An urgent tax amendment bill was tabled in parliament to postpone the annuitisation requirement for provident funds for two years, until 1 March 2018.
Cabinet has noted the concerns that have been raised in respect of the retirement reforms relating to the requirement to purchase an annuity at retirement (i.e. to receive a regular monthly income during retirement instead of a lump sum) for provident fund members.
Government is proposing the two-year postponement to allow for further consultation with key stakeholders.
It should be noted that the postponement only applies to the annuitisation implementation date and related provisions. The implementation date for all other amendments did not change and went ahead as scheduled on 1 March 2016.
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