Tag: provident fund

When provident fund contributions are not paid, it is the beneficiaries who suffer the most. A reconsideration application before the Financial Services Tribunal confirmed that employers remain bound to honour their obligations. This applies regardless of the probationary status of employees or any transfer of business.

From 1 September 2024 South Africans with retirement funds have the option to participate in South Africa’s two component retirement system. Qualifying consumers with tax directives will be able to access approximately R100 billion in retirement savings.

If you’re saving for your retirement, both retirement annuities (RAs) and tax-free investments (TFIs) are good investment choices. But which one offers the best tax benefits? The answer depends on your investment goals and unique circumstances. While there are tax benefits associated with both RAs and TFIs, the benefits are structured differently, and the product rules and restrictions are quite distinct.

National Treasury and the South African Revenue Service (SARS) provided important feedback at the recent sitting of the Standing Committee on Finance as part of the parliamentary process regarding the much anticipated two-pot retirement system.

The proposed "two pot" retirement system would allow people to have the best of both worlds – early access to a portion of their retirement funds, should it be necessary, while still preserving a significant portion for when they retire. The changes are set to take effect on 1 March 2024, but without further draft legislation being published in February, there are concerns that industry players will not have time to implement changes to meet this deadline.

Tax efficiency should be a key focus area for any investor’s financial plan. By making sure our tax affairs are in order, considering the tax implications of our investment decisions and maximising the tax benefits on offer, we can improve our long-term financial outcomes.

South Africa’s retirement fund legislation has undergone a series of changes since 2012 as part of government’s retirement reform process, which is aimed at ensuring that retirees make adequate retirement provision.

On 29 July 2022, National Treasury released the 2022 Draft Revenue Laws Amendment Bill for public comment until 29 August 2022 to introduce the 'two-pot' system for retirement savings that was flagged in the National Budget.

In a case that illustrates the devastation of employers’ failure to keep up to date with contributions, two complainants - a daughter and a son - have failed in their respective bids to get risk benefits to be paid when their parents passed away.

It is sometimes said that the 'law is an ass' when one thinks the law is too rigid, unnecessary or ridiculous. The complainant sought payment of a surplus benefit following the death of her husband who was a member of the Auto Workers Provident Fund.