Number of members of all retirement funds in south africa membership by fund category of all retirement funds in south africa. Assets of pension funds in south africa 2018 statista. This statistic presents the total assets of pension funds in south africa from 2002 to 2018. Act 94 of 1969 was also amended in south africa by the legal succession to the south african. The pbgc is a pension insurance fund and charges employers a premium to guarantee. Pension funds act 24 of 1956 sa sa gg 5679 brought into force in south africa and south west africa on 1 january 1958 by sa proc. Pension funds act 24 of 1956 sa legal assistance centre.
South africa is looking to bolster its finances by making prescribed assets a vehicle to fund governmentapproved institutions. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. Employerbased retirement plans have a long history in south africa. Beneficiary fund pension provident established to receive, administer, invest and pay benefits that become due to beneficiaries, payable on the death of a member. The pension funds act the act requires that the employer pays the employer and the member contributions, as stipulated in the fund rules, to the fund. The changes to the pension funds act will be implemented from 1 march 2019. Pension funds act 24 of 1956 south african government. Section 37c distribution of retirement fund lump sum death benefits. Gepf is a defined benefit pension fund that was established in may 1996 when various public sector funds were consolidated. In this act, unless the context otherwise indicates. We work closely with social workers, child welfare, counseling and other. Application of section a of the act payment of contributions and certain benefits to pension funds according to section a, an employer of any member of a fund must make its monthly contribution payments no later than the 7th day of each month after the end of the month for which such a contribution is payable. Big problems with south africas coronavirus phone tracking system. Our core business, which is governed by the government employees pension law or gep law, as amended, is to manage and administer pensions and other benefits for government employees in south africa.
Sections, 19 and 28 amended by pension funds amendment act 94 of. Section 37c of the pension funds act 24 of 1956 the act governs the distribution and payment of lump sum benefits payable on the death of a member of a pension fund, provident fund. The regulations resonate with regulation 28 of the pension funds act. Among those, the coverage rate is quite high by international comparison and is estimated to. Republic of south africa, 1993 act 200 of 1993, except where the legislation. The difference between a pension fund and a provident fund. The pension funds amendment act 11 of 2007 intends. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. Labour guide south africa offers a wealth of labour law information and documentation to attorneys, companies and individuals. Pension funds amendment act 11 of 2007 south african. Pension funds amendment act, 2001 pdf version act no. Consider and make appointments in terms of section 262 of the act where it is found that a fund no longer has a valid board of management research and. Retirement funds in south africa comprise pension funds, provident funds, retirement annuity funds, preservation funds, unclaimed benefits funds and. But pension and provident funds exist for the benefit of their members, who are workers and.
Entitlement to pension interest on divorce a reply. Unclaimed benefit pensionprovident established for the receipt of unclaimed benefits. To provide for the registration, incorporation, regulation and dissolution of pension funds and for matters incidental thereto. Pension funds second act, 2001 to amend the pension funds act, 1956, so as to make new provision for the apportionment of actuarial surpluses and for minimum benefits. Section 1 defines union to include the territory, which is defined as the territory of south west africa. Pension funds act 24 of 1956 namibia legal database. Our goal is to protect your legal interests when dealing with a divorce, antenuptial and postnuptial agreements and child maintenance. Requirements imposed by the financial services board for nominees to operate in south africa bn 106 in gg 29274 of 5 october 2006. The retirement funding system has been in place since 1956 when the pension funds act was passed. The paper was designed as an overviewbackground document to provide context and assist. Pension funds that are investing in impact investing are mainly from the developed world and very little is happening in terms of investments from african pension funds. Maintenance act 99 of 1998 pension funds second amendment act 39 of 2001. Unclaimed benefit pension provident established for the receipt of unclaimed benefits. There are some pension funds in south africa that are not subject to the pfa, because they have been established by statues other than the pfa, and because their liabilities either have been or are now underwritten by the state.
Experts say south africa has the highest amount of pension assets in emerging markets over china, russia and brazil. Effect of registration of pension fund referred to in section 4a r an sfe top ei fu drr sectio 4a it ss h l by. The largest of these is the gepf, which is also the largest overall fund in south africa by asset value. There is a consensus among african policymakers that the continents economic growth and transformation. The giant african pension fund is south africas government employees pension fund gepf, which had an investment portfolio of zar1. Pension system in south africa pension funds online. South africas pension fund regulation world economic forum. The contributions must be paid into the bank account of the fund or transmitted directly to the fund by no later than 7 days after the end of the month, for which the contribution is payable. Private plans are subject to the employee retirement income security act of.
With acts you are guaranteed the latest and most up to date resource for your legislative needs. The revisions to regulation 28, which aimed to update pension fund investment practices in light of changing investment patterns and political and economic contexts in south africa, was an opportunity for the south african government to link the regulatory reform of pension fund investment with the governments broader goals of encouraging. Section 37c distribution of retirement fund lump sum. The government are targeting pensions and retirement funds. Legal succession to the south african transport services act, no. The international organisation of pension supervisors iops has guidelines on the supervisory assessment of pension funds iops 2008a which state one of the objectives of the regular monitoring of pension funds as. Labour guide your guide to labour law in south africa. But occupational retirement plans are limited to those employed in the formal sector. In many places pension funds are riding on dfis and other fund managers to make investments especially in the developing countries including africa. Pension funds act 24 of 1956 sa parliament of namibia.
New regulations are to your benefit but tough on pension funds. Pensions in africa this paper discusses why the development of pension systems is important for the african region. Those employed in south africas public sector are entitled to membership of gepf, which is africas largest pension fund with more than 1. Beneficiary fund pensionprovident established to receive, administer, invest and pay benefits that become due to beneficiaries, payable on the death of a member. As a reflection of south africans conscious choice to prepare for retirement and put their hardearned salaries to good use, this mountain of a collective fund is something to be proud of. Gepf offers its members a range of benefits including a pension upon retirement at the age of 60 or earlier if due to ill health, resignation benefits. It also looks at the current pension arrangements in selected african countries. Prescribed asset requirements and what it could mean for. Republic of south africa republiekvan suid afrika vol. Due to womens low earning capacity and the prejudice they experienced before the 1989 amendments to the divorce act when they divorced, the south african law commission recommended the sharing by the non. This office supervises the telkom retirement fund through the pension funds act. Your guide to labour law in south africa labour guide. New pension fund regulations will ensure better retirement decisions.
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