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.