TODAY OUR GUEST IS Thuli Magubane Director Mint Fresh Advisory Service. THE NATIONAL Treasury did not support the Pension Funds Amendment Bill that aims to allow workers who were in financial distress to access their pension savings through loans.
Treasury’s tax and financial sector policy head, Ismail Momoniat told Parliament’s standing committee on finance that the aim of retirement reform was to encourage savings and reduce poverty.
He said pension fund reform was necessary, because the many loopholes in the retirement regulations allowed people to cash in their entire pension and the aim is to encourage more annuitisation, so people could receive a regular monthly income in their old age.
He said it was critical that any access to retirement savings did not undermine the long-term objectives of the fund, and the Treasury was concerned that members would wipe out their funds by being allowed to take out loans.