House Chair,
The focal point of the Pension Laws Amendment Bill is the two-pot retirement system, the primary objective of which is to provide flexibility for fund members to access their retirement savings without necessitating the need for resignation.
Our retirement system primarily focuses on long-term savings, often lacking adaptability, and this has sadly resulted in many people facing a financial crisis having to resign in order to access their retirement savings, with drastic financial consequences in the long term. This pension reform seeks to strike that correct balance by permitting fund members to access a portion of their savings, which is very positive.
The ACDP has also looked at the amendments proposed by the NCOP which are largely technical in nature to improve the bill as a whole, and which we support.
The ACDP is concerned about the issue of our economy, given the fact many pension funds are supported by the Stock Exchange with National Treasury bonds, and that impacts on those investments in the long term as well, and, of course, on workers.
Lastly, the ACDP believes far more could be done to stimulate economic growth and stimulate more employment, which would not require workers to have to resign and this is why we believe it is time for change. It is time to vote for the ACDP!
We support the report.
I thank you.
