Two pots: proposed implementation date is neither 1 March 2024 nor 1 March 2025

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The National Assembly’s Standing Committee on Finance (Scof) today accepted a proposal by the Minister of Finance, Enoch Godongwana, that the two-pot retirement system be implemented on 1 September next year.

As Moonstone previously reported, on 21 November, Scof rejected National Treasury’s proposal to move out the implementation date from 1 March 2024 to 1 March 2025.

The enabling legislation for the two-pot system is the 2023 Revenue Laws Amendment Bill (RLAB), which is a money Bill. Scof was therefore required to inform the Minister of Finance of its intention to amend the legislation (that is, the implementation date) and provide him with 14 days to respond. (The 14 days exclude Saturdays, Sundays, and public holidays.)

This morning, Scof’s chairperson, Joseph Maswanganyi (ANC), disclosed that he had received a response from the minister.

In his letter, Godongwana said National Treasury has six concerns regarding the revised date of 1 March 2024.

First, the Pension Funds Amendment (PFA) Bill, which is required for the RLAB to be effective, has not been tabled in Parliament. The PFA Bill was approved by Cabinet on 29 November for submission to Parliament and will be tabled shortly. The amendments in the PFA Bill enable retirement funds to amend their fund rules to cater for the two-pot system.

The effective date of the RLAB cannot predate the implementation of the PFA Bill. Given that the PFA Bill has not yet been tabled, there is a concern that the legislative process will not be complete by 1 March 2024.

Second, even if both the PFA Bill and the RLAB can be promulgated by 1 March 2024, funds will be required to amend their fund rules and submit them to the FSCA for registration. Funds should communicate the proposed amendments and their impact to their members. Fund rules can be submitted to the FSCA for approval only after the RLAB and the PFA Bill have been enacted.

Although the FSCA can have its systems ready to receive fund rule amendments from 1 March 2024, it will take about three months from the receipt of the draft rules for the approvals to be finalised. There are 1 324 active retirement funds that will have to submit their amended rules for registration and approval.

Third, there are retirement funds that are not regulated under the Pension Funds Act but in terms of separate Acts of Parliament, and they will have to follow their own processes. In the case of the Government Employees Pension Fund (GEPF), fund rule amendments require consultations through the Public Sector Co-ordinating Bargaining Council. The GEPF is not a party to the bargaining council; therefore, these amendments will have to be proposed by the employer (represented by the Department of Public Services and Administration) for consideration by parties in the Bargaining Council. These processes are likely to extend beyond 1 March 2024 before they are completed.

Fourth, to enable withdrawals from the savings component at the date of implementation, funds must be able to apply the correct tax rate for the withholding of tax. This will be done through a directive from the South African Revenue Service (SARS). SARS has indicated that it needs at least six months after the promulgation of legislation to put such a system in place.

If the 1 March 2024 implementation date is retained, SARS will have to rely on a sub-optimal interim system, where SARS cannot guarantee quick turnaround times or the accuracy of the system. This runs the risk of withholding too much tax, which could exacerbate hardship for members, or too little which would result in a large tax liability for members on assessment at the end of the tax year.

Fifth, from an investment perspective, an implementation date of 1 March 2024 would require the fund managers of retirement funds urgently to reallocate their portfolios to meet the potential liquidity demands from the expected withdrawal requests. The need for liquidity could result in direct negative market impacts because assets will have to be disposed of over a shorter period to prepare for those increased withdrawals.

Sixth, the two-pot system is a fundamental restructuring of the retirement system. There should be a comprehensive communication and education campaign by both government and industry to inform members of the impact of the new regime on their retirement fund savings. Retirement fund members and financial advisers will need sufficient time to assimilate the implications of the new system, or members may make hastened decisions that could undermine their financial future.

Godongwana said he recognised that delaying the implementation is frustrating to retirement fund members, who expected that they would have access to a portion of their retirement fund savings by 1 March 2024, and to members of Scof, who have debated this issue over the past two years.

“However, the concerns I have raised above indicate it is highly unlikely that we will be able to achieve a smooth implementation in restructuring the retirement system by 1 March 2024.”

As a result, Godongwana proposed that implementation be delayed to 1 September 2024.

“National Treasury officials have had discussions with SARS, the FSCA, the GEPF, and the Government Pensions Administration Agency, and these institutions have indicated that a 1 September 2024 implementation date would be achievable, even though they would still be under pressure to get their internal systems and processes ready by that date.

“This implementation date is six months prior to the previously proposed delay to 1 March 2025 and would hopefully indicate that we have considered the concerns of the Standing Committee on Finance with utmost seriousness and are determined to achieve an earlier introduction of the new retirement fund system,” the letter said.

