Danie van Zyl of Sanlam Corporate Investments warns that allowing access to retirement components in retrenchment cases might jeopardise long-term savings and place added pressure on trustees.
More than 361 000 members of the GEPF have accessed their savings under the two-pot system, averaging R27 500 per claim.
The introduction of the two-pot retirement system has triggered a wave of withdrawal applications, prompting concerns over tax liabilities and the need for improved financial education.
Actuarial calculations may affect the costs and time for defined-benefit fund withdrawals, depending on the rules of the fund and the complexity involved.
An application clause will provide for the Pension Funds Act to prevail over the Divorce Act where the Acts’ provisions conflict.
The Association for Savings and Investment SA and the Institute of Retirement Funds Africa also call for amendments not related to the two-pot system to be held over.
LockBit, the cybercriminal group allegedly responsible for the attack, was the subject of a take-down operation by global law enforcement agencies.
The Pension Bill will prohibit members from making a withdrawal from the savings component if the withdrawal results in insufficient funds remaining to settle a court order.
All stakeholders emphasise the need to finalise the amendments to the Income Tax Act and the Pension Funds Act.
The Minister of Finance responds to the Standing Committee on Finance’s call for the implementation date to be moved to 1 March next year.
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