pension fund news south africa

The Special Tribunal has declared that the interdict not to pay the pension fund of former CFO of the department of agriculture, land reform and rural development Jacob Basil Hlatshwayo has … Right now there are three ways for South Africans to access money from their pension funds before retirement: cash it out under very specific circumstances, such as when changing jobs and money goes into a preservation fund (and take a big tax hit); emigrate, which allows access to money in a retirement annuity, or get the pension fund to underwrite a home loan. Rex Cowley, director at Overseas Trust & Pension, told International Adviser: “The proposed relief to South African expats who are migrant workers but resident in South Africa for tax, and benefit from the Foreign Employment Exemption, is clearly welcomed. The limits of Regulation 28 are increasingly becoming a major drawback to pension fund investing. The new proposal will allow retirement funds to invest 45% of the money they manage in South African infrastructure, though there will be a limit (25%) on how much can be invested with a single entity. Walk-in Centres in all nine provinces of South Africa. Pension Funds Amendment Bill (B30-2020) Business of Parliament » Legislation » Bills Currently in Parliament » Bill To amend the Pension Funds Act, 1956, so as to enable pension fund members to access a percentage of their pension fund before retirement as guarantee for a loan; and to provide for matters connected therewith. Would you like to comment on this article or view other readers' comments? Alternative Investments by Pension Funds in Kenya. Upon withdrawal of your pension fund, you will be taxed per the withdrawal lump sum tax table above, which applies cumulatively to all your fund withdrawals. Treasury said that the proposed review of Regulation 28 is informed by calls for increased investment in infrastructure given the current low economic growth climate. South Africa’s main state-owned DFIs are the Industrial Development Corporation and the Development Bank of Southern Africa. The National Treasury has published its draft amendments to Regulation 28 of the Pension Funds Act for public comment, detailing the projects which South African pension funds … “Changes should be made to … “The Nedlac constituencies also agree to accelerate the introduction of auto-enrolment for all employed workers, and the establishment of a fund to cater for … The impact of retirement reform in South Africa By Opinion Nov 20, 2020 Changes to retirement benefits for provident fund members, initially meant to … It’s been a testing 48 hours of so for South Africans with one eye on their pension funds. 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The National Treasury has published its draft amendments to Regulation 28 of the Pension Funds Act for public comment, detailing the projects which South African pension funds … A continental perspective on Pensions for pension professionals. After declaring the interdict to have lapsed, Modiba removed the matter from the roll and ordered the SIU to pay Hlatshwayo’s wasted costs occasioned by the removal. South Africa’s government is encouraging pension funds and other private investors to back an infrastructure drive. AFRICA FOOT PRINT Read More. Billions unclaimed from pension funds Thursday 15 October 2020 - 5:18am Over R50-billion in unclaimed pensions is waiting for the rightful owners to show up. This would allow workers who have fallen on financially hard times because of the devastating impact of the COVID-19 pandemic to be able to access a percentage of their Pension Fund money before retirement. 1.245 trillion and 13.2 percent of GDP. 70% of your assets must be invested in South Africa assets. What is the tax on pension fund withdrawals in South Africa? It’s worth noting that prescribed assets haven’t been implemented in South Africa since 1989. Register (it’s quick and free) or sign in now. It was suggested at the start of the week that a desperately-indebted … After six months of talking with the private sector and banking institutions, government is now in talks with pension fund managers around possible infrastructure investment in the … The South African rail, port and pipeline company, Transnet, is accused of embezzling money belonging to its pension fund. The draft change proposes that the overall investment in infrastructure across all asset categories, may not exceed 45% in respect of domestic exposure and an additional limit of 10% in respect of the rest of Africa. Funds can invest another 10% in African infrastructure outside of South Africa, which could bring the total maximum infrastructure exposure to 55%. Whilst our yields are still attractive by global standards, we know that investing solely in fixed interest securities for the long term is not the way to get superior risk adjusted returns. “The current regulation does not define ‘infrastructure’ as a specific category, which is currently spread across a number of asset classes like equity, bonds, loans and private equity. This is the minimum age for the state pension. The South African government says that while there’s a general understanding that citizens retire at … Stock photo. The proposed amendment seeks to increase investment in infrastructure and stimulate economic recovery. Avoid a tax horror story by going in knowing exactly what to expect. The Special