National Treasury’s latest proposals for the two-pot retirement system are likely to be welcomed by the retirement industry, but organised labour as represented by the Congress of South African Trade Unions (Cosatu), is disappointed.
Treasury has heeded the industry’s long-standing calls to be afforded between 12 and 18 months to prepare for the new system, by – once again – pushing out the implementation date by a year, from 1 March next year to the first day of March in 2025. The implementation date in the initial draft legislation was 1 March 2023.
Adri Messerschmidt, senior policy adviser: regulatory affairs at the Association for Savings and Investment South Africa (Asisa), said Asisa’s members welcomed the decision.
“Our members believe a rushed implementation will not be in the interest of retirement fund members. The two-pot system is a fundamental change to the retirement fund landscape, and its implementation must be handled with great care. While our members have started working on the necessary process and IT changes, the final legislation must be available to clarify the uncertain elements to allow members to proceed with finalising their implementation,” she said.
Messerschmidt was commenting after Treasury responded to submissions on the draft two-pot legislation during a meeting of the National Assembly’s Standing Committee on Finance (Scof) yesterday.
Treasury’s proposal to allow the industry more time is a blow for Cosatu, which has called the implementation date of 1 March 2024 a “red line”. In its view, workers – many of whom are “drowning in debt” – have been waiting since 2020 to be able to access their retirement savings without having to resign.
Chris Axelson, Treasury’s deputy director-general for tax and financial sector policy, told Scof that the two-pot system will introduce “a fundamentally different approach to retirement”, and Treasury “is very nervous about rushing this approach, which could undermine the industry”.
He said the South African Revenue Service (Sars) will also need time to prepare its systems for this “very large change”.
In addition, the later implementation date will provide retirement funds with sufficient time to consult their members about rule changes and to communicate to them how the two-pot system will affect their contributions.
Treasury and the industry rejected proposals for a staggered introduction of the two-pot system as and when retirement funds are ready to implement it.
Axelson said staggering would be difficult to administer from a tax point of view. Asisa and the Institute of Retirement Funds Africa submitted it would be impractical to have funds inside and outside the system simultaneously – for one, it would be impossible to effect an inter-fund transfer if one of the funds did not have all the components.
Slightly higher seeding cap
The delay is not the only reason Cosatu is “deeply disappointed” with Treasury’s responses.
Treasury has rejected Cosatu’s call for the cap on the seeding amount to be raised from R25 000 to R50 000. But it has increased the cap by R5 000, to the lesser of 10% or R30 000 of a member’s “vested” savings. In plain language, this means that each retirement fund to which you belong (although some funds may be excluded) must transfer 10%, but no more than R30 000, of the value of your savings on 28 February 2015 from your vested component (or pot) to your savings component. The purpose of seeding is so that members will have money in their savings pot that can be withdrawn immediately.
Read: Two pots: MPs agree with Cosatu that R25 000 cap on seeding is too low
Matthew Parks, Cosatu’s acting national spokesperson and parliamentary co-ordinator, told Moonstone that R30 000 was the agreed-to seeding amount in 2020, when Cosatu discussed the two-pot system with then-Finance Minister Tito Mboweni. The proposal to increase the amount by R5 000 does not consider the impact of inflation and other cost increases over five years (to March 2025). In Cosatu’s view, R40 000 would be more appropriate.
Treasury’s initial draft legislation for the two-pot system, which was published in July 2022, did not permit seeding of the savings pot. Following push-back from Cosatu, the revised draft legislation, published in June this year, provides for seeding.
Cosatu believes the result of the delayed implementation, together with insufficient seeding, will be mass resignations by financially desperate workers, so they can access their retirement savings to pay off debt. This is the exact opposite of what the two-pot system is supposed to achieve: the substantial preservation of retirement savings over the long term.
Asisa has been opposed to seeding on principle, citing its negative effect on members’ retirement savings. It did not want the seeding cap increased above R25 000, saying a higher amount could result in some retirement funds facing a liquidity crisis, and asset sales by funds would have a negative impact on the financial markets.
Regarding the latest proposal to increase the cap to R30 000, Messerschmidt said the impact on funds’ liquidity will be manageable and Asisa’s members will not oppose it.
