n Personal Finance Newsletter - Tax benefits continue, annuitisation postponed : retirement reform

Volume 2016, Issue 422
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FOLLOWING THE decision by Cabinet on 17 February 2016 to able a legislative amendment to the Taxation Laws Amendment Act, and the media briefing by Minister Jeff Radebe, National Treasury would like to provide further details. Cabinet has noted the concerns that have been raised in respect of the retirement reforms relating to the requirement to purchase an annuity at retirement (i.e. to receive a regular monthly income during retirement instead of a lump sum) for provident fund members. Despite extensive consultation processes since 2012, government is proposing that the annuitisation requirement for provident fund members be postponed for two years to allow for further consultation with key stakeholders. Government has already initiated this consultation process, by requesting a special meeting with all NEDLAC social partners, which took place on 15 February 2016. Government has also engaged with non-NEDLAC stakeholders like NUMSA via separate Section 77 (of the Labour Relations Act) hearings.

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