Tag: retirement reform

With the 1 September implementation deadline looming, South Africa’s ‘two-pot’ retirement reform is fast coming to the boil. While President Cyril Ramaphosa signed the new Pension Funds Amendment Bill, for many employers and labourers there remains much uncertainty. This has prompted us to offer a clear explanation of why this legislation has been drafted but, more importantly, how it will affect employers and employees directly.

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.

As the two countries implement reforms, the local situation is unlikely to spiral out of control as it did in France. In October 2010 there were massive strikes across France against pension reform. Activist Jean-Baptiste Reddé’s slogan “Ecoutez la colère du people" (Listen to the people’s rage) became world famous as the symbol that epitomised public sentiment.  

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.