After a brief discussion, MPs from the ANC, DA, and EFF accepted the proposed implementation date of 1 September 2024.

70 thoughts on “Two pots: proposed implementation date is neither 1 March 2024 nor 1 March 2025

  1. The government ad treasure are playing with public servent. Bcs it our tax money. Why delaying payment. We are leaving in Sharks. People are laughing at us. Concerned. Educator.

    1. Mr Godongwane if you want our ANC to lose votes,shift the implementation of the two pot system to 2025 March. Friendly worning. People are talking out there. Implement it on the 1 March 2024 then our ANC will win in flying percentage.

      1. Yes Mr Godongwana there are millions of people waiting and if it gets moved we will still find ourselves in the same state of suffering while you rich folks don’t feel the pain change of date change of vote and one vote can influence 100 000+ votes and we give them to another party, let it be the first phase of this two pos system, everyone entitled to a releaf withdrawal of 2000 – 25000 taxed as per individual tax bracket, changing the dates will also change poples minds, we will resign we will vote for another party and we will influence our families to vote for other parties and friends and colleagues

    2. Simple, let’s vote them out, and they will feelit out to be betrayed and leave without proper icome. They’re earnimg hundreds of thousands per month…while

      1. that is the plan

        1. Anc had used the funds so the poor can suffer more. Let unite n vote them out

    3. I need money with immediate effect

  2. Some politicians only think for themselves, it’s been a while that this matter is being discussed.I’m sick & tired of the delaying tactics by certain people.I’m drowning in debt & I’m not asking ‘government’ to help me,I want the money that I worked for.During COVID 19 time because they wanted to enrich themselves & their immediate family members they rushed to take decisions.I’m not asking for favours, what I need is my money nothing else.Government is delaying the implementation date because they bailed SOE’s with the GEPF’s members money.You can delay GEPF members implementation date & leave other pensions/retirement funds to stick to the 01st March 2024.

    1. It is sickening that they’ve been playing around with this for so long. It could have been ready, just they fool around too much. They don’t know what they’re doing. People are needing this money. In fact people will stress and get sick now by the dates being pushed. Get up and grow up you people making these decisions. Selfish and Inconsiderate really. Making a bigger joke out of this already messed up country. Sad and disgusting.

    2. Absolutely we are all in debt our must wr survive. The fat cats get richer at lur expense. I worked for that money it belong to me. Why must it be delayed. Government had enough time to implement bills.

    3. Good day its true because they are getting everything

    4. We need our money to pay school fees and other emergency, please do not postpone the date of 01 march 2024.

      1. We r voting them out this year, that’s all, it’s our money

    5. tell them Tebogo they are living luxury while the retailers don’t get the monies that are indebted to them by people who are in debt, so for government to help everyone they must go on with the 01 March 2024…we are looking forward to it, as a first phase. and things can be corrected or adjusted based on experience from withdrawals. this is the same thing as people resigning, let them have their portion they worked hard for in years to ease problems like debt and emergencies. so this decision makers thy only think of themselves while down here time is not on anyone side.

  3. Government is messing around with us. They keep on delaying. This is our money. We are living in tough times. We need to pay our debts. How will we survive.
    Give us our money

    1. The reason people are resigning jobs are to pay debts …….if you are resigning because of 25000rand to get out of s..t then why we need this that money are just school fees and then………wake up we need atleast 300000rand

  4. We can’t rush for withdrawal without a clear understanding of the impact of such withdrawals. Legislation must be in place to govern the new system by the way 25000 is not enough to pull a person out of poverty. We can’t behave like we are at a jumble sale on such critical matters.

    1. I think our leaders must otherwise, there are people behind them, they don’t lead their jackets so implementation of the 1 march 2024 is important. So let it be

    2. true there but this will help millions and for those who have higher debt than 25 000 the can at least do something or wait or take the given 25k as a start to get out of the pit. all the funds companies were long told and all other stake holders they supposed to take this seriously or face mass resignations. time has been long given, 01 March will be the first phase and then everyone to see how it went and on the other hand people sort themselves out of challenges they phase, hospital bills or debt or emergency issues.

