Early access to pensions will not cover GEPF - Treasury
Treasury has moved to clarify that members of the Government Employees Pension Fund (GEPF) will be excluded from new rules around the early withdrawal of pension.
Then finance minister Tito Mboweni said recently South Africans, who are battling financially due to the Covid-19 pandemic, would be allowed to make limited withdrawals from their retirement funds.
But this does not include GEFP, as it is not regulated under the Pension Funds Act.
In a statement released on Wednesday, Treasury said early access could become effective in 2022.
“The government has been engaging with trade unions, retirement funds, regulators and other stakeholders to discuss how to increase savings and improve preservation and allow limited withdrawals, without creating liquidity and investment risks.
“Any consideration for early access will require legislative and fund-rule amendments because the current law and policy prohibits any pre-retirement access to retirement savings unless an employee resigns or is retrenched. It is expected that the earliest that any changes would become effective for a new withdrawal mechanism is 2022.”
Treasury says retirement funds are designed to encourage individuals to save.
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