According to a media statement from the South African Government, the National Treasury has published proposed changes to the laws governing public sector pension funds.
These amendments aim to enact the legislative changes essential for the effective implementation of the two-pot retirement system adjustments in public sector funds.
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Amendments to the public sector pension laws are proposed to be incorporated into the ‘Pension Funds Amendment Bill [B3—2024]‘, currently under review by the Standing Committee on Finance.
The amendments will impact several public sector pension laws, including:
- Government Employees Pension Law, 1996 (Proclamation 21 of 1996)
- Post and Telecommunications-related Matters Act, 1958 (Act 44 of 1958)
- Transnet Pension Fund Act, 1990 (Act 62 of 1990)
Among the proposed modifications are the introduction of definitions to accommodate savings withdrawal benefits, ensuring the proper allocation of a member’s interest in savings and retirement components, as well as stipulating permissible deductions by the funds.
These changes aim to standardise pension laws across all sectors, facilitating fund rule amendments alongside the implementation of the two-pot retirement system, scheduled to commence on September 1, 2024.
Parliamentary hearings on the Pension Funds Amendment Bill, including the proposed amendments to public sector pension laws, are scheduled for Tuesday, March 12, 2024.
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