# pension funds

- Link: https://dearsouthafrica.co.za/pension-funds/
- Published: 2020-09-23T10:46:16+02:00
- Author: dearSA

[ Browse the DearSA website](https://dearsouthafrica.co.za/pdps/)

### 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)

[view a report on the public participation ](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/10/20190859/pension-funds-amendment-bill-report-.pdf)

[click to download a PDF of the public comments (0.5mb) ](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/10/20190901/pension-funds-redact-s.pdf)

![DearSA-pension-funds-amendment](https://cdn.dearsouthafrica.co.za/wp-content/uploads/
2020/09/20190916/pension-funds-amendment.jpg "pension-funds-amendment")

![Dear South Africa](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/09/
02102235/DearSA-logo-s-100x31.jpg "DearSA-logo-s")

## Have your say – shape this policy.

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### 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

 * Business Tech – [New pension law proposed for South Africa](https://businesstech.co.za/news/finance/434827/new-pension-law-proposed-for-south-africa/)

### DOWNLOAD DOCUMENTS

 * [Notice of intention](https://cdn.dearsouthafrica.co.za/wp-content/uploads/2020/09/20190917/200918pensionfundsamendmentbill-notice.pdf)

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