  5. There is too much round circles around this matter because it concerns poor people getting their monies they worked hard for. If it was a tax matter it would not even take a week to implement because they would be making poor people even poorer. Geez

    1. hhhhhhhhhhhhhhehehehehhe yes i think they just want tax deduction to be higher in diguise and that is why they taking time so yah you right

  6. The reasons for delaying implementation to 01-Sep-2024 are understandable. However, the amount to be transferred to the Savings Pot om implementation date must also be amended from the R30k cap to at least R80k cap

  7. Gondongwane n your dogs stop playing with us

  8. I, m so disappointed the way the government is doing things first and foremost that is my money, why do they say they are going to consult first for what ?
    Let me have my money so that my life can change that’s my pension either I must get quarter or half for the sake of betterment life that’s my intake…

    1. i think the delay for them to implement on the 01 march is to make space for corruption 🙂 they want to implement later so that the corruption will be implemented too

  9. Guys my children are at the universities I am struggling as we speak why wait DA helped us to see that you are oppressing us
    Implement on the 1 March 2023 since you agree with unions

  10. Government must stop playing hide and seek and give us our money. Date proposed first must stay 1st march 2024.
    We r drowning in debts they caused.

  11. Atleast the money must be 70 000

  12. ANC is testing the people’s power
    This thing won’t happen because after they (ANC) loose elections it will be the business of the new government and that new government will disown this decision. What is R25, 000 going assist us with? Absolutely nothing you won’t even see a slight improvement in your finances is just a waste of time and confusion

    Gatvol Gepf member

  13. How long does it take to make changes. When it came to feathering your own nests, the decision was overnight. Government keeps moving the goal posts. People are waiting in anticipation for this pro.ise and again Government is failing to deliver. I am very disappointed in this Government. Will you get my vote. The 01 March 2024 will be the deciding factor.

    1. We are working government but they refuse to assist us ,we are waiting for01 March 2024. A.N.C watch out failer to assist with our owed money really is selfish..

    2. Me too and this should now be all over social media now we are 1 month left now to be set free or help or given a piece of cake but the bottom line is it must be 1 march or no vote. and we must do this on all social media for them to see.

  14. Firstly , we need to awake from the lies and deceit this ANC government has been telling us. The reason for the delay is because the monies have been used up and does not exist. Come September 2024 you will see yet another delay, I can guarantee you all that.
    This type of lying straight to your face behavior is practiced by all ANC members.

    People , next year vote the ANC out if you still want to access YOUR OWN HARD WORKING MONEY next year September.

    Anc has only made themselves and their families fat on your misery and your families misery.

    You are the tax payer. It’s time to wake up and rise up

    Vote ANC out next year’s.

    1. No Vote for anc if dat changes

  15. 25 thousand is nothing

  16. We want our money b.4 elections cause after elections that will be something of the past no one will be talking two pots

  17. But I fail to understand that why is the government controlling our money, I think this government is the worse government compared to the apartheid one,this are gangsterism rulers

    1. First, was 30% ,then changed to two pot which limits is 25000 ,and the date was 1 March 2024 now changed to 1 September 2024 , guys this people are playing with our mide, they want us to vote first then they will change that date again, they still looking a way to eat money, when they got the way , they will release the money ‘they playing with us

  18. The government put us in debt with these high inflation rates, we need our money on the 1 March 2024 to assist us with some financial relief, yes it not much 25000 but it’s a lot for people who earn R5500 a month.

  19. I’m struggling to pay tution fees for my 3 children that are in Varsity, No bursaries or allowances. Yet I have a GEPF of 26 years that I can’t access. I am drowning in debts. Most people are dying poor after working for the government without having an opportunity to access their money. R25000 is not a lump sum. Please give us what we worked for.

  20. We have been promised this since covid started its nearly 4 years later we need this by the 01 march 2024 we all drowning in debt , look at the bond cost and the repo rate its killing us school fees had to be paid during covid we did not get paid and our debt are runing up how must we live to better one self stop playing around with the date more than enough time was granted for the 01-March 2024

  21. Even the R30 000 withdrawal is very little considering the high cost of living. It should have been at R100 000. Allow us to decide what’s best for us. It’s even concerning whether the funds are still available though.

  22. Unrealiable information

  23. Believe me or not ANC will not win elections in 2024. They lied to people and they also choose on their pension funds by allowing them to widraw R25 000 and which is nothing. You can’t pay off bond with R25 000. If president Cyril Ramaphosa can’t remove this current finance minister, he will be removed with ballots papers in 2024. The same president who refused to pay workers for the past three years will regrets his actions by next year. Mark my words.

    1. R100.000 atleast will cover depts not r25 000. Government disrespect us and they must honour their promises.We’ve waited for so long now is another story. No no no we will toyi-toyi we want our money

  24. We going to shut south Africa down if they don’t pay us 1 march 2024

  25. If you shift the date of long waited, be warned it will be your last term for ever in parliament Mr Godogodo.
    And opposition parties are that’s why they agree with you simply because they stand to benefit out of your blindness.

