'The two-pot retirement system is a scam. It means zilch!' – Zwelinzima Vavi (Saftu)

The long-awaited two-pot retirement reform system is now in effect.

Here’s how it works: One-third of your contributions will be allocated to your savings pot, from which you can make withdrawals once per tax year. 

The remaining two-thirds will go into your retirement pot, and these funds will be inaccessible until you retire.

Any retirement savings accumulated up to 31 August 2024, will continue to be held in a vested pot.

This new system aims to offer a financial safety net in times of crisis while also promoting long-term savings.

Matthew Parks, Parliamentary Coordinator of the Congress of South African Trade Unions (Cosatu) expresses that they have eagerly anticipated the implementation of the system, having advocated for it since 2020.

"We're pleased with this first step forward."

- Matthew Parks, Parliamentary Coordinator – Cosatu 

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Zwelinzima Vavi on the two-pot retirement system

As millions of South Africans prepare to access their retirement savings under the new two-pot system, the South African Federation of Trade Unions (Saftu) has criticised the initiative as a raw deal for workers.

Saftu's General Secretary, Zwelinzima Vavi, has called the scheme a "scam," arguing that it effectively serves as a means for the government to increase taxes.

Vavi argues that if the system was genuinely intended to offer relief to South Africans, the funds would not be subject to taxation.

"When you look at the details of how this is going to be operational, you then realise that this hullabaloo means absolutely zilch; there will be no relief."

- Zwelinzima Vavi, General Secretary – Saftu

SARS Commissioner addresses tax implications of the two-pot retirement system

Edward Kieswetter, Commissioner of SARS, emphasises that individuals planning to withdraw funds should first ensure they are properly registered, have no outstanding returns, and have settled any existing tax debt or arranged a repayment agreement with SARS.

Failure to meet these conditions may result in tax being deducted from the principal amount, he adds.

Ramaphosa touches down in Beijing for Forum on China-Africa Cooperation Summit

President Cyril Ramaphosa has arrived in Beijing, China, for a state visit and to participate in the Forum on China-Africa Cooperation (FOCAC) Summit, which will be held from 2 to 5 September 2024.

This marks his second official visit to China, extended at the invitation of President Xi Jinping.

Ramaphosa hosted Jinping on his fourth state visit to South Africa in the city of Tshwane in August 2023, cementing 25 years of strong ties of friendship and cooperation between the two countries since the establishment of formal diplomatic relations.

Eastern Cape principal shot on school premises

Parliament's Select Committee on Education, Technology, and Creative Industries has condemned the audacious shooting of a school principal in the presence of teachers and pupils in the Eastern Cape. 

On Wednesday, a lone gunman fatally shot the principal of Zakhele Primary School in KwaBhaca, Alfred Nzo West district.

According to Eastern Cape Department of Education MEC Fundile Gade, the assailant fled the scene on foot and disappeared into a nearby forest.

Siviwe Gwarube, Minister of Basic Education, highlights the Department's efforts to boost literacy levels and enhance basic education outcomes.

However, she notes that these goals cannot be realised if educators are concerned for their safety.

"It's absolutely terrifying."

- Siviwe Gwarube, Minister of Basic Education

Senzo Meyiwa murder trial continues

The cross-examination of ballistics expert Chris Mangena is ongoing in the Senzo Meyiwa murder trial. 

Charles Mnisi, the attorney representing Accused 3, Mthobisi Mncube, is anticipated to continue questioning Mangena.

Mangena has testified that a bullet recovered from the crime scene was linked to Mncube, implying that he may have been responsible for the shot that killed Meyiwa.

In contrast, the defence maintains that Longwe Twala is the one who fired the fatal shot.

New era for the South Africa's judiciary as Justice Mandisa Maya takes over

As Justice Mandisa Maya took office as the country’s first female Chief Justice on Sunday, her most significant challenge in her initial 100 days will be to lead the newly established Judicial Service Commission (JSC). 

Appointed by President Cyril Ramaphosa after consultations with the JSC and leaders of political parties in the National Assembly, Justice Maya faces a pivotal role in shaping the future of the judiciary.

Man accused of Mpumalanga businesswoman's murder won't be confessing to the crime

The man accused of murdering Mpumalanga businesswoman Renee Lea has no intention of confessing to the crime.

Lea went missing from her Standerton home last weekend, and her vehicle was subsequently discovered at a petrol station in Moreleta Park, Pretoria, with her body in the boot.

Twenty-one-year-old Cuan Karelse, also from Standerton, made his second appearance today in the Pretoria Magistrates' Court, having first appeared in court a week ago.

Karelse is charged with murder, robbery with aggravating circumstances, unlawful possession of a firearm, and unlawful possession of ammunition. He is alleged to have killed Lea during a home robbery.

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