By Lehlohonolo Lehana.
Parliament’s National Assembly has passed the Pension Fund Amendment Bill, which allows for the amendment of retirement rules, on Thursday.
The Pension Funds Amendment Bill will, from September, require that funds be divided into three components or “pots,” split between savings, retirement and a vested portion.
It will also allow members to transfer or withdraw savings in the event they change or lose their job. Fund members can choose if they want to opt into the new system.
Introduced by the finance minister when he tabled the national budget in February, the Pension Funds Amendment Bill is intended to give relief to many cash-strapped citizens buckling under the pressure of the high cost of living.
Now employees won’t have to resign their jobs to get their hands on their retirement savings.
The NCOP has also made amendments to protect retirement savings from divorce and maintenance orders.
But opposition parties blame government’s slow economic growth for putting workers in this position.
The Inkatha Freedom Party (IFP)’s Liezl van der Merwe: “For the government to seek to advance into law legislation that gives people the opportunity to access these funds ahead of retirement, may seem noble in its intentions, but in the long run, it might yield disastrous outcomes.”
Al Jama-ah’s Ganief Hendricks said that these amendments would do more harm.
“These amendments are going to harm people when they reach the age of 60, and they’ve drawn from their pension fund.”
The bill will now be sent to the president for assent, in preparation for it to come into effect by 1 September.
The National Assembly on Thursday, also passed the Basic Education Laws Amendment Bill following months of wrangling by MPs.
A total of 223 MPs voted in support of the bill, while 78 voted against it.
It will now be sent to President Cyril Ramaphosa to sign into law.
The BELA Bill proposes several changes to the South African Schools Act, including transferring control to the Education Department to determine a school’s language policies and curriculums.
Basic Education Minister Angie Motshekga described the passing of the Basic Education Laws Amendment Bill as a “watershed moment” for the sector.
Motshekga believes the changes are necessary to improve the quality of education.
“Much has been written about this bill, and much has been said about it, most of which are lies.
“I appeal to the detractors of public schooling and this government to desist from spreading fear and lies in the public discourse to advance sectoral interests.”
The minister said there is still a need to demystify the myths about the BELA Bill amid threats of legal action from several organisations.