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Retirement Act - what is going on?

The link to the Treasury Press Release is below.    It appears that the annuitisation is delayed, however the document released is a proposal and the final information will be covered in the budget speech on the 24th February, 2016 by Pravin Gordhan, current Minister of Finance.
Much time and expense has been incurred by many companies to ensure compliance with the new act. 
It appears that both Nedlac and Cosatu are objecting to a lack of consultation, with two major issues on the table:
  • The savings are part of worker’s income, and should be accessible to the workers, as and when they need them, particularly with no comprehensive social security in place
  • The fact that a comprehensive social security and retirement reform discussion paper has not been published.
There has been general communication regarding the Taxation Laws Amendment Act (TLAA).  It was promulgated in 2013 and signed into law on 8 January 2016 i.e. with an effective date of 1 March 2016.
The TLAA included provisions to:
  1. Harmonise the tax treatment of retirement contributions to pension, provident and retirement annuity funds; and
  2. to enforce annuitisation on provident fund members at retirement on amounts saved after 1March, 2016, should they be above the de minimus of R247 500..
 Our understanding is that the provision for tax deductions of contributions i.e. the member deduction of 27.5% will go through but that the annuitisation (one-third / two-third provision) for provident fund members could be postponed until March 1st, 2018.
Links, References and Notes

Accsys provides people management solutions ie Payroll, Human Resources (HR), Time and Attendance as well as Access Control/Visitor Management.
The company develops, implements, trains and services our solutions.  We provide readers, turnstiles, booms and CCTV.
We run both on premise and in the cloud, as well as mobile options for ESS.  Recruitment, online education and Outsourcing are part of our offering, too.
http://www.accsys.co.za/accsys-peopleplace-talent-management
email:      tschroenn@accsys.co.za
twitter:   @TerylSchroenn
Note:   Thank you for reading Teryl@Work.   Should you wish to use any of the material, please acknowledge this blog as the source.
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