TWO-POT RETIREMENT REFORM: PENSION FUNDS AMENDMENT BILL TABLED

TWO-POT RETIREMENT REFORM: PENSION FUNDS AMENDMENT BILL TABLED

• 31 January 2024
• Parliament
• SA Legal Academy

A Pension Funds Amendment Bill has been tabled in Parliament with the aim enabling retirement funds to ‘appropriately implement’ amendments to the Income Tax Act proposed in the Revenue Laws Amendment Bill, 2023. This is noting that the Revenue Laws Amendment Bill’s overarching objective is to introduce a two-pot retirement savings system.

Approved by Cabinet on 29 November 2023, the Pension Funds Amendment Bill provides for ‘the tax treatment of contributions to and withdrawals from eligible retirement funds under the two-pot system’. This is according to a letter from Finance Minister Enoch Godongwana to the NCOP’s Finance Committee – among other things explaining the importance of ensuring that both Bills are implemented simultaneously.

The Minister’s letter also explains why the two-pot retirement system implementation date in the Revenue Laws Amendment Bill was changed from 1 March 2024 (which was proposed in the draft Bill) to 1 March 2025. The committee has since agreed to delay implementation to 1 September 2024, as SA Legal Academy reported at the time. However, the Bill has yet to be revised to reflect that date.

• Pension Funds Amendment Bill
• Revenue Laws Amendment Bill (as tabled)
• Minister’s letter

Published by SA Legal Academy Policy Watch

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