Cape Peninsula University of Technology Retirement Fund NEWSFLASH - THE 2 POTS EDITION Dear Members By now you will all be aware of the ever topical “Two Pots” system. Our latest communication was via the June 2024 Newsletter. With the implementation date of 1 September 2024 fast approaching, it's crucial for everyone to understand how the Two Pots will reshape retirement planning in South Africa in general, and how it impacts you as a member specifically. We've recently started virtual presentations. Please also browse the Two Pots link on AF Connect where you can register to attend an upcoming webinar or watch the recordings of previous webinars.
How the “two pots” system applies to members of provident funds who were present prior to 1 March 2021? Members who were 55 years or older on 1 March 2021 and who are still members of the same provident fund?
Members who were under the age 55 on the 1 March 2021
These members will have the option to participate in the two-pot system. If these members don’t choose to participate in the new system, then everything remains the same as is at the moment. These members will be given 12 months from 1 September 2024 to choose to opt in to the two-pot system – this is a once-off option. These members will participate in the new “Two pots system”. However, the monies accrued up until 1 March 2021 will be kept in a separate sub-account – as is at the moment, and will continue to grow with investment returns. The rules existing at that time (1 March 2021) will apply when you take a retirement benefit.
How the “two pots” system applies to members who joined after 1 March 2021? They participate in the new “Two-pots” system.
How the “two pots” system applies to deferred members and deferred pensioners (including those members who were 55 and older on 1 March 2021 They participate in the new “Two-pots” system. Members over aged 55 on 1 March 2021, who are deferred members, will have the option to participate in the two-pot system. They will be given 12 months from 1 September 2024 to choose to opt in the two-pot system.
Before we dive into the specifics, let’s begin with a summary of why the “Two Pots” system came about and how it impacts you
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