The National Assembly has approved the Pension Funds Amendment Bill without encountering any objections.
The Bill aims to amend the 1956 Pension Funds Act to introduce a savings withdrawal benefit. Together with the already passed Revenue Laws Amendment Bill, it will establish the so-called two-pot system.
Under this system, members of pension and retirement funds will be able to access one-third of their retirement funds from their savings pot.
House Chairperson Madala Ntombela says, “That concludes the debate. Are there any objections to the Pension Funds Amendment Bill? The Secretary will read the Bill a second time. Pension Funds Amendment Bill Madala: The Bill will be sent to the NCOP for concurrence.”
Two-Pot Retirement System explained:
In the course of the debate, Joe Maswanganyi, Chairperson of the Standing Committee on Finance, outlined the objectives of the Bill and its potential advantages for workers who are members of the fund.
“The Bill amends the Pensions Fund Act of 1956, the Post and Telecommunications Related Matters Act of 1958, the Transnet Act of 1990 and the Government Employees Pension Laws 1996, to insert certain definitions to introduce the savings withdrawal benefits, establish the appropriate account for a member’s interest in the savings, retirement invested components, and allow for deductions that may be made…”
“These amendments were not included in the Revenue Laws Amendment Bill that was already passed by the National Assembly in February 2024. The proposed two-port retirement system, as presented by the Deputy Minister, addresses primary concerns of the workers. The system will provide relief to workers in both the public and private sectors,” Maswanganyi affirmed.
- National Treasury comments on two-pot retirement system:
