Implats’ killer shaft
FOR THE RECORD In our story headlined “Do a Van Rooyen” (January 24 2016), we reported that the new retirement taxation laws “put a cap on how much of an employee’s provident fund or pension may be withdrawn when a person leaves a job. It is intended to force workers to save for their retirement and not withdraw savings to pay off debts or fulfil short-term needs.”
This law already applies to all pension fund and retirement annuity fund members, and will now be extended to members of provident funds. The law also allows one-third of the retirement saving to be cashed out as a lump sum, with the remaining two-thirds to be annuitised.
Members will still be able to cash in their funds, but will be liable for greater tax deductions. This is intended to encourage members to save for retirement.