South Africa’s National Assembly has officially passed the Revenue Laws Amendment Bill, clearing the way for important refinements to the two-pot retirement system introduced in September 2024.
While the bill does not introduce major structural changes, it provides key clarifications and technical alignments to ensure the system operates efficiently for retirement fund members, administrators, and regulators alike.
Key clarifications in the Bill:
Seeding amount timing
Funds now have the option to calculate the initial seed amount (available for early withdrawal) using either 31 August 2024 or the last day of the election month, in line with their rules and member communication.
Definitions of member interests
The bill clarifies how deductions under section 37D (such as divorce or maintenance orders) will proportionally reduce all three retirement components.
Retirement Annuity Fund alignment
Technical updates were made to the definition of a “retirement annuity fund” to maintain legislative consistency across the system.
Public engagement and future reforms
The bill follows months of public consultation via Parliament’s Standing Committee on Finance.
National Treasury has confirmed that further changes are expected in upcoming legislative cycles – including the potential removal of the “one-fund withdrawal” restriction, which currently limits access to funds from only one retirement product.
With the National Assembly’s approval, the bill will now proceed to the National Council of Provinces for further review.
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