Zuko Komisa

The Pension Funds Amendment Bill, which modifies pension-related laws to facilitate the implementation of the newly enacted two-pot retirement system aimed at enhancing retirement savings, has been signed by President Cyril Ramaphosa.
The two-pot retirement system is a law that will allow retirement fund members to make partial withdrawals from their retirement funds before retirement while preserving a portion that can only be accessed at retirement to help improve retirement outcomes.

The savings component withdrawals will be taxed at the individual’s marginal tax rate and added to their taxable income.
The Presidency further clarified that retirement funds will have to establish a new component, the retirement component, which will be kept within the current retirement fund, on or shortly after September 1, 2024.
“What is in the savings component will be available for withdrawal at any time before retirement. The ability to unconditionally access amounts from the savings component will be provided without the member having to cease employment or having to resign.
“A member will be allowed to make a single withdrawal within a year of assessment and the minimum withdrawal amount is R2 000. The ability to withdraw from the savings component will be applicable on a per fund or per contract basis,”
“The assets in the retirement component will be required to be preserved until retirement (i.e. withdrawals from this component can only be accessed by the member upon retirement, as per the fund rules).
“Once a member has reached retirement age and retires, the retirement component is to be paid in the form of an annuity, including a living annuity. This dispensation gives members of retirement funds access to retirement savings without having to resign or cash out entire pension funds,”
The Presidency
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