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Budget Speech 2021

13. Retirement Fund Reform


We announced in the MTBPS the historic agreement with all NEDLAC constituencies for the annuitisation of provident funds. This will enable all workers to continue to enjoy tax deductions on their contributions.


The NEDLAC constituencies also agreed to accelerate the introduction of auto‐enrolment for all employed workers, and the establishment of a fund to cater for workers currently excluded from pension coverage, as an urgent intervention towards a comprehensive social security system.


I can announce that annuitisation for provident funds takes effect from 1 March 2021, and provident fund members will continue to enjoy a tax deduction on their contributions. In addition, the National Treasury will this week publish draft amendments to Regulation 28 for public comment.


The proposed amendments to Regulation 28 seek to make it easier for retirement funds to increase investment in infrastructure.