  26. I also think there is no funds, delaying tactics to buy time ,why is MIBFA not saying anything since this issue came up? They announced September 1 to be voted to power again,

  27. we have been working very hard for our money but restrictions on our monies ,this people are earning much salaries with our monies that why they careless about us ,there must be shutdown for the whole south Africa Mr president must you fail us too much advice your people to payoff our monies or else the world is drowning

    1. It’s really sickening how ur playing with our emotions, what kind of people ae u???ur thinking for urselves only en oppressing us because wer powerless…never again will ur anc get my vote wer sick en tired of ur dirty tricks…I for 1 thought ur with us on this but I now c I havbn a fool….

  28. Typical ANC government, well I’m not shocked at all as long they are in power the only results to be expected is promises and incompetence

  29. Le us just leave ANC to drown itstself

  30. R25 000 is nothing, i suggest if your pension nett is 800 000 give 80 000

  31. The new 2 pot system for the GEPF should not be implemented in September 2024. Taking monies out of the pension fund will actually reduce the pensionable amount at the time of retirement. This can be disastrous to the GEPF. There are no systems in place for the new 2 pot system. No workshops have been conducted. Is this another form of corruption & mismanagement of funds.
    September 2024 is too soon for implementation. Employees have no idea about the new system & how it is going to be implemented. The GEPF offices also have no understanding about the new 2 pot system when enquiring.

  32. The new 2 pot system should not be implemented for the GEPF. Workshops have not been conducted. Even the GEPF offices have no idea what is the new 2 pot system when you go to enquire. You need to be informed at least a year so people can make their decisions. People need to understand if you take out money from your pension funds you’ll have no monies left to enjoy your retirement that is why government should not implement this new 2 pot system. This will only lead to more fraud & corruption once you allow access into your pension funds. People need to be informed of the decisions made by the GEPF & given this complete year to make correct decisions of their way forward. This is a huge decision to make & government should not make drastic changes under a year to the pension funds without proper planning & informing each employee. Therefore we should be given a full complete year to understand these changes & implementation & how it is going to work and affect all GEPF employees. To the GOVERNMENT, Please do not make drastic decisions that we are unaware of to the GEPF. Give all employees over a year notice to understand the drastic changes made to the GEPF.

  33. Please note: Resignation means you are coming out of the system, whether old or new system, an employee is entitled to all their resignation benefits. We are Taxed on our monthly gross salary, why are we being heavily Taxed on the resignation benefit.

    1. we are taxed because this govrnment is corrupt.

  34. Why is the provident fund payout is a year later 1 March 2025 are you for real you people make stupid decision for us meanwhile we suffering and drowning in debts

  35. At the begginning of the story GEPF was excluded from withdrawals now inclusive story tellers beginning with bills our pension fund has nothing to do with bill of rights sanlam must give our withdrawals we are investing with as municipal workers fund.this thing must come to an end where are thid politics come in into our monies ,

  36. I also do not understand why they keep on postponing this ,this is our monies they we worked for is it bad if we want some of it while we are still alive?

  37. We really need that money this year. And i also think that if we get that money the economy will grow fast because people will spend that money. We have a lot of needs.

  38. no voting for anc if th date is changed – lets take this to the streets and social media we worked long and hard years we need a piece of a pie to enjoy, some people die in service without touching their long worked money – that is how government also is corrupt they know many will die, so they also bank on it, so the implementation date needs to be the 1st march 2024 and let those who need help be assisted, and the control of a limit 25 000 is good so that people dont blow (i blew it) their remaining retirement or balance.



  41. Is this only for people working for the government or for all employees?

    1. It is for members of all retirement funds.

  42. I know colleagues who cannot feed their children beyond five days after payday because they are over indebted. R 25 000 is not enough for us to get out debt and start a fresh.

  43. The sad part is that , in their homes they living luxuriously. This thing was proposed during covid time for 2023,they postponed to March 2024 no September for what ? Another thing what is 25000 gonna change in our lives . We suppose to get 100 000 and above . People are dying of depression because of the decisions taken by people that don’t care . All they do is to eat out money and invest to get profits out of our money ,yet the owners of the monies are struggling to even feed. Every pay day it’s stress . They will never ever get my vote even my family members. They have failed us countless time making empty promises all the time . They took our housing money without our approval yet also you don’t get it if you resign but they didn’t consult me before taking . I’m soo pissed off with these people .

  44. Is this money going to be withdrawn by public or by both public and private sectors employees?

    1. Two pots applies to public and private sector retirement fund members.

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