Tribunal has frozen the pension fund of the former CFO of the department of agriculture, land reform and rural development, Jacob ... Gauteng premier David Makhura has committed his government to addressing the looting of state resources in the fight against the Covid-19 pandemic. Good news. DEVOPS ENGINEERS | 16-18 September 2020 | SOUTHERN SUN | HYDE PARK. An alliance between South Africa’s ruling party and labour unions is pushing for the mobilization of domestic pension funds to… In our current Latest Edition. Judge Lebogang Modiba granted the interdict in December on condition that the SIU institutes an action against Hlatshwayo by March 1. Funds can invest another 10% in African infrastructure outside of South Africa, which could bring the total maximum infrastructure exposure to 55%. Some of the infrastructure projects which have been identified by the president include: While the infrastructure plan has been welcomed by the private sector, businesses have expressed disappointment at government’s failure to properly and speedily execute it, noting the 2021 budget indicated a R70 billion underspend. In his 2021 state of the nation address, the president said that government has now developed an infrastructure investment project pipeline worth R340 billion in network industries such as energy, water, transport and telecommunications. New default regulations to the Pension Funds Act will be implemented from 1 March 2019. 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. These are further broken down in the 2014 Act as follows: A ‘massive rollout of infrastructure throughout the country’ is one of the key interventions identified as part of president Cyril Ramaphosa’s Economic Reconstruction and Recovery Plan. According to the National Treasury, the ratio of total pension fund assets to GDP in South Africa was about 63%, which compares favourably internationally. Government of South Africa (Pretoria) press release Amendments to Regulation 28 of the Pension Funds Act to encourage investment in infrastructure: request for public comment deadline An interdict stopping the payment of pension benefits for former agriculture, land reform and rural development CFO Jacob Basil Hlatshwayo has lapsed. 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Industry News; Interviews; Gallery; Contact us; 4th Pension Funds and Alternative Investments Africa Virtual Conference REQUEST MORE INFO REGISTER ONLINE A Month of Virtual Events! The SIU obtained the interdict to prevent the withdrawal and payment of Hlatshwayo’s pension benefits pending the action it intends instituting against Hlatshwayo to recover any damages or fruitless expenditure resulting from awarding the tender to Black Dot. 1 March 2021 marks a watershed for retirement funds in South Africa, says Jean du Toit, attorney and head of tax technical at Tax Consulting South Africa. This was in breach of the instructions issued by the National Treasury to regulate emergency procurement in the wake of the Covid-19 pandemic. South Africa Proposes Pension Fund Rule Amendment March 2, 2021. The Department of Employment and Labour announced on Tuesday 27 October that the Compensation Fund is in the process of validating pensioners through “data cleansing”. JOHANNESBURG — South Africa’s National Treasury is proposing changing rules governing pension funds to encourage investment in infrastructure projects. Nigeria: NCDMB Inaugurates Second Group of ‘Project 100’ Companies March 2, 2021 Forewarned is forearmed, and when it comes to matters of tax it’s always good to be prepared. South Africans need to be able to leverage their pension savings to get through Covid-19, says Democratic Alliance MP Dion George. The SIU alleges Hlatshwayo irregularly and unlawfully awarded a tender valued at R11.5m to a corporate entity called Black Dot to supply the department with Covid-19 personal protective equipment. “Consequently, current data from retirement funds does not record the exact investment in infrastructure.”. According to the 2007 annual report of the Financial Services Board, total pension fund assets amounted to ZAR 1,284 billion (EUR 172 billion) in 2005, up from ZAR 1,098 billion (EUR 143 billion) in 2004. Hlatshwayo was dismissed from his position in October for misconducted unrelated to this tender. The proposed Regulation 28 amendments use the same definition for infrastructure as the Infrastructure Development Act of 2014. Whilst our yields are still attractive by global standards, we know that investing solely in fixed interest securities for the long term is not the way to get superior risk adjusted returns. Busha ploughed R200-million of workers’ pension funds into Shepherd Bushiri Investments (SBI), which operates a chain of hotels in Africa and Europe. News. By ANA Reporter Feb 27, 2021 Johannesburg - South Africa's National Treasury is proposing changing rules governing pension funds to encourage investment in infrastructure projects. Pensions Africa® is a continental authoritative magazine covering news, interviews, developments, investments, analyses and commentary on topical issues within the African pensions industry and is circulated to pensions professionals, companies and all key stakeholders across Africa. According to the 10X retirement reality report released last year, only 6% of South Africans had enough savings to retire comfortably. Communication and information technology