Nathalie Burrows, Editor EBnet

Day 1 of this year’s PLA conference delivered an agenda full of current content delivered with very practical guidance and user friendly solutions, which dare I say is somewhat unusual for lawyers.

The most notable of the presentations were:

All things two-pot

In this session Leanne van Wyk (ICTS Legal Services) and Nicolette van Vuuren (Webber Wentzel) provided a summary of where the industry is right now, what the legislation requires, what we are still unsure about and the difficulties and challenges we still face.

The speakers shed light on:

• The practical implications for members who were 55 or older on 1 March 2021,
• How various section 14 transfer scenarios will impact how members go about claiming their savings pots from 1 September 2024,
• The deadline dates for the submission of rule amendments.

Whilst we have had much clarity over the past few months, there are some issues which need some more thought and deliberation. Notably, clarity on the need for amendments to special rules, the application of two-pot to closing funds and the application on emigration.

Interpretation rulings

Jonathan Mort (Jonathan Mort Inc) and Adv. Luyanda Mbatha led a Socratic debate on the binding effects of interpretation rulings, in the context of the recent about turn taken by the FSCA on the applicability of Section 37C to unclaimed benefits (Interpretation ruling 1 of 2024). A lively audience discussion led fund trustees being challenged to raise their objections to the FSCA where they consider future interpretation rulings to be incorrect.

The World Bank: the impact of early access to retirement savings across different jurisdictions

Many readers may not be aware that South Africa’s impending two-pot system is not the first of its kind to offer early access to pension benefits. Himashi Jain (World Bank) and Rowan Burger (Momentum Metropolitan) considered models applied around the world to assist individuals with the dual objectives of having cash now to meet emergencies, versus having cash later to afford retirement.

This thought provoking session investigated the ways in which different countries have implemented the early access to retirement savings and the reasons why fund members may wish to take money out of their retirement funds before they reach retirement. Delegates were challenged to consider their communication efforts to retirement fund members to ensure that critical key messages are understood. And a straw poll done of all the attendees, revealed that the majority do not believe members understand the two-pot system and its consequences.

These were some of my personal highlights of the first day. But kudos must be given on all the agenda topics chosen and the expert delivery of every presenter. From thought provoking recent cases, to legislative developments, to the changing landscape of our industry, EBnet will continue to unpack many of these topics over the coming weeks.

ENDS