President Cyril Ramaphosa has signed into law the Revenue Laws Amendment Bill of 2023, which establishes a “two-pot” system that gives members of retirement funds access to retirement savings without having to resign or cash out entire pension funds.
The presidency says in a statement that the amendment introduces a “two-pot” retirement system to address the concerns related to lack of preservation before retirement and lack of access to retirement funds by households in financial distress.
The presidency says it includes a savings and retirement component for contributions made after the first of September this year – while historical retirement benefits will be housed in a vested component.
Source: SABC News
