Call for comment: retirement reform and non-retirement tax free savings products
19 March 2014
Posted by: Author: National Treasury
Author: National Treasury
The National Treasury published two papers for comment that provide details on the proposed retirement reforms and tax free savings products as announced by the Minister of Finance in his budget speech last month.
The papers follow on the initial overview document on retirement reform, titled "Strengthening
Retirement Savings: Overview of the 2012 Budget Proposals” (May 2012). The papers are also
consistent with the shift towards a Twin Peaks system of regulating the financial sector, as
initiated by the publication of the document titled "A safer financial sector to serve South Africa
better” (February 2011). In particular, to ensure that customers or members of retirement funds
are treated fairly at all times, including after they retire.
The papers, together with their backgrounds are the following (please click on the name of the paper to open the it):
1. 2014 Budget update on retirement reforms
This paper provides more details on the retirement reform announcements made by the Minister
of Finance in his 2014 Budget Speech. It responds to public comments received in respect of
the two papers on retirement reform titled "2013 Retirement reform proposals for further
consultation” (released on 27 February 2013) and "Charges in South African retirement funds”
(released on 11 July 2013) and summarises the process of retirement reform from 2011 until the present, and lays out a future direction for the implementation of reforms over the next few years.
2. Non-retirement savings: tax free savings accounts
This paper provides more details on the non-retirement savings reform announcements made
by the Minister of Finance in his 2014 Budget Speech and the Budget Review. The Minister
announced in his speech that: "Legislation to allow for tax-exempt savings accounts will proceed
this year, to encourage household saving”.
This paper lays the basis for the legislation that will be published for public comment by July
2014, and for tabling and enactment thereafter in the newly-elected Parliament before the end
of the year.
Please click here to access the media statement.
The SAIT will be making a submission to Treasury. All members are urged to let their voice be heard in the forming of South Africa's legislation and are accordingly requested to forward any comments on the above two papers to email@example.com by no later than 28 April 2014.