Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 06 NOVEMBER 2023

Potential Major Changes Affecting Occupational Retirement Plans

WTW
Explore more from WTW

The South Africa government has proposed that changes to the two-pot retirement system, which gives workers access to pension funds before retirement, be delayed by a year.

South AfricaEmployment and HR
Erich Potgieter
Erich Potgieter

The South Africa government has proposed that changes to the two-pot retirement system, which gives workers access to pension funds before retirement, be delayed by a year.

Employer Action Code: Act

Draft legislation to amend South Africa's Income Tax Act and the Pension Funds Act would allow members of occupational retirement plans to access part of their future retirement accruals during employment, with the remainder accessible only upon retirement or death (known as the "two-pot" system). Existing payout rules would still apply to pre-reform accruals (with some exceptions), so in practice it would be a "three-pot" system. The targeted implementation date is March 1, 2024. (However, on October 25, 2023, the government proposed a one-year implementation delay to Parliament's Finance Committee. While the pensions industry strongly supports the delay, labor and some members of Parliament oppose it. If the delay occurs, references to 2024 below would change to

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

View source

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Unclaimed Benefits: Treasury Proposes Major Reform For Retirement Funds

National Treasury has proposed a centralised framework for administering South Africa's estimated R88 billion in unclaimed financial assets, including retirement benefits. The discussion paper outlines a system where a central administrator would manage tracing, record-keeping and claims through a single public portal, with assets potentially transferred to the Corporation for Public Deposits.
South AfricaEmployment and HR
Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
Article

Fraudulent Misrepresentation In Employment Comes At A High Price: Labour Court Orders Former CIO To Repay More Than R2.8 Million

A South African Labour Court has ruled that an employee who secured her position through fraudulent misrepresentations about her employment history must repay all remuneration received, along with costs incurred from consultants she secretly promoted. The judgment establishes significant precedent for employer remedies when recruitment fraud results in no value delivered, while confirming the Labour Court's jurisdiction over employment-related fraud claims.
South AfricaEmployment and HR
Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr
Article

Reminder: Employers Have A Responsibility To Deal With Harassment In The Workplace

South Africa's 2022 Code of Good Practice on the Prevention and Elimination of Harassment in the Workplace represents a significant shift from addressing sexual harassment alone to tackling all forms of workplace harassment, including bullying, intimidation, and cyber-harassment. The Code extends beyond physical office boundaries to encompass remote work, digital communications, and work-related events, while placing unprecedented emphasis on proactive prevention rather than reactive response. Employers mus
South AfricaEmployment and HR
Cliffe Dekker Hofmeyr
Cliffe Dekker Hofmeyr