Pension Funds Amendment Bill unanimously supported by parties in NCOP

CAPE TOWN - Political parties in the National Council of Provinces (NCOP) support the Pension Funds Amendment Bill, which could soon allow South Africans to access their pensions while still employed.

The adoption of the bill by the NCOP on Thursday means this could be possible by the 1 September implementation date.

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The NCOP considered and adopted the legislation, with all parties showing their support for the policy.

The objective of the Pension Funds Amendment Bill is to amend the Pension Funds Act and other related legislation to allow retirement funds to implement amendments to the Income Tax Act.

The amendments also give effect to the “two-pot” retirement system. This will allow South Africans to preserve their retirement savings when they leave a job, but also give them limited access to their savings when they face financial difficulty.

Chairperson of select committee on Public Enterprises and Communication, Mmamora Mamaregane, said people should be educated about the tax implications.

"National Treasury and SARS [South African Revenue Service] should monitor the tax implication on individuals and the State with the view of easing the tax burden on withdrawals made in terms of the two-pot system."

Despite some reservations by parties, the bill was supported unanimously and will now go to the president for his consideration.