Africa. Treasury bars early access to pension money
You will no longer be able to access pension contributions from your employer until retirement. In another flip-flop of the pension regulations, the National Treasury has reversed regulations that had allowed employees to withdraw up to half of pension contributions by their employers before they attained retirement age.
LONG-TERM
The policy, which was popular for employees in the private sector, had caused a major discomfort in the pension industry which had come to be accustomed to staying with retirement benefits of contributors for decades, and at times paying them peanuts as investment income at retirement.
However, through an amendment to Retirement Benefits Regulations 2019, the Treasury has scrapped this provision. “Regulation 19 of the principal regulations is amended in paragraph (5) by deleting the words ‘and fifty per cent of his employer’s contribution and the investment income that has accrued in respect of those contributions,’” the amendments to the retirement benefits regulations published by Treasury Cabinet Secretary Henry Rotich read in part.
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