Retirement funds, whether a pension, provident or retirement annuity before retirement and living annuities after retirement, have a general lack of appeal due to their perceived complex nature and inflexibility. However, the advantages can often far...
It's been just over two months since the South African retirement fund system underwent its most significant transformation: the introduction of the two-pot system. After years of regulatory reforms, this change has finally brought compulsory preservation...
Trust, usually underpinned by transparency, is a key pillar of good relationships. This is especially true in the relationship between a financial services provider and their clients. Education has an important role to play in this relationship too, and it...
FSCA Trustee Toolkit (TTK) The extended period for completion of all 22 modules of the FSCA Trustee Toolkit expired on 30 September 2024. This applied to trustees who were in office for 6 months and longer on 30 September 2024 (newly appointed trustees have...
Two Pot System changes As of 1 September 2024, all funds will consist of three components, being (1) a vested component, (2) a savings component and (3) a retirement component. The accumulated fund credit (as at 31 August 2024) will form the vested component...
General update before I dive into the topic: The South African retirement fund landscape has been undergoing significant shifts since the introduction of the Retirement Reform. The said reform started with discussions back in 2007 with the discussion paper...
As stakeholder needs and opinion are crucial to the overall strategic direction of the Institute of Retirement Funds Africa, in July and August the industry body undertook an engagement and reputation monitor, employing the services of an independent...
In the Financial Services Tribunal (FST) decision in Rand Mutual Assurance Co Ltd v TJ Begwa and others (Case No PFA19/2024 - 15 August 2024), the FST ruled that an employer's compliance with the audi alteram partem rule (hear the other side) does not...
1 September 2024 marks the commencement of the Two Component system. It is one of the most significant reforms to the retirement fund industry in decades and undoubtedly, many working in, and for, this industry are feeling a bit overwhelmed and nervous, given...
On 1 September 2024, the retirement system in South Africa will change considerably. The new regime is known as the two-pot retirement system. Going forward, members of retirement funds will be able to access a portion of their retirement savings while still...