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Retirement funds managers have appealed to Parliament to fast-track legislation, including the Pension Funds Amendment Bill (PFAB) and the Revenue Laws Amendment Bill (RLAB), to implement the two-pot system as planned in September this year.
The new two-pot system means South Africans can cash out one-third of their future retirement savings throughout their career, while two-thirds will only become accessible on retirement. The one-third component is called the "savings pot", while the other two-thirds is the "retirement pot".
The Association for Savings and Investment in South Africa (Asisa) and the Institute of Retirement Funds Africa (IRFA) said there was a "huge timing concern" about whether legislation will be promulgated in time, as several amendments still needed to be made. This includes amending provisions to allow for the accessing of retirement funds for divorce orders.