It should be noted that Treasury’s proposals, as presented to Scof, have yet to be formalised in legislation, and Parliament must still approve the final legislation.
Rejected proposals
Treasury rejected calls for the following:
- Lump-sum withdrawals from the savings pot to be taxed at a flat rate or according to the (pre-retirement) withdrawal benefit table. They will be taxed at a taxpayer’s marginal (personal income tax) rate.
- Withdrawals from the savings pot to be staggered throughout the year, to mitigate liquidity concerns and effects of market pressure. For example, members can withdraw only in the month of their birthday. Treasury said staggering might be administratively cumbersome and not coincide with members’ financial needs.
- A reduction of the portion of retirement savings that a member must use to buy an annuity – 100% of the retirement pot (component) and two-thirds of the vested pot (component).
Proposals and clarifications that were accepted
Treasury accepted many of the proposed changes and requests for clarification submitted by stakeholders and said the legislation will be amended accordingly.
Some of the changes that will be incorporated are as follows:
T-Day provident fund members older than 55 will have to opt in
Provident fund members who were 55 years and older on 1 March 2021 (the so-called “T-Day”) will, by default, be excluded from the two-pot regime. They must explicitly choose to opt in. This is a reversal of the position in the draft legislation, which is that provident fund members who were 55 or older on T-Day are automatically included the two-pot system, unless they choose to opt out.
Seeding: T-Day provident fund members younger than 55
The draft legislation will be amended to clarify that, in the case of provident fund members younger than 55 years on 1 March 2021, the seed capital should be taken proportionately from the pre-1 March 2021 vested and non-vested benefits.
Exemption criteria extended
The exemption from the two-two system will be extended to:
- Retirement funds with no active participating members – funds in liquidation, beneficiary funds, closed funds, and dormant funds.
- Pensioners (because they are non-contributing members).
Clarity regarding legacy RA funds
The proposed definition of legacy retirement annuity (RA) funds will be amended to clarify which universal life policies qualify for an exemption.
The exemption shall apply only to legacy RA policies entered before the date on which the two-pot system is implemented, not before 1 January 2022.
The draft legislation will clarify the content of the declaration that legacy RA funds must submit to the FSCA when applying for an exemption from the two-pot system.
Section 37D deductions
Deductions from a member’s benefit permitted in terms of section 37D of the Pension Funds Act will be made proportionately across all three components: savings, retirement, and vested.
Clarification of the amount in the savings pot available for commutation at retirement
At retirement, a member will have three options for any amounts remaining in the savings component.
- The member can make a withdrawal from the savings component. The withdrawal will be taxed according to the retirement fund lump-sum benefits table.
- The member can transfer some or all of the amount to the retirement component, which will be used to buy annuity.
- Any amounts remaining after exercising the above choices will remain in the savings component and can be withdrawn after retirement. These withdrawals will be included in the member’s gross income and taxed at his or her marginal rate.
The evaluation of the de minimus value that can trigger an automatic commutation upon retirement (R165 000) is a separate calculation and includes member’s interest in the retirement component, plus no more than one-third of the member’s interest in the vested component. The savings component is not relevant to the calculation.
Withholding tax on withdrawals
There were submissions that the requirement for fund administrators to obtain a tax directive from Sars when members make withdrawals from their savings pots was onerous and would result in long delays and increase administration costs.
Treasury has proposed the implementation of a withholding tax process as contemplated in paragraph 2B of the Fourth Schedule to the Income Tax Act. If this is approved, Sars will provide to the fund administrator with guidance on the correct tax rate for the tax deduction from a savings withdrawal claim rate (as it currently does for pensioners with more than one pension income).
Cost deductions
Costs will not have to be deducted from contributions only. The amended legislation will include provisions enabling funds to determine, in their rules, the nature and structure of deductions.
CoFI-related changes to be removed
Treasury has agreed that changes related to the Conduct of Financial Institutions Bill (CoFI) will be removed from the enabling legislation for the two-pot system, the 2023 Draft Revenue Laws Amendment Bill and the 2023 Draft Revenue Administration and Pension Laws Amendment Bill.
