Pension changes for South Africa under the spotlight
Parliament’s Standing Committee on Finance has invited interested parties to submit written submissions on the Pensions Funds Amendment Bill.
Introduced by the opposition Democratic Alliance, the bill aims to amend the Pension Funds Act to allow pension fund members to access a portion of their fund before retirement as a guarantee for a loan.
The DA has described the draft bill as crucial in the fight for ‘people power over state power’ in South Africa.
“Individuals should be free to choose, in unison with the trustees of their pension funds, how their own financial assets are utilised when it comes to providing collateral for responsible loans,” it said in an explanatory statement.
“It is important to note, however, that this bill entails no prescribed asset function. Instead, it entails giving individuals the freedom to choose for themselves by alleviating state interference on their lives.”
How it would work
The bill would amend the current Pension Funds Act to allow pension fund members to obtain a loan, secured by a guarantee from a registered pension fund, to alleviate financial pressure during an emergency.
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