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Old Mutual announced on Monday that it welcomed the National Treasury’s announcement that it would move the implementation date for the Two-Pot Retirement System to 1 September 2024, which is in the best interest of all stakeholders.

Initially, in 2022, the government had communicated the implementation date as 1 March 2024. However, in the lead-up to this year’s Medium-Term Budget Policy Statement in October, the National Treasury signalled a postponement of the implementation date to March 2025. On 21 November, it announced it would reinstate 1 March 2024 as the implementation date.

Michelle Acton, Retirement Reform Executive at Old Mutual, commended the latest positive development. “This new timeline offers a balanced window for all involved parties to prepare adequately. We appreciate the government’s attentiveness to the industry’s feedback and commitment to ensuring a seamless transition for the Two-Pot Retirement System.”

Acton emphasised that the decision allowed Old Mutual, alongside essential partners like the SA Revenue Service (SARS), sufficient time to complete necessary system builds and procedural updates.

She said this was particularly crucial for facilitating early withdrawal claims under the new system, a process dependent on finalising and gazetting the Draft Revenue Laws Amendment Bill and the Pension Funds Amendment Bill. Acton underlined that from the time the laws were gazetted, retirement funds would need at least six months to finalise building the new system and structures required to facilitate withdrawals for members.

Acton further highlighted the importance of collaborative efforts in this period. “This extended timeframe is a testament to our collective dedication to delivering a well-prepared and efficient system. It ensures we can provide the best service to South Africans who rely on these funds. Old Mutual remains steadfast in our commitment to implementing the Two-Pot Retirement System effectively and responsibly,” she concluded.

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