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Treasury opposed to Pension Funds Act changes allowing members access to loans Treasury was taking part in public hearings on the Pension Funds Amendment Bill which is aimed at giving people who find themselves in dire financial straits a chance to access their pension savings to ease their distress without first having to quit their jobs. Treasury Deputy Director-General Ismail Momoniat. Picture: @TreasuryRSA/Twitter
20 hours ago
CAPE TOWN - National Treasury said that it was opposed to changing the Pension Funds Act to allow members to access a portion of their savings before retirement as a guarantee for a loan.
Treasury was taking part in public hearings on the Pension Funds Amendment Bill which is aimed at giving people who find themselves in dire financial straits a chance to access their pension savings to ease their distress without first having to quit their jobs.
Pension changes for South Africa under the spotlight
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Parliament’s Standing Committee on Finance has invited interested parties to submit written submissions on the Pensions Funds Amendment Bill.
Introduced by the opposition Democratic Alliance, the bill aims to amend the Pension Funds Act to allow pension fund members to access a portion of their fund before retirement as a guarantee for a loan.
The DA has described the draft bill as crucial in the fight for ‘people power over state power’ in South Africa.
“Individuals should be free to choose, in unison with the trustees of their pension funds, how their own financial assets are utilised when it comes to providing collateral for responsible loans,” it said in an explanatory statement.