Treasury discussing withdrawals from retirement funds with NEDLAC

At today’s media briefing, the National Treasury said that it is in discussions with the National Economic Development and Labour CouncilĀ (NEDLAC) on a proposal for limited withdrawals from retirement funds, for those losing part of their income during the Covid-19 pandemic.

“On the accessing of pension funds I want to emphasise that we are working on it – but there are a lot of complexities if we want to ensure the preservation of savings, and there could be a rush to the door that could create liquidity problems, ” Treasury’s deputy director-general, Ismail Momoniat said.

“Government is continuing to engage with trade unions, regulators and other stakeholders to discuss how to allow limited withdrawals linked to tightening preservation by closing current loopholes, and also to expand coverage so that all those employed or earning an income are required to put aside a small proportion for saving for their future,” Momoniat added.

Visit the official COVID-19 government website to stay informed: sacoronavirus.co.za