We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. New pension fund regulations will ensure better retirement. Registrar may require unregistered funds to furnish information. Sections, 19 and 28 amended by pension funds amendment act 94 of 1997. The changes to the pension funds act will be implemented from 1 march 2019. Pension funds act 24 of 1956 sa parliament of namibia. Pension funds amendment act 11 of 2007 south african government. The government are targeting pensions and retirement funds. A nightmare on the allocation and distribution of death benefits in terms of section 37c of the south african pension funds act 24 of 1956. Pension fund, provident fund and retirement annuity old mutual. Pension funds act 24 of 1956 south african government.
Creation of encumbrance in respect of contribution 114. Pension, provident and preservation funds in south africa. The giant african pension fund is south africas government employees pension fund gepf, which had an investment portfolio of zar1. What deductions are allowed from your pension fund payout. Pension fund, provident fund and retirement annuity old. New regulations are to your benefit but tough on pension funds news.
South africas occupational retirement system along social security objectives. Lufuno nevondwe po box 651826, benmore, rsa 2010, south africa emails. Pension funds amendment act, 2001 pdf version act no. Under the south african constitution act 108 of 1996, everyone has the right to social security section 27 of the constitution, which includes the right to be allocated a death benefit if the requirements of section 37c of the pension funds act are meant. With acts you are guaranteed the latest and most up to date resource for your legislative needs.
Therefore where south african residents have worked in south. The south african retirement industry today manages assets of around r1. Pension funds second amendment act 39 of 2001 pension funds amendment act 65 of 2001. Act 94 of 1969 was also amended in south africa by the legal succession to the south african transport services act 9 of 1989 rsa gg 11743. An act to provide for the registration, incorporation, regulation and dissolution of pension and provident funds and for matters incidental to or connected with the foregoing. Section 37c distribution of retirement fund lump sum. The pension funds amendment act 11 of 2007 intends. Tax withholding obligation on pension funds based on the principles of source set out in the income tax act 1962, south african residents are taxable on the portion of the pension income which is deemed as south african source. The south african pension system is composed of a noncontributory, meanstested public benefit program, various pension and provident fund arrangements and voluntary savings. Act in certain respects, and certain rules, binding on state delegation and assignment. Sections 1, 7, 30 and 37 amended by pension funds amendment act 22 of 1996. How to make money from your home in 2019 next article. This paper, charges in south african retirement funds1 presents an overview, based on the information available to national treasury.
Pension funds act 24 of 1956 sa sa gg 5679 brought into force in south africa and south west africa on 1 january 1958 by sa proc. Pfa, formalised what was already a common practice by employers in the private sector and this legislation excluded state funds and funds created in terms of industrial agreements. The government are targeting pensions and retirement funds to force investment in the state. Dec 20, 2017 the giant african pension fund is south africas government employees pension fund gepf, which had an investment portfolio of zar1. Sep 09, 2017 the implementation of regulations requiring default options for pensioners could pose challenges for retirement fund trustees. A preservation fund serves as a savings vehicle into which proceeds from a pension or provident fund are paid. Transfer to pension fund referred to in section 4a of its assets held by another 5. There is a consensus among african policymakers that the continents economic growth and transformation. The oldage grant provided by the government under pillar 1 is the main source of income for 75% of the elderly population in retirement. Section 37c distribution of retirement fund lump sum death.
Pension benefits not reducible, transferable or executable disposition of pension benefits upon insolvency disposition of pension benefits upon death of member fund may make certain deductions from pension benefits exemption from act 57 of 1988. In this act, unless the context otherwise indicates. This statistic presents the total assets of pension funds in south africa from 2002 to 2018. House of assembly of the republic of south africa, as follows. Pension fund vs provident fund vs retirement annuities in. New regulations are to your benefit but tough on pension funds. The implementation of regulations requiring default options for pensioners could pose challenges for retirement fund trustees. Pension funds act 24 of 1956 sa legal assistance centre. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. The only purpose of a preservation fund is to house and preserve proceeds from pension or provident funds.
The fight for a democratic south africa led to many people sacrificing their lives, livelihoods and families for the cause. Amendment of section 1 of act 24 of 1956, as amended by section 21 of act 101 of 1976, section 9 of act 94 of 1977. Unclaimed benefit pension provident established for the receipt of unclaimed benefits. Pension reform act 2014 national pension commission. List of acts of the parliament of south africa, 196069. Legal succession to the south african transport services act 9 of 1989.
