fbpx

pension funds

Dr Dion George, MP intends to introduce the Pension Funds Amendment draft Bill, 2020 in Parliament.

Section 19 of the Pension Funds Act, 1956 (Act No. 24 of 1956) (“the Act”) currently enables pension fund members to access a loan, where the pension fund asset acts as security for such a loan, in order to obtain a home loan. However, the Act does not permit pension fund members to obtain a loan for any other purpose. The draft Bill therefore seeks to amend the Act in order to allow for pension fund members to obtain a loan, secured by a guarantee from a registered pension fund.

Interested parties and institutions are invited to submit written representations on the proposed content of the draft Bill.

417 participants (closed 17 October)

DearSA-pension-funds-amendment
Dear South Africa

Have your say – shape this policy.

    Do you support the proposed Pension Funds Amendment Bill (view summary)?

    [CAMPAIGN CLOSED]

    SUMMARY

    The draft Bill seeks to amend the Act in order to allow for pension fund members;

    • to obtain a loan, secured by a guarantee from a registered pension fund,
    • to alleviate financial pressure during the COVID-19 emergency or any other emergency similar to COVID-19.
    • The draft Bill provides for a registered pension fund to offer a guarantee to a pension fund member of a maximum of 75% of their share in the value of the fund.
    • By enabling a member to access a pension-backed loan, that member will be able to leverage their pension fund investment prior to their retirement date, without eroding their provision for eventual retirement.
    • Lending institutions will be enabled to offer loans to pension fund members at competitive interest rates and over extended or deferred payment periods given that the loan is fully guaranteed.

    IN THE MEDIA

    DOWNLOAD DOCUMENTS

    ENABLING YOU TO SHAPE GOVERNMENT POLICY

    Dear South Africa is a legally recognised and constitutionally protected non-profit platform which enables the public to co-shape all government policies, amendments and proposals. We’ve run many successful campaigns and have amassed a considerably large active participant network of over 750,000 individuals across the country and beyond.

    We do not run petitions. We run legally recognised public participation processes which allow citizens to co-form policy at all levels of governance. Whereas petitions, even if they contain thousands of signatures, are considered as a single submission by government, our process ensures that each comment made through dearsouthafrica.co.za is recognised and counted as an individual submission by government.

    Furthermore, we keep an accurate record of all participation and produce a publicly available report at the end of each project. This report forms the foundation of a sound legal case should the necessity to challenge the decision arise.

    Participation costs you NOTHING, and is so easy and quick to do through the platform that you really have no excuse not to help shape policy BEFORE it becomes law. Legally challenging implemented law is costly and rarely successful. Prevention is better than cure.

    Participation in decision-making processes means a possibility for citizens, civil society organisations and other interested parties to influence the development of policies and laws which affect them. We’ve made it easy for you as a responsible citizen of South Africa, to influence government decisions before they are made.