Members of the public have two more weeks to comment to parliament on the proposed cashing in of part of their pension funds. This happened after the publication of the project of reform of pension savings by the National Treasury.
The public has until August 29 to comment on the draft law on amendments to the Law on Revenues and Fees for 2022. This will allow workers, in both the public and private sectors, to access a third of their retirement savings a year. It is planned that it will be implemented in April next year.
“The amendment introduced by the Ministry of Finance has many positive aspects. In April next year, it will allow workers to transfer a third of their savings to savings banks once a year, with the remaining two-thirds taken after retirement, meaning workers avoid having to retire to access their pension funds, which will encourage workers to save more if they have access to one-third of their savings,” says Cosatu’s Matthew Parkes.
“Workers spend more money on commuting and monthly responsible income, which means that workers are working for charity. This situation is becoming untenable and we will now step up the pressure on the Government and in particular the National Treasury to urgently amend these legislations and now consult with workers and federations through the Nedlac process,” says Fedusa Deputy General Secretary Ashely Benjamin.
Budget 2022 – Some staff will now be able to take advantage of proposed pension changes: