It contains 9 FAQs and is aimed at providing information on the basics of the Two-Pot Retirement system that is effective from 1 September 2024.

What is the “two-pot” system of retirement?
Who is it meant for?
Why the two-pot system?
How will it work?
What is seed capital?
Provident fund members 55 year or older on 1 March 2021
Where will the seeding come from for provident fund members less than 55 years old in 2021?
What is next in the process?
What should you do?

Click here to download the 4-page FAQ document:

Relevance to Auditors, Independent Reviewers & Accountants:

The new Pension Funds Amendment Act is yet another piece of legislation that your clients (who are pension funds) must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
As an auditor, independent reviewer and accountant, you need to consider your client’s compliance with the new Pension Funds Amendment Act, and be aware of guidance published by National Treasury.
As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for practitioners to keep abreast of any changes in so that they can continue to advise their clients accordingly.

Relevance to Your Clients:

Pension fund members who wish to apply to access portions of their pension funds from 1 September 2024, should be aware of guidance published by National Treasury.
As legislation, regulations and tax law are continuously changing and evolving, it is of utmost importance for individuals and pension funds to be aware of the latest changes that may affect them, e.g. the new two-pot retirement system.

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