installations; Electricity transmission and distribution; Human settlements and related infrastructure and facilities; Oil or gas pipelines, refineries or other installations; Power stations or installations for harnessing any source of energy; Productive rural and agricultural infrastructure; Lanseria Smart City which will become home to between 350,000 to 500,000 people within the next decade; Phase 2A of the Mokolo and Crocodile River Project, and the uMkhomazi Water Project; Road projects worth R19 billion covering the spine of the South African road network; The construction and rehabilitation of the major N1, N2 and N3 highways; The Student Housing Infrastructure Programme which aims to house 300,000 student beds; SA Connect, a programme to rollout broadband to schools, hospitals, police stations and other government facilities. According to the 10X retirement reality report released last year, only 6% of South Africans had enough savings to retire comfortably. As at June 2019, the pension assets stood at Kshs. Related news and articles. The debate over proposed amendments to the Pension Fund Act of 1956 is heating up. © 2021 Arena Holdings (Pty) Ltd. All rights reserved. GEPF is a defined benefit pension fund that was established in May 1996 when various public sector funds were consolidated. Under this Act, infrastructure includes installations, structures, facilities, systems, services or processes which are strategic integrated projects, or part of the national infrastructure plan. On December 17 last year, the Special Investigating Unit successfully applied to interdict the Government Employees Pension Fund (GEPF) from paying benefits due to Hlatshwayo after its investigation into tender irregularities at the department. Government of South Africa (Pretoria) press release Amendments to Regulation 28 of the Pension Funds Act to encourage investment in infrastructure: request for public comment deadline Events July2020. August2020. The millions invested in SBI allegedly contributed to the construction of its first hotel on South African soil, the Sparkling Waters Hotel and Spa near Rustenburg. Please read our Comment Policy before commenting. Prescribed assets were first introduced in South Africa in 1956, when pension funds were required to invest more than half of their assets into government and state-controlled firms’ bonds. Theoretically, the retirement age in South Africa is currently 60 for both males and females. As companies are pushing code faster and more often than ever, the rate of vulnerabilities in our systems is accelerating. The guarantee could be for up to 75% of your pension savings. The Special Tribunal has declared that the interdict not to pay the pension fund of former CFO of the department of agriculture, land reform and rural development Jacob Basil Hlatshwayo has lapsed. Read: Around 23,000 tax residents leave South Africa each year – and government is about to tighten the noose. In fact, there is no specific retirement age in law. All pensioners … 70% of your assets must be invested in South Africa assets. How retirement reform affects members. Importantly, pension funds are not obliged to invest any money in infrastructure - but they can if they want to. The pension sector in Kenya has continued to grow both in numbers and in assets. The Association for Savings and Investment South Africa (Asisa) is in the process of putting together a working group to deliberate on the issue of allowing workers access to their retirement funds. The limits of Regulation 28 are increasingly becoming a major drawback to pension fund investing. The government pension fund had been interdicted from paying Hlatshwayo after an investigation into PPE tender irregularities. The SIU indicated to Modiba that it intends bringing an application to revive the lapsed interdict. The Special Tribunal has declared that the interdict not to pay the pension fund of former CFO of the department of agriculture, land reform and rural development Jacob Basil Hlatshwayo has … From 1 March 2021, retirement benefits from provident funds will be treated in the same way as pension funds … September2020. Gauteng education MEC Panyaza Lesufi says his department is ready to commence with the 2021 academic year as more than 1.5 million pupils prepare to ... Eastern Cape schools are going to extreme lengths to be ready for the reopening of schools on Monday because they have received little to no ... Former agriculture department CFO can get his pension after tribunal finds interdict has lapsed. He pans to put forward an amendment the Pension Funds Act that would allow funds to guarantee loans for their members. Home Pension Increase. A watershed ruling by the Supreme Court of Appeal (SCA) in Bloemfontein on November 2 represents a positive upshot for pension funds in South Africa … The National Treasury has published its draft amendments to Regulation 28 of the Pension Funds Act for public comment, detailing the projects which South African pension funds could soon invest in. Comments section policy: Any attacks on BusinessTech, its journalists, or other readers will result in a ban. Projects worth 2.7 trillion rand are being considered over the next decade. Covering all the News & Insights for pension professionals. Treasury said that the official deadline for comments on the proposed amendments to Regulation 28 is 29 March.

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