PROVIDENT FUND ANNUITISATION (PENSION AT RETIREMENT) POSTPONED FOR 2 YEARS!
The Minister of Finance announced yesterday that Government is flexible on the implementation of annuitisation for provident funds, and has postponed the implementation for two years, from 1 March 2016 to 1 March 2018.
Tax deductibility for retirement funds will however be implemented from 1 March 2016 – this means that employer contributions to retirement funds will become a fringe benefit in the hands of employees for tax purposes. Members of all funds will be able to receive a tax deduction on employer and employee contributions up to 27.5% of the greater of remuneration or taxable income. A maximum of R350 000 per year will apply to all funds combined.
Remember, if you retire or resign you may still take your entire benefit in cash. Look out for the member newsletter, Siyaphambili, for more information.