It May Soon Be Possible to Withdraw a Portion of Money from Your Pension Fund

It May Soon Be Possible to Withdraw a Portion of Money from Your Pension Fund

  • The National Treasury has revealed that there are ongoing discussions regarding the process to make changes to the Pension Fund Act
  • The Act currently only allows for withdrawals under three circumstances, but now a plan is being put in place to allow withdrawals of one's pension fund in case of an emergency
  • National Treasury stated that the changes to the law will be finalised next year after it gives an update before the Medium Term Budget Policy Statement

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DURBAN - The process to change the law to allow for the withdrawal of a portion of one's retirement fund is unfolding and National Treasury has made calls for those keen to do so to be patient as the process continues.

Treasury says that the process to make changes to the law will be finalised in 2022. At the moment, the Pension Fund Act only allows citizens to access their money when they resign, retire or are retrenched from their places of work.

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Now, discussions about the law changing to allow for money to be accessed during emergencies and other circumstances have started.

Pension Fund, National Treasury, early withdrawal, emergency situations
National Treasury has revealed that there are ongoing discussions about earlier withdrawals of pension funds. Image: Waldo Swiegers/Bloomberg
Source: Getty Images

According to SABC News, Treasury stated that before the next Medium Term Budget Policy Statement in Parliament, an update on the above will be given. Only after this will the process begin to alter the law.

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In the interim, the SA government is making calls for workers to stop calling for their pension funds. BusinessTech reported that the Government Employees Pension Fund (GEPF) will not be covered under this withdrawal process as the Pension Fund Act does not regulate this. In addition to this, Covid-19-related withdrawals will not be allowed.

Government creates a plan to bring Eskom back to the top and stop loadshedding

Previously, Briefly News reported that the Public Works and Infrastructure Department has reportedly published a plan involving the South African Government's important developments up until the year 2050. It is called the National Infrastructure Plan.

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One of the main points of the plan is the country's energy supply. Government proposed a move from fossil fuels and therefore the ongoing loadshedding within 30 years. The DPWI stated that loadshedding has been caused by a number of factors.

A report by BusinessTech revealed that while the majority of the plan of action focuses on changes that will be put in place by 2050, there is a specific section that focuses on direct and immediate changes planned to be implemented within the next three years.

Source: Briefly News

Authors:
Reeshni Chetty avatar

Reeshni Chetty Reeshni Chetty is a senior current affairs reporter. The Damelin journalism and media studies graduate was top of her class with 16 distinctions and she boasts experience in radio, print and digital media. When Reeshni is not rushing to bring you the most important and breaking news in current affairs, she's raising awareness around mental health. Reeshni has a passion for breaking the stigma surrounding mental health issues.

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