UPDATE: The two-pot retirement system – Three pieces of legislation to be finalised
To implement the two-pot retirement system, three pieces of legislation must be finalised.
The 2023 Revenue Laws Amendment Bill (RLAB)
- The RLAB proposes the necessary changes to the Income Tax Act.
- It was approved by Parliament on 28 March 2024 and is with the President for signature.
The 2024 Pension Funds Amendment Bill (PFAB)
- The Bill proposes the necessary amendments to the Pension Funds Act to give effect to the two-pot retirement system.
- It was approved by Parliament on 16 May 2024 and is with the President for signature.
The 2024 Draft Revenue Laws Second Amendment Bill (RLSAB)
- This Bill addresses further technical corrections to the Income Tax Act, in addition to the RLAB.
- This Bill will only be tabled in Parliament when it is reconstituted after the elections on 29 May 2024.
Updated – 28 May 2024
The president has not yet signed the Bills into legislation as expected. The current parliament’s term expired at midnight on 21 May 2024, and the president may therefore no longer sign bills that have been passed by parliament. This means that the legislation will only be signed after the commencement of the new parliament’s term.
Updated – 3 June 2024
The President has on 1 June 2024 signed into law the Revenue Laws Amendment Bill of 2023, which establishes a two-pot system.
Updated – 5 June 2024
The Revenue Laws Amendment Bill that brings the two-pot retirement system into effect on 1 September 2024, has been promulgated into law today as the Revenue Laws Amendment Act 12 of 2024.
The Pension Funds Amendment Bill is yet to be signed by the President.
Update – 22 July 2024
The President has signed into law the Pension Funds Amendment Bill on 21 July 2024.
The new Pension Funds Amendment Act amends the Pension Funds Act of 1956, the Post and Telecommunications-Related Matters Act of 1958, the Transnet Pension Fund Act of 1990 and the Government Employees Pension Law of 1996.
This law complements the Revenues Laws Amendment Act, 2024 (Act No. 12 of 2024), which was signed by the President on 1 June 2024.