Question NW775 to the Minister of Finance

Reply:

The Revenue Laws Amendment Act and Pension Funds Amendment Act were first published for public comment in June 2023 and went through two rounds of public comment/consultation. This was followed by further public hearings process through Parliament.

To improve communication on the two-pot retirement system, the National Treasury worked with the Government Communication and Information Services to engage with government employees in the various departments. National Treasury also hosted a webinar with the media on the two-pot system, to ensure that the media is equipped with correct information for factual reporting and information dissemination.

The National Treasury has also published on its website a Question-and-Answer document, and slides used during the information sessions on the two-pot retirement system. This document will be updated as the need arises. Media engagements in the form of radio, TV and Op-Ed were also had in various official languages.

The Financial Sector Conduct Authority (FSCA) and Government Employees Pension Fund (GEPF) have also conducted several webinars and information sharing sessions with union funds and GEPF members, respectively.

Following the promulgation of the two-pot system legislation, the FSCA embarked on an awareness/educational campaign, targeted at trade union federations such as COSATU, FEDUSA and SAFTU. The FSCA also held in-person and/or virtual meetings with union funds shop-stewards for the message to filter down to the members. In addition, a brochure has been prepared and provided following these engagements. In addition, the FSCA will be monitoring the member education that is provided by funds and benefit administrators.

It should be noted, however, that it remains the responsibility of the fund to educate members on the two-pot system pursuant to section 7D(1)(c) of the Pension Funds Act, 24 of 1956.