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.