This is BULLSHIT… I need that DAMN MONEY… this bleddy interest rate will kill me.. I don’t care even if you publish this comment.. Been in the same rank for 24 yrs NOW SAPS… How am I supposed to survive..??
There are no pensions available for entire government public servants only this two pot system is to deny beneficiaries of the pensions currently and those who would retire within 5 to 20 years coming.
This is a joke to employees. because on it’s implememtation it was meant to relief eployees 4rom debts. And it no nolonger serve that purporse. as a result it will lead to mass exodus of employees
Implement agreement between labour and employer with immediate effect this is no Sassa grant it our money.
Secondly it was supposed to b optional for members who want to resign,why keep momey for someone resigning until pensionable year, all this r tricks to save our failing system.
People need and want their.money. it’s their money,why all.this.now.6.months before implementation, Give the people their. Money and then sort out your legislation or.whatever after that,because clearly.we see.were.the delay.is and it’s not the.people problem,sort out by 1 March 2024..that’s the deadline.no extensions.
You are right this is nonsense and its a slap for workers !
We need this money unless they want us to go to the streets then they will know what we mean.
This is OUR MONEY and people are over indebted.
What Government do not realise, this money will help the economy grow. Or are they really so shortsighted…we the people are drowning in debt… with all these price hikes
I totally agree, why extending the daye and the due date must still be 1 march 2024, we need that money and already wait 2 years for it
Does this practice still serve the interests on which it was to address, especially the strain caused by Covid-19?
Why do these people I’m charge of administering our retirement funds anti-workers?
Does all this nuisances serve members benefits or those administering our fund?
It’s so disgusting and self serving on the part of Sars and administration to be so selfish and senseless.
Phakamile Xayimpi
GEPF please give us our money 💰
Cosatu is right, we want that money
This new venture of two pot system to be postponed is not and will not be interest of the employees.This is another political goal for the government to held our savings hostage do that their have full control of our hard work money. There’s no way their will implement this system in 2024 their will with another story to let this finds not to be available to people whom needed it urgently
It’s really troubling that Treasury seems to have final say on funds belonging to employees.
People are having serious mental health confitions due to financial hard times while they have millions in their pension funds.
Honestly speaking this government officials are greedy, only thinking of themselves . I want that money I’m suffocating. This was introduced in 2020 every time when the date is near, you change it to another year. It’s supposed to be 2023 then you change it to 2024, now 2024 is almost year you wanna change to 2025. I believe when 2025 approaches you will change to 2026. Those financial institution had the whole year to prepare, what were they doing from January to date. We want that money in 2024.
I personally think that our government does not serve the interest of the citizens of SA, especially the working class. R25000 – R30000 is nothing compared to the indebtedness of the workers. What happened to the 30% that was initially promised. Shove our money, we shall overcome this too.
Agree 💯 %
Yes i think the ANC Government doesn’t think about us, they only think about their pockets to be filled always and is our money after all of this we are suffering for our money and they delay means their use our savings to fill up their needs. They don’t care about us this ppl.
All these delays means there is serious challenges with the financial sectors solvency, workers must suffer, while these fleesbags live in opulence, they eating out savings…
From financial point of view, it doesn’t make economic sense for government to give public servants R30 000 as a financial relief, while those public servants are deep into debts plus the rising repo rate! 80% of public servants have more than R100 000 debts, so if this R30 000 is equivalent or less than employees service bonus, what difference would it make to the lives of the public servants who are highly indebted!
In terms of financial table, the rand looses value everyday, so for official’s with more than 10 years of service the government should give them R100 000 as their contributions is inclusive of 7.5% employee contribution plus 13% employer contribution. The official’s with less than 10 years of service should be given at least R50 000 as they only qualify for 7.5% of their employee contribution.
If the government is serious about changing the lives of public servants to a better life that is indicated in transformative constitutionalism, they will have to consider this proposal.
Our government is failing us as economy upfront force of this country
Your proposal sounds great. Is very pitiful because those with powers have no such ideas.
You said it best, this makes all sense if government genuinely has the best interest of its public servants.
