gov.za\/comm_media\/press\/2024\/Transnet%20Pension%20Fund%20Proposed%20Amendments%20two%20pot%20retirement%20system%2011%20March%202024.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Transnet Pension Fund Act<\/a>, 1990 (Act 62 of 1990)<\/li>\n<\/ul>\n\n\n\n<p>&#8220;The proposed amendments insert certain definitions to provide for the introduction of the savings withdrawal benefit; to provide for the appropriate account of a member\u2019s interest in the savings, retirement, and vested components and to provide for deductions that the funds may make.&#8221;<\/p>\n\n\n\n<p>&#8220;The amendments to the public sector pension laws will be proposed for inclusion in the Pension Funds Amendment Bill [B3\u20142024], which is currently under consideration of the Standing Committee on Finance.&#8221;<\/p>\n\n\n\n<p>&#8220;Parliamentary hearings on the Pension Funds Amendment Bill will be held on 12 March 2024, including these public sector pension laws amendments,&#8221; said National Treasury.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>Read<\/strong>: <a href=\"https:\/\/businesstech.co.za\/news\/finance\/757621\/how-much-more-youre-paying-for-petrol-dstv-and-mcdonalds-in-south-africa-2014-vs-2024\/\" target=\"_blank\" rel=\"noreferrer noopener\">How much more you\u2019re paying for petrol, DStv and McDonald\u2019s in South Africa \u2013 2014 vs 2024<\/a><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>National Treasury is pushing ahead with legislative amendments, with less than six months to go until the new &#8220;two-pot&#8221; system launches. <\/p>\n","protected":false},"author":95,"featured_media":702685,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26,3796],"class_list":["post-759169","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline","tag-national-treasury"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/759169","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/95"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=759169"}],"version-history":[{"count":7,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/759169\/revisions"}],"predecessor-version":[{"id":759229,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/759169\/revisions\/759229"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/702685"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=759169"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=759169"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=759169"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}