Pensions and retirement plans—South Africa—Q&A guide
Pensions and retirement plans—South Africa—Q&A guide

The following Pensions practice note provides comprehensive and up to date legal information covering:

  • Pensions and retirement plans—South Africa—Q&A guide
  • 1. What are the main statutes and regulations relating to pensions and retirement plans?
  • 2. What are the primary regulatory authorities and how do they enforce the governing laws?
  • 3. What is the framework for taxation of pensions?
  • 4. What is the state pension system?
  • 5. How is the state pension calculated and what factors may cause the pension to be enhanced or reduced?
  • 6. Is the state pension designed to provide a certain level of replacement income to workers who have worked continuously until retirement age?
  • 7. Is the state pension system under pressure to reduce benefits or otherwise change its current structure in any way on account of current fiscal realities?
  • 8. What are the main types of private pensions and retirement plans that are provided to a broad base of employees?
  • 9. Are employers required to arrange or contribute to supplementary pension schemes for employees? What restrictions or prohibitions limit an employer’s ability to exclude certain employees from participation in broad-based retirement plans?
  • More...

Pensions and retirement plans—South Africa—Q&A guide

This Practice Note contains a jurisdiction-specific Q&A guide to pensions and retirement plans in South Africa published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2020).

Authors: Fasken—Rosemary Thérèse Hunter; Nicholas Ndlovu

1. What are the main statutes and regulations relating to pensions and retirement plans?

Almost all retirement fund plans are subject to regulation and supervision under the Pension Funds Act 1956 (PFA).

Some of those that are not subject to the PFA are state-guaranteed funds established under other specific statutes, including the Government Employees Pension Fund and the three funds established in terms of the Transnet Pension Funds Act. 

Other statutes of particular importance include the following:

  1. the Basic Conditions of Employment Act 1997;

  2. the Divorce Act 1979;

  3. the Financial Advisory and Intermediary Services Act 2002;

  4. the Financial Institutions (Protection of Funds) Act 2001;

  5. the Financial Sector Regulation Act 2017 (the FSR Act);

  6. the Financial Services Board Act 1990;

  7. the Income Tax Act 1962;

  8. the Inspection of Financial Institutions Act 1998;

  9. the Labour Relations Act 1995;

  10. the Maintenance Act 1998;

  11. the National Credit Act 2005;

  12. the Promotion of Equality and Prevention of Unfair Discrimination Act 2000; and

  13. the Social Assistance Act 2004.

Up-to-date copies of this legislation may be found on the website of the University of Pretoria at www.lawsofsouthafrica.up.ac.za/index.php/current-legislation.

2. What are the primary regulatory

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