The president signed one of the two bills required for the two-pot retirement system to work into law on Saturday. He only signed the Revenue Laws Amendment Bill and not the Pension Funds Amendment Bill.
The bill gives the implementation date of the two-pot retirement system, makes provision for seed capital, includes how to treat defined benefit funds in an equitable manner and how legacy retirement funds must be handled.from the Presidency, Ramaphosa signed the Revenue Laws Amendment Bill of 2023, which establishes a two-pot retirement system that gives members of retirement funds access to retirement savings without having to resign or cash out their entire pension.
Individuals will have access to amounts in the savings component before retirement for times of financial distress and the amounts in the retirement component are preserved until retirement.Primary objective of two-pot retirement system “The reform introduced by the legislation strives to strike a balance between long-term security and immediate needs, recognising life’s unpredictability. It permits fund members to access a portion of their savings during crises, such as those seen during the COVID-19 challenges.”
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