Today's Labour News

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newsThe Citizen reports that although many of the six million who are members of retirement funds are looking forward to dipping into a portion of their retirement savings by 1 September this year when the Two-Pot Retirement System comes into operation, they will not already be able to make withdrawals on 1 September.

Deputy Commissioner of the Financial Sector Conduct Authority, Astrid Luden, said in an answer to a question at a FSCA conference last week: “What we have to manage is the public’s understanding that nobody will be able to pay out on 1 September”. A person from the industry pointed out that members of retirement funds expected to be paid out on 1 September, which she also pointed out falls on a Sunday this year. Ludin advised that the FSCA had invited the industry to forthwith submit rule changes to the FSCA so that their feedback could be received upfront. “We know you can only submit your rule changes by 1 September. We have three months. We must be clear about how this will be rolled out. Things will go wrong and we must manage expectations on the outside,” she cautioned. The starting date of 1 September 2024 was confirmed as the implementation date for the two-pot retirement system in the Draft Revenue Laws Second Amendment Bill released by National Treasury to make technical corrections to the Draft Revenue Laws Second Amendment Bill on the same day as the Budget 2024 speech. Managers of retirement funds have until the end of March to comment on the Bill.

  • Read the full original of the report in the above regard by Ina Opperman at The Citizen

Get other news reports at the SA Labour News home page