South Africans are encouraged to comment on the explanatory memorandum of the Democratic Alliance’s (DA) proposed Private Member’s Bill (PMB) to amend the Pension Funds Act.
The memorandum was gazetted on Friday and sets out the objectives of the Bill. It essentially aims to amend the Pension Funds Act, 1956, to enable pension fund members to access a percentage of their pension fund before retirement as guarantee for a loan.
The Bill aims to alleviate financial pressure during an emergency such as the Coronavirus pandemic or any other emergency similar to Covid-19.
The unfortunate outbreak of the Covid-19 pandemic in South Africa has dealt a crippling blow to our country’s economy and has left many South African families in financial ruin. A lifeline such as this would save many families.
By enabling a member to access a pension-backed loan, that member will be able to leverage their pension fund investment before their retirement date, without eroding their provision for eventual retirement. Lending institutions will be enabled to offer loans to pension fund members at competitive interest rates and over extended or deferred payment periods, given that the loan is fully guaranteed.
The Bill is now open for public comment and input. Written submissions can be made to:
- The Speaker, New Assembly Building, Parliament Street, Cape Town;
- The Speaker, PO Box 15, Cape Town 8000; or
- emailed to speaker@parliament.gov.za and copied to lurwinj@da.org.za.