RisCura’s head of investment advisory and administration, Petri Greeff, discusses why the new amendments to the Pension Fund Act – default regulations – that came into effect on 1 March 2019 are important for the retirement fund industry.
On 1 March 2019, the South African retirement industry takes one step closer to helping fund members enjoy a seamless retirement journey. Following the introduction of the amendments to the Pension Funds Act in September 2017, the deadline to comply with the Act’s default regulations are now effective.
To recap, the regulations require that retirement funds establish a default option for members retirement savings, one for preserving their funds if they change employers before they retire, and lastly a default that requires members to opt in to a living annuity once they retire. The regulations seek to improve retirement outcomes for members by ensuring that they receive good value from their savings and can retire comfortably.