National Treasury has extended the comment period on the draft default pension regulations released under the Pension Funds Act.
In July, Treasury released the far-reaching draft regulations, which, if implemented, will oblige your retirement fund to preserve your savings in the fund if you resign, provide a default pension on retirement, and have a default investment strategy.
The comment period closed on September 30, but Treasury has extended the deadline to October 31.
The draft regulations propose that your fund offer you a life assurer’s guaranteed annuity as a default. If it offers you a living or with-profit annuity, it must be provided by the fund itself.
The default investment strategy should exclude performance fees, loyalty bonuses or any similar cost structures.
You will still be able to withdraw your savings on resignation, but before doing so, you will have to see a consultant, who will explain the consequences of this for your retirement, and you will have to sign a written request to withdraw.
The draft regulations are available at www.treasury.gov.za and comments should be submitted to Ms Alvinah Thela, Director: Retirement Funds, Private Bag X115, Pretoria, 0001 or by email to [email protected]