'Two-pot' retirement system officially signed into law
The Pension Funds Amendment Bill gives members of retirement funds access to retirement savings without having to resign or cash out their full pension funds.
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JOHANNESBURG - President Cyril Ramaphosa has signed the Pension Funds Amendment Bill into law, paving the way for the two-pot retirement system to be rolled out from the beginning of September.
The presidency confirmed the latest move on Sunday.
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The “two-pot” system gives members of retirement funds access to retirement savings without having to resign or cash out their full pension funds.
It is expected to give cash-strapped South Africans some reprieve as they battle to keep up with the high cost of living.
Spokesperson in the Presidency, Vincent Magwenya, said the new law was another key legislative pillar after the Revenue Laws Amendment Act was signed by Ramaphosa last month.
“The act requires pension funds to amend their rules, adjust their investment portfolios and prepare administrative systems for pension fund members to apply to access portions of their pension funds from 1 September 2024.”