FSCA: Updated Requirements for rule amendments to be submitted by retirement funds – 2-Pot System

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FSCA: Updated Requirements for rule amendments to be submitted by retirement funds – 2-Pot System

• 09 May 2024
• Regulatory Compliance and Legislation
• South African Accounting Academy

The purpose of this communication is also to outline the approach that the Authority will be taking towards applications for such amendments. The Two–Component System arose in terms of the Revenue Laws Amendment Bill, 2023 and the Pension Funds Amendment Bill, 2024.

Contents:

1. Purpose
2. Background
3. Requirements of the two-component system
4. Members of provident funds 55 years and over on 1 March 2021 and who are still members of the same provident fund
5. Liquidations
6. Other members exempted from the two-component system
7. Requirements for Defined Benefit Funds
8. Deductions in terms of Section 37D of the PFA
9. Other
10. Member communication
11. Submission of two-component amendments
12. Enquiries

Click here to download Communication 16 of 2024 (RF):

https://www.fsca.co.za/Regulatory%20Frameworks/Regulatory%20Frameworks%20Documents/FSCA%20Communication%2016%20of%202024%20(RF).pdf

Relevance to Auditors, Independent Reviewers & Accountants:

• Auditors, independent reviewers and accountants must ensure that they are aware of the latest news that is published by regulators, such as the FSCA.
• As an individual, you need to understand the proposed 2-pot system and its implications – also to be able advise clients on possible withdrawals in Sep 2024.

Relevance to Your clients:

• Relevant financial institutions must ensure that they are aware of the latest news that is published by regulators, such as the FSCA.
• As an individual, your clients need to understand the proposed 2-pot system and its implications – especially where they plan on possible withdrawals in Sep 2024.

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