Assets of pension funds in south africa 2018 statista. Its mission and vision were to promote and maintain a sound. You can only join a pension fund through a company that employs you. Section 37c of the pension funds act 24 of 1956 the act governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund, pension and provident preservation fund and retirement annuity fund. Pension funds act 24 of 1956 mangaung metropolitan municipality. Act 94 of 1997 pensions fund amendment act to amend the pension funds act, 1956, in relation to the payment of contributions to pension funds and the payment of benefits or rights to benefits from one pension fund to another in certain circumstances, and to provide for the levying of interest on certain. Get to grips with pensions in south africa, including details of the how the south african state pension works and whether you should pay into a workplace pension. The revisions to regulation 28, which aimed to update pension fund investment practices in light of changing investment patterns and political and economic contexts in south africa, was an opportunity for the south african government to link the regulatory reform of pension fund investment with the governments broader goals of encouraging. Gepf is a defined benefit pension fund that was established in may 1996 when various public sector funds were consolidated. With a pension fund, your money is managed by the trustees of your pension fund, and they decide which assets to include in the fund. In south africa, the passing of the pension funds act, 24 of 1956. Some acts have gone by more than one short title in the course of their existence. All these papers are available on the national treasury website.
This study will analyse section 37d of the pension funds act, 24 of 1956. Section 7 amended by judicial matters amendment act 104 of 1996. Given under my hand and the seal of the republic of south africa at pretoria this. Employees pension fund mentioned in section 2 of the government employees pension law, 1996 proclamation no. It describes the nature of the system, considers proposals made for reform purposes, examines international law, including systems in belgium, the netherlands, and the united kingdom for a comparative study, identifies weaknesses in the system, and. Sa gg 5679 brought into force in south africa and south west africa on 1 january 1958 by sa proc. The result is that you will only be able to withdraw a third of your provident fund savings as a lump sum upon retirement, while the rest has to be. Section 1 defines union to include the territory, which is defined as the territory of south west africa. Qualifying conditions for withdrawal of accrued benefits 111. As its incomebased, many expats typically dont qualify. The oldage grant provided by the government under pillar 1 is the main source of. This is a list of acts of the parliament of south africa enacted in the years 1960 to 1969 south african acts are uniquely identified by the year of passage and an act number within that year.
The analysis will also give insight to pension benefits, and how they are afforded. South africa tax withholding obligation on pension funds. The government are targeting pensions and retirement funds to. Most people have heard of pension funds, but what are the differences between a pension fund, provident fund and a retirement annuity. Allocation of assets and liabilities between pension fund organization and. Members of the association for savings and investment south africa asisa managed total assets worth r8. Special pensions give effect to section 189 of the interim constitution, providing pensions to individuals who made sacrifices or served the public interest in establishing a democratic constitutional order in south africa. It is clear that the government had good intentions with section 37c. Pension funds amendment act 11 of 2007 south african. Original article the distribution and payment of a death.
New pension fund regulations will ensure better retirement decisions. Some expats who live and work in south africa can claim a south african pension. Requirements imposed by the financial services board for nominees to operate in south africa, 2007 bn 63 in gg 29911 of 25 may 2007 rule relating to the code of conduct bn 108 in gg 31534 of 24 october 2008 act to provide for the registration, incorporation, regulation and dissolution of pension funds and for matters incidental thereto. Distribution of pension fund assets globally 2018, by domicile and plan type. Carrying on business of unregistered pension fund organization and use. Beneficiary fund pension provident established to receive, administer, invest and pay benefits that become due to beneficiaries, payable on the death of a member.
Alternative investment funds 2019 south africa iclg. South africas pension fund regulation world economic forum. Our core business, which is governed by the government employees pension law or gep law, as amended, is to manage and administer pensions and other benefits for government employees in south africa. The minister may, after consultation with the minister of finance, by notice in the gazette declare any institution. Section 37 amended by abolition of restrictions on the jurisdiction of courts act 88 of 1996. The main concerns are around the value and legality of such claims, and delays in the fund payout. Effect of registration of pension fund referred to in section 4a 4c. Sections, 19 and 28 amended by pension funds amendment act 94 of. Act 766 national pensions act, 2008 social security and. We receive many queries on the subject of employers claiming against an employees retirement fund benefit, to compensate for damages caused by the employee.