Important Notices

As per the Taxation Laws Amendment Act No. 23 of 2020, no more than one third of the retirement benefit from a provident fund may be taken as a lump sum.

This restriction does not apply to the balance in the fund as at 1 March 2021 (and growth thereon) and therefore funds will have to keep separate member accounts for pre-March 2021 contributions (and growth) and post-March 2021 contributions (and growth). Provident fund members who are 55 years or older on 1 March 2021 will be able to commute the full retirement benefit, including contributions made after 1 March 2021 (and growth thereon) to the provident fund of which he/she was a member on 1 March 2021.

T-DAY ANNUITISATION

As per the Taxation Laws Amendment Act No. 23 of 2020, no more than one third of the retirement benefit from a provident fund may be taken as a lump sum.

This restriction does not apply to the balance in the fund as at 1 March 2021 (and growth thereon) and therefore funds will have to keep separate member accounts for pre-March 2021 contributions (and growth) and post-March 2021 contributions (and growth). Provident fund members who are 55 years or older on 1 March 2021 will be able to commute the full retirement benefit, including contributions made after 1 March 2021 (and growth thereon) to the provident fund of which he/she was a member on 1 March 2021. Read more.

DEFAULT REGULATION

The Minister of Finance issued the Default Regulations, in terms of Section 36 of the Pension Funds Act 24 of 1956, which prescribe conditions for default investment portfolios, default preservation and portability, and annuity strategies for Retirement Funds. All new default arrangements that came into operation on or after 1 September 2017 must comply with the requirements set out in the Default Regulations. Read more.