100% they want to give us small change, what can a person do with the amount that will be available, we need at least a 100000 to cover our debt and start fresh or we just going to eat that 25000 and be worse off with our pension, this system is only going to impact us long term.
This is shit at its highest form. They keep the goal-posts. What were they doing all along. They only think for themselves by enriching themselves with our. No forward thinking but greed only. We need those monies they are ours.
This our money the govt is playing mind games with. We are suffering January 2024 all Unions must unite on these common cause we are going for elections some will be baptized with fire 🔥
Delay tactics, because government depends on the monies and are in debt. They are not serious to relief the plight of the poor. Come 2025 it will be delayed to 2026 and so forth… If they were series they could have implemented it June 2024. Financial institutions were fully aware of the possibility of implementation and could have planned accordingly. Empty promises with a carrot of an additional R5000 that will be absorbed by taxes
These people are so damn selfish we working very hard we don’t deserve this kind of treatment. You are so greedy you must be ashamed of yourselves. This is our money guys stop playing stupid games with us
This government really doesn’t care about us.we are deep in debts and our kids are suffering while theirs are at private schools.i really need that money am working so hard for it.am a single mother of two us very difficult. Pls give us our money and stop making excuses
This government are really greedy and selfish .we are deep in debts our kids are suffering. Am a single mother of two n working so hard .is too hard shame pls give us our money and stop making excuses
Basically There is no money to withdraw. If investigation take place hell will broke loose. Our money is gone.
This delay is bullshit…people are struggling 😑
If this government really cares about us they will give us our monies without any further delay…this is our money and the implementation has to be in 2024 as we cannot take any more delay.Any caring government listens to it’s people and works for the betterment of their lives.Our people are really suffering with petrol and food price increases that happens month on month.No more delays please.
I really wonder if the same pension money is still available. This does not make any sense, why should they always introduce 11th hour changes.
No, please pay the people their money!
I don’t want the money I NEED it, why is it pushed back to 2025 doesn’t make sense. We need our money please. We drowning in debts.
This was supposed to relieve workers their debts but instead it seems like a joke to whoever is in charge of our hard earned savings, 2023 to 2024 now 2025, wats next 2026? And do this ppl think that 30 000 will relieve us mara?
People need their money,treasury stop postponed.The money is going to help people they debt.Everytime you’re delay COSATU is right.Goverment people want their money maybe government they to borrow our money that’s why you’re delay hey
It is the workers money we are not going to say please. Why are you changing year to year this is a delay tactics you are planing to take your share which you did not work for SATANIST.
U are undermining COSATU
The only way to solve problems In SA is to go out on the street and sing letha emali yethu.
My point Jonas this government is taking us for a ride. Am supporting the point of going to the streets should they not give us OUR MONEY!
From financial point of view, it doesn’t make economic sense for government to give public servants R30 000 as a financial relief, while those public servants are deep into debts plus the rising repo rate! 80% of public servants have more than R100 000 debts, so if this R30 000 is equivalent or less than employees service bonus, what difference would it make to the lives of the public servants who are highly indebted!
In terms of financial table, the rand looses value everyday, so for official’s with more than 10 years of service the government should give them R100 000 as their contributions is inclusive of 7.5% employee contribution plus 13% employer contribution. The official’s with less than 10 years of service should be given at least R50 000 as they only qualify for 7.5% of their employee contribution.
If the government is serious about changing the lives of public servants to a better life that is indicated in transformative constitutionalism, they will have to consider this proposal.
This is indeed a joke, we want that money why is so difficult for this people to give us our money
What’s so difficult for these Guys to give us our Money fuck Maan,we deep in debts
This 2 pots system must be scrapped Finish n klaar. It doesn’t have the interest of workers altogether.
I think they’re preparing a strategy to steal it, just wait and see. They are doing what ever it takes to benefit them. If the funds are there, what is so difficult to make them available. Maybe it is long gone as we speak, that is why they are pushing it further and further away.
