PENSION LAW

In South Africa, pension law is governed by various pieces of legislation, including the Pension Funds Act, the Income Tax Act, and the Labour Relations Act.

The Pension Funds Act regulates the establishment, registration, and management of pension funds in South Africa. It also sets out the duties and responsibilities of pension fund trustees, as well as the rules for the investment of pension fund assets.

Under the Income Tax Act, contributions to pension funds are tax-deductible up to a certain limit. The Act also sets out the tax treatment of pension fund benefits, including the tax-free lump sum that can be taken upon retirement.

The Labour Relations Act provides for the protection of employees’ pension rights, including the right to join a pension fund and the right to have their pension benefits properly managed and administered.

In addition to these laws, there are also various industry codes and regulations that apply to pension funds, such as the Financial Sector Conduct Authority’s Pension Funds Code of Conduct and the Association for Savings and Investment South Africa’s Retirement Savings Default Regulations.

Overall, the aim of pension law in South Africa is to ensure that employees are provided with adequate retirement benefits and that their pension funds are properly managed and administered.