Committee Welcomes Preparations for Implementation of Two-Pot Retirement System

The Portfolio Committee on Public Service and Administration received a briefing yesterday from the Government Employees Pension Fund (GEPF) on the fund’s state of readiness to implement the two-pot system to its almost 1.3 million public servant members when the new system comes into effect on 1 September 2024.

The committee welcomed the preparations that aim to ensure GEPF members have a user-friendly experience when using the online application system to access their pension fund information. This “app” will give members a dashboard view of their retirement pots and an opportunity to withdraw funds from the savings pot, as per the new rules of the two-pot retirement system.

The committee noted the concerns that some public servants do not understand how the new two-pot system works, but the committee is encouraged by the GEPF’s commitment to continue educating its members.

The committee also welcomes the legislation’s intention to protect South Africans’ retirement savings, as well as the fact that members will be able to access a component of their savings before retirement without having to resign from their job. This is intended to help them in times of unforeseen financial emergencies.

The committee calls upon members of the public service to highlight any frustrations with the implementation of the new system so that the committee can adequately fulfil its oversight responsibilities over the GEPF and its execution within the rules of the new two-pot retirement system.

Distributed by APO Group on behalf of Republic of South Africa: The Parliament.