My problem is if you get laid off…you lose your house car whatever…also no access to capital to start a business or something to survive..there are dark reasons behind 2pot system..they care so much about us but more about themselves…make it sound good and hope all will fall into the trap
Wicked scheme
This is bad. Someone else decides when and how we can use our own money. With the actuarial interests fiasco I lost more than R100k from my pension, the more delays, the more monies will disappear from our hard earned pensions. We need to stand up against this government. Enough is enough
I am drowning in debt i need that money to get out of debt on the 1 March 2024.. Give us our money we are working for it
The further delays on the implementation date is not in the interest of the workers. The disposable income of the working class shrunk since 2020 with no sign of recovery soon. The 2024 implementation would have aided majority of the burdened workers.
To compensate for delayed implementation to 2025, one third of the contributions from March 2024 to February 2025 must be added to the R30,000.00 cap and be directed to the savings pot. In this way it is a win-win situation.
Why the change of dates every year, what is the delay , it’s not governments money to change its the peoples money just give us our damn money come March 2024, no more excuses , no more stories, no more babling about this and that just have this system innplace come 1 Mrach 2024, simple or are you’ll working on a plan how to loot the funds .
This is shit at its highest form. What were they doing all along. They only think for themselves by enriching themselves with our monies. No forward thinking but only greed. We need our monies finish and Klaas.
Seriously does anybody realize by only pushing the date further people are drowning more and more in debt. Whoever is pulling the strings on this is not thinking like someone that is sitting in that position. Obviously that people is well off.
Why are we taken from pillar to post regarding OUR MONEY?
Do you people have an idea how people are suffering because of debt? I know what I mean cause I am also indebted I want this money to pay off my debts.
People are having depression, high blood pressure others are even contemplating to commit suicide.
Is this what we voting for in this country?Just to be walked over and taken for a ride?
I work for a municipality and I see what is happening to people who are over indebted, People are in debts even when its month end people run to mashonisas and cash loans to borrow so as to put food on their table and for the kids to go to school.
This is not fair at all.
GIVE US OUR MONEY OR ELSE MOST WILL TAKE THEIR PENSION FUNDS AND WALK!
The government should just give people their hard earned money it us not their fuckin money it belongs to the hard workers.please becareful people I don’t trust this fuckin government .Please find ways to take put your money.They are looking for plans to steal your hard earned money.They are devil’s and more.I pray God has no mercy on them.
Working class deserve better treatment than what they are getting from this government. Cosatu must not allow this postponement and engage the government to implement. The top brass in government are not worried as they get paid fat salaries and other necessities for free. This postponement does not affect in any way so they don’t care about us on the ground. They rather go and meddle in other countries affairs and forgetting their own people’s suffering.
You are right Jonathan,is this a caring government?big NO.We working class suffer a lot under the current government,especially the public servant employees.
It is fine if treasury want to change the year from 2024 to 2025 whatshoyld happen now treasury must give employees 33% of the pension or provident fund balance as relief to settle they bonds and Motor finance loans so that they can be free from finance cost or interest charged on the principal debts that is the only way to relief the workers not the amount R30 000 or R25000 treasury want employees to access. R30000 Or R25000 or 10% makes no changes to the current situatons that emloyees are facing with. The reasons why the employees are resigning is because they owe banks for houses and cars but they have millions invested in pensions of which if they resign and get R500000 tax free pension they can settle they bonds and cars then go back to employment market again with less stressful life because they do not owe the institutions anymore. 33% of the funds is the only way to rebalate employees from the Capitalist system of mental slavery which living in someone house and drive someone car by puying him loan amount and highest interest rates which is not regulated by government like fuel and bread etc
Apologies for being blunt but I have to say it the way I feel. They are bunch of whankers, bullshitters, liars, self centered idiots of the first order. They feel that the Citizens n Public of SA are stupid n can be manipulated easily by the the so called supposed to be responsible employees of our Government seeing to the interest of its People. This is slavery. All they interested is seeing how their bank accounts grow n from which other sector they can corrupt n steal from. They have squandered the pension fund n making excuses for their actions of misuse n corruption. It’s a crying shame. It’s a snowball effect that we the People need to put an end too n exercise our rights without being victimised.
