Cosatu hails proposed two-pot retirement system
The Congress of South African Trade Unions (Cosatu) believes the government's proposed two-pot retirement system will provide relief to many struggling workers.
National Treasury has published the proposed legislation for public comment, with the amendments set to take effect in March next year.
According to the draft legislation, the new retirement system will allow workers to access a maximum of 10% of their retirement funds in the event of an emergency.
The amount will be taxed according to your income and tax marginal rate.
The savings pot is designed to support people in an emergency situation, just like the Covid-19 pandemic.
Cosatu's Matthew Parks says they want the government to increase the proposed withdrawal threshold of R25 000 to at least R50 000
"They will provide relief to millions of struggling workers in both public and private sectors. They provide workers with a better alternative when they are drowning in debt or confronted with a financial emergency.
"This will help workers to pay bills and debt without having to resign from their jobs and lose their salaries. This will incentive workers to save more knowing when they are in need they have access to the savings pot once a year."
You can forward written comments to the National Treasury’s depository at [email protected] and SARS at [email protected] by close of business on 15 July 2023.
