Pension Funds Amendment Bill: adoption

NCOP Finance

19 April 2024
Chairperson: Mr Y Carrim (ANC)
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Meeting Summary


The Select Committee on Finance considered and adopted the Pension Funds Amendment (PFA) Bill and the accompanying Committee Report.

The objective of the Bill is to amend the Pension Funds Act (PFA), of 1956, the Post and Telecommunications Related Matters Act (PTRMA), of 1958, the Transnet Pension Fund Act (TPFA), of 1990 and the Government Employees Pension Law (GEPL), of 1996, to enable retirement funds to implement the amendments to the Income Tax Act (ITA) contained in the Revenue Laws Amendment Bill (RLAB). The amendments in the RLAB give effect to the policy objectives of the “two-pot” system.

The Committeed accepted the Bill with proposed amendments.

Meeting report

The Chairperson welcomed all those that were present in the meeting.

He pointed out that while the Committee had been through the Bill informally it had not yet gone through its report, which was sent on the previous day at 19:48. The report was also shared with the department, which made subsequent inputs.

He asked if any apologies were tabled.

Mr Nkululeko Mangweni (Committee Secretary) indicated that no apologies were tabled.

Thereafter, he asked for the Bill to be flighted for the Committee.

Consideration and deliberation of the PFA Bill

Ms Empie Van Schoor (Chief Director: Legislation at the NT) took Members through the Bill. She began by stating that the department had sent two documents to the Committee. One, the B-Version of the Bill, which included the proposed amendments and technical corrections. Two, the list of all the amendments.

The department would only focus on the proposed amendments, she added.

The Chairperson mentioned that after the department had presented the Bill it would be put up to a vote.

Amendment to Section 1 of the Pension Funds Act

Ms Nomalizo Bulisile (Director: Financial Sector and Legislation at the NT) stated that a new definition for beneficiary fund was proposed by the department

Amendment to Section 1 of the Post and Telecommunication-related Matters Act

Ms Bulisile mentioned that the department proposed a substitution of sub-clause 2, which states ‘a loan or guarantee has been furnished by an employer’. This is to align the Post and Telecommunication-related Matters fund with other funds, as per the department policy that employers at that stage are not eligible to issue loans as they have a number of other consequential requirements that they are yet to meet. She pointed out that this proposal was not included in the B-Version of the Bill.

The department also proposed the inclusion of sub-clause 4 to the Bill.

Clause 23 of the Bill

Ms Bulisile said that the department proposed an inclusion of a new sub-clause 5 which sought to prevent pension fund members from withdrawing a savings benefit where there is a maintenance order or a written notification from the maintenance investigating officer against the designated retirement fund in place.

After the presentation concluded, the Chairperson requested a mover for the adoption of the Bill.

Ms L Moss (ANC, Western Cape) moved for its adoption.

Ms D Mahlangu (ANC, Mpumalanga) seconded the mover.

Mr D Ryder (DA, Gauteng) indicated that the DA supported the Bill.

Mr F Du Toit (FF+, North West) mentioned that the FF+ also supported the Bill.

Mr Moletstane (EFF, Free State) said that the EFF reserved its position.

The Bill was duly adopted by the Committee.

Committee report on the PFA Bill

The Chairperson took the Committee through the report.

No further changes to the report were proposed by Members.

The Chairperson requested a mover for the adoption of the report.

Mr Ryder moved for its adoption.

Mr W Aucamp (DA, Northern Cape) seconded the mover.

The report was duly adopted.

The Chairperson thanked the department for the work it had put into the Bill. He highlighted that the Bill would be tabled in the House for tabling on 25 April.

He also indicated that the Committee, National Assembly and Minister, had received a letter from a number of organisations objecting to the Public Procurement Bill. There were three aspects of the letter he asked Members to consider. One, the claim that civil society organisations had only engaged with the department and not Parliament. Two, their request for the Committee to send the Bill’s text to them. Three, their concerns around the constitutionality of the Bill.

A draft programme for the rest of the term was shared with Members, and he asked that they provide comments on it next Tuesday.

The meeting was adjourned.


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