Y do U want to moderate My feelings. Freedom of Speech. We will want honest responses n reviews from the responsible departments thou. I think Urll need to be reminded that the one’s designated with high profile positions within the Government are being very highly paid far more than Urll deserve with Public or the Citizens of SA money n using money from Foreign Investments that’s actually projected n alloted for the purposes of making our country n its the lives of its People better. Corruption n misuse needs to be eradicated. What SA needs is a NEUTRAL INDEPENDENT TREASURY DEPARTMENT WITHOUT GOVERNMENT INFLUENCE N INTERFERENCE. I for ONE will LOVE TO WORK CLOSELY WITH OR FOR THAT DEPARTMENT with my vast n years of experience. Immediately the Government needs people like myself n many others n to be paid fairly in line of experience n expertise to be responsible for working towards making our country SA n the lives of its People better n beneficial without corruption n misuse of power n funds.
What they plan to do only now…. Should have been done long ago. They are playing for time. Why mudt it take 4 years to get to do something like this. People are going to leave their jobs to get their pension money. Is that not what the government was trying to avoid. Just a bunch of clowns.
They are playing games these people we want our money next year or else we must go to the street finish and klaar
Promises from 2020 during Covid-19 (Covid relief)
Just give us our money already, minimum of R 30 000 maximum of R 50 000
You chowed the Covid relief Funds, and now it’s our time to get our hard earned money before you take it for yourselves as always
I support those who suggest that we as employees go to the street should this government keep postponing relieving us from debt because it is our hard earned savings. The only thing with COSATU leadership is that they always wait until the 11th hour before acting. We should start preparing for action right now because clearly this government takes us for granted. COSATU should stop negotiating with stiff necked fools & take action ASAP
This is bullsh(&%$#t…I NEED this money like as of yesterday. This government is playing games with OUR money,together with insurance companies,because they want interest on our policies. RUBBISH 🗑 🚮
People are loosing there houses and cars, they going to leave there job and divorce for that money.
We need our money. Why now bring changes 6 months down to the implementation date. Really all of this people they do not care about people’s suffering its all about controlling. Give employees what is theirs (money ) and deal with legislation late please.
This is our money we want it now no excuses or you people have shares in that department stop playing with us give us our money
This is just delay technics, The pot system wa supposes to split your savings in half and grant the access to withdraw any amount from the other pot. People are blacklisted with amount of 100k to 2500k how 25k or 30k will assit them 😳 . This is another strategy to give our ungovernable contry some relive by tax
Very disappointed to our treasury thinking for the government not for the people
This 2 pot Systems is just our retirement exploration by government through tax.
Lets unite and rejecte they 25k or 30k
Its our money it, then supposes to be on our terms
Amandla
We have waited 2 years now for this i have debt i want to settle and yet delays 1 march 2024 i will demand my 25k i need to settle debt.
Actually national treasury they dnt have skills to run this money.All of them they are useless.lack of knowledge,lack skills.at the end they are earning millions so they dnt care about us.who is going to vote nextyear
Why this issue of money take so long maar in COVID 19 we received our money within a month of uif. Sumthing is not right between the national treasury and the committee of pensioners, investment sa.this must go to constitutional court we gonna win it.like it or not.
This is not good we want our money we truly in deep debts situation.this government is not it …25000 or 30000 its nothing
RUBBISH we want our money, Treasury want to use pension funds to inveatment in their failing systems. Almost 4 years later and still nothing, its all about taking bribes and eating tax oayers monies. How many of us will live to 2025 with the escalating crime and stress we under. Get ithe peoples unput before u aprrove such.
Guys, this whole scheme is wicked af. Even if they allow 1 third access our money will still be hijacked with no possible of accessing it even if you retire! At least now we have the option of retiring and withdrawing all your money. I don’t know about you guys but I’m gonna be resigning for sure before 2025!!!
That is why this government is failing every second of a time.
You Exectives and Parliament just wake up in the morning and make laws that suit you only without consulting with citizens. That is why you guys considered as a failing state.
Why didn’t you make us comment or place some inputs on what do we want with our pension?
Do you know that R25, 000.00 withdrawal will never make any difference to our debts?
Do you know how much we want in order to become debt free?
Why you require that money for withdrawal to be taxed again cos it’s a contribution from our salaries?
