Simeka Two-Pot Communication Roadmap
Click here to download the two-pot communications roadmap.
Our previous communication issued leading up to implementation date, 1 September 2024
12 January 2024
Update on the two-pot retirement system progress – The Minister of Finance’s proposal of an implementation date of 1 September 2024 instead of 1 March 2024 was eventually accepted by the Standing Committee of Finance. The implementation date of the two-pot retirement system is 1 September 2024. Final legislation is not yet available, without which it is difficult for administrators of retirement funds to finalise developments to their systems and processes. Finalisation of SARS’ tax directive system is also awaited, which is crucial to enable members to make withdrawals from their savings pot in their funds.
29 November 2023
The two-pot retirement system progress – On 21 November 2023, the Standing Committee on Finance (SCoF) advised against National Treasury and the retirement industry’s view that an implementation date of 1 March 2025 is more feasible, and instead, the committee is proposing to revert to the previously proposed implementation date of 1 March 2024. The SCoF report will now have to be considered by the two houses in Parliament for approval and passing of the legislation.
3 November 2023
The two-pot system, draft response released – National Treasury proposed that one-third of your future retirement savings will be allocated to a savings pot and two-thirds to a retirement pot with your current savings in your retirement fund to a vested pot. The Revenue Laws Amendment Bill was published on 1 November 2023 and a parliamentary session is scheduled for 21 November 2023, when the final decisions on the proposals will hopefully be clarified. We highlight some noteworthy changes to what was proposed in the draft Bill.
21 August 2023
Guidance on certain frequently asked questions and answers – National Treasury proposed that with effect from 1 March 2024, one-third of your future retirement contributions will be allocated to a savings pot and two-thirds to a retirement pot. Your current savings in your retirement fund, if any, will be ring-fenced in a vested pot. Note that at present, the two-pot retirement system is at proposal stage and comments are being considered by National Treasury. Some details may therefore still change.
21 June 2023
Early access to retirement benefits – The proposals on the two-pot retirement system were first published by National Treasury on 29 July 2022. The second draft of these proposals was issued on 9 June 2023 and is open for public comments until 15 July 2023. An extensive legislative process, including public workshops and hearings, will now follow before the proposals go to Parliament. The proposals may therefore still change. In the proposals, the name was changed from “pots” to “components”. It is however still introduced as the “two-pot” system. The suggested implementation date remains 1 March 2024, although the South African Revenue Service, the retirement funds themselves and their administrators will have to undergo extensive system and process changes to cater for it, after they have worked through the proposals.