Two-pot system – Update on implementation date on 1 September 2024

We have previously provided details on the two-pot system as government’s proposals have unfolded and changed. The information below is the latest news.

The Revenue Laws Amendment Bill (“RLAB”) (containing the two- pot system changes to the Income Tax Act) went to the Minister of Finance for a response to the Standing Committee on Finance (“SCOF”).

The Minister recommended 1 September 2024 as an implementation date and SCOF accepted this date. The RLAB must now go to the National Assembly and thereafter the National Council of Provinces for concurrence. Both the RLAB and Pension Funds Bill (containing amendments to the Pension Funds Act related to the two-pot system) will be tabled on 8 February 2024 when Parliament re-convenes.

The FSCA intends to publish a Guidance Notice during December 2023 setting out the principles of what should be in the fund rules to address the two-pot system.

We will keep you updated as new information becomes available.