Please give us an opportunity to make choice with our pensions. Don’t do as if we don’t know what we are living for in the world.
Please: Note that we are quite aware about your tactical strategy that you want to do us as you intend to cut our bonuses and replace it with our to access to retirement saving withdrawal a year. Same as you did when you cut R1000.00 for porkert cash and converted to pensionable salary increase and was taxed as well.
We still don’t forget forget the last leg for salary increase 2018/2019 and that we have never got salary increment for past 3 years
Obviously we are serving a very cruel government, R250 000 to R30 000 is nothing compared to debts that we are having. 30% of the whole amount that one has in there will at least make a difference. 2024 it is, No excuses!!!!!!
Personally, i’m not For or Against the new proposals. Given the escalating interest rates, escalating inflation rates, but if more people actually live within their financial income capacity, they would not be sitting in this debt crisis …
If you resign, you have access to your entire retirement fund, barring the tax that will be taken off, seeing that SARS did allow you to use your contributions to reduce your annual tax liability.
I think a lot of people lose focus on the actual purpose of Retirement Fund Money … it is for your Retirement – it is not to dig you out of your debt – No Rocket Science here !!!
And come your actual retirement, and you have no money … who will you blame then ???
I am a qualified Bookkeeper, I still don’t understand why the Government is interfering in my Investments , Provident Fund is not an Income it is the money i am saving for my retirement to enjoy my Golden years, Why must it be Taxed what for? because from it we don’t get any tax relieve when submitting tax returns. This money was already taxed as P.A.Y.E when i was earning my Salary or wages while it was a Gross earning, From the Net pay I have decided to save for my future goals , Now why is the Government interfering now. Retirement Annuity run by Insurance has the tax relieve from SARS off which it is subjected to tax on withdrawal date and that is understandable. Government need to encourage people to invest on Retirement Annuities with the Insurance of their choice so that people cannot be a burden to the Government during their Golden years. This withdrawal that has to take place on the 01 March 2024 has to happen with no government interference to relieve people from their debts and it will also boost the economy through the buying power. Money to the people for better Economy. Minority cannot build a blossoming economy meanwhile the Majority are stranded.
So true , mind you the same Government doesn’t have money , they’ve just borrowed another Billions of R. and guess who will be servicing that debt , me and you. simply because the government is unable collect enough Tax. This crooks will make sure that they Tax us to hell.
i feel this is unfair to change the date , We had to pay school fees during covid even if there was no shcool we did not get full salary and promised relief from our money pension fund for 2 years now 01 march 2024 date should not change they had 2 years to prepare now another set us even more in debt not right how we are treated with our money .
please comment if you feel date should stay 01 macrch 2024 let our voices be heard.
The new 2 pot system for the GEPF should not be implemented in 2024. Taking monies out of the pension fund will actually reduce the pensionable amount at the time of retirement. This can be disastrous to the GEPF. There are no systems in place for the new 2 pot system. No workshops have been conducted. Is this another form of corruption & mismanagement of funds.
2024 is too soon for implementation. Employees have no idea about the new system & how it is going to be implemented.
Please note: Resignation means you are coming out of the system, whether old or new system, an employee is entitled to all their resignation benefits. We are Taxed on our monthly gross salary, why are we being heavily Taxed on the resignation benefit.
stop playing with us i need this money to overcome on debts.
The new 2 pot system should not be implemented for the GEPF. Workshops have not been conducted. Even the GEPF offices have no idea what is the new 2 pot system when you go to enquire. You need to be informed at least a year so people can make their decisions. People need to understand if you take out money from your pension funds you’ll have no monies left to enjoy your retirement that is why government should not implement this new 2 pot system. This will only lead to more fraud & corruption once you allow access into your pension funds. People need to be informed of the decisions made by the GEPF & given this complete year to make correct decisions of their way forward. This is a huge decision to make & government should not make drastic changes under a year to the pension funds without proper planning & informing each employee. Therefore we should be given a full complete year to understand these changes & implementation & how it is going to work and affect all GEPF employees. To the GOVERNMENT, Please do not make drastic decisions that we are unaware of to the GEPF. Give all employees over a year notice to understand the drastic changes made to the GEPF.