Many South Africans may not have adequate retirement savings when they retire and this has the effect of a low income replacement ratio on retirement that may lead to a decrease in the standard of living of the retiree and in extreme cases the retiree becoming dependent on their family and the government. Owing to this trend of no or inadequate retirement savings, South Africa embarked on a retirement reform journey in 2004. The goal of this research is to determine whether the retirement reform mechanisms outlined by National Treasury would encourage individual retirement savings that should assist South Africans to achieve stability of income in their retirement. This research analysed the current retirement savings options and vehicles available for South Africans, the current tax incentives and disincentives and reviewed the proposed changes to tax incentives and disincentives during the accumulation phase of retirement savings and explained how these proposed tax incentives are harmonised for the accumulation phase of retirement. The research explained how National Treasury aims to limit pre-retirement withdrawals and how it intends to encourage the annuitisation of post-retirement benefits. The penultimate chapter of this research measured the effect (by making certain assumptions) of the changes proposed by National Treasury on the income replacement ratio of the retiree. Throughout the research comparisons were made between The OECD Roadmap for the good design of defined contribution pension plans and National Treasury’s proposals. This research did not directly address the effect of increased life expectancies on retirement savings or increases in youth unemployment and the effect that this may have on retirement savings. The effect of financial charges levied on retirement savings on the income replacement ratio of a retiree was also not explored. Furthermore, not all pension funds are regulated by the Pension Funds Act and how these pension funds can be brought within the purview of the Pension Funds Act was not investigated. Automatic enrolment of retirement savings for all employees in South Africa in retirement vehicles is a further research area that could be addressed.

The purpose of this study was to review the provision of public and private retirement funding in both South Africa and the United Kingdom and the role of taxation in encouraging greater private provision for retirement. The study described the basis of taxation and determination of ‘taxable income’ in each jurisdiction, before addressing the relationship between taxation and retirement funding in each jurisdiction respectively. Both jurisdictions have introduced significant reforms of their systems of retirement funding and these reforms were accordingly addressed in the present research. The study compared the two jurisdictions based on the above mentioned areas to determine similarities or differences. The study concluded with recommendations, these being that South Africa should assess the feasibility of providing greater State provided retirement funding by possibly including a mandatory contribution, such as that used by the UK for its single-tier flat rate New State Pension. A further recommendation was that South Africa should encourage greater provision of private retirement funding by considering even greater tax deductions for contributions.

Thesis (MBA)--Stellenbosch University, 2012. / Asset restrictions are prudential regulations applied by regulators around the globe. In essence, they prescribe asset restrictions as a risk-control measure to establish appropriate capital requirements for regulated institutions. The aim of prudential regulations and standards is to protect consumers who acquire the products and services offered by these institutions. Pension funds in Namibia must comply with Regulation 28 of the Pension Funds Act, 1956. Regulation 28 is the prudential regulation that governs investment limits for pension funds. The regulation prescribes maximum investment limits for all asset classes. In 2009, the government made a policy decision to amend Regulation 28 to prescribe a minimum investment in unlisted shares (private equity) that would be applicable to pension funds, long-term insurance companies and unit trusts. The objective of government is to use Regulation 28 as a macroeconomic tool to control capital flows and channel capital to domestic companies. The regulation will stimulate economic activities, local ownership, create employment and reduce poverty, which will eventually facilitate economic development. In addition, this objective has the potential to assist the development of the private equity sector in Namibia. The implication of this development is that retirement savings will be utilised to achieve macroeconomic objectives and develop an industry sector. Private equity has shown tremendous growth in developed economies and is beginning to grow in Africa as well. Private equity is a sector that has the potential to realise excellent returns for pension funds, provided the risks are adequately controlled and managed. The study proposes a regulatory framework for unlisted investments (private equity) by pension funds. The framework considers risks and proposes how to best manage and control them. The conclusion is to abolish a prescribed minimum and to increase the domestic asset requirement. Ultimately, regulators exist to protect consumers while the development of markets is a secondary priority.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2012 / The amendment of section 30I (3) of the Pension Funds Act No.24 of 1956 by the provisions of section 30I of the Pension Funds Amendment Act No.11 of 2007 poses a serious threat to the constitutional right to social security (Section 27 (1) (c) of the Constitution). The amendment places this challenge on this right because it places some form of time-barring on the member of the fund or the complainant (his or her dependent) when lodging a pension funds complaint after a prescribed time has elapsed (three years) and the Adjudicator will no longer have no powers to condone such a late referral despite good cause shown and prospects of success on the part of the complainant. The said amendment has placed the poor more especially those in the rural areas in a disadvantageous position, because most of them are illiterate and not aware of their pension law rights. This means that even though they are entitled to the pension funds benefits, they cannot access it if they lodged their complaint outside the three-year period.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2013 / This study will analyse section 37D of the Pension Funds Act, 24 of 1956. The analysis will also give insight to pension benefits, and how they are afforded special protection by the legislature. Section 37A (1) prohibits the reduction, transfer, cession, pledge or hypothecation of pension benefits. In terms of the Act if a member becomes insolvent, pension benefits are deemed not to form part of the insolvent estate and are thereby protected from erosion by creditors. Section 37C of the Act deems pension benefits payable on the death of a member, subject to certain exceptions, not to form part of the assets of the estate of the deceased member. Section 19 of the Act also serves to protect pension benefits by restricting the manner in which a fund’s assets may be invested.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2013 / This mini dissertation relates to the payment of divorce benefits to a former spouse upon divorce and recent amendments that have taken place in the Pension Funds Act 24 of 1956.Particular reference is made to the amendment of Section 37D.This amendment has brought about changes that will contribute positively to the development of South African Retirement Law. The discussion below deals with the unfairness to non-member former spouses before 1st November 2008. An analysis of pension interest taking into account relevant statutory provisions and case law will be dealt with as well. A classification between a member spouse and a former spouse in order to determine who is responsible to pay tax upon divorce. In terms of the Divorce Act 70 of 1979 the former spouse of a retirement fund on divorce could be awarded by the court a portion of the benefits that the member would have received had she/he resigned on the date of divorce. The former spouse was only entitled to receive that share when the member became entitled to a benefit in terms of the rules of the fund which states on his/her retirement or termination of membership which could have been many years after the date of the divorce. Dissolution of Customary marriages will also be discussed and the benefit a divorced spouse has at the dissolution of marriage.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2013 / This mini-dissertation evaluates the laws regulating beneficiary funds in South Africa. A beneficiary fund is a fund established for the purposes of accepting lump sum death benefits awarded in terms of Section37C of the Pension Funds Act (the Act) to a beneficiary (dependant or nominee) on the death of a member, which are not paid directly to that beneficiary or to a trust nominated by the member, or to the member’s estate or to the guardian’s fund. This replaces the previous payments to trusts and a fund can now only pay to a trust if the trust was nominated by the member, a major dependant or nominee; a person recognised in law or appointed by a court as the person responsible for managing the affairs or meeting the daily care needs of a minor or incapacitated major dependant or nominee. Any association of persons or business carried on under a fund or arrangement established with the object of receiving, administering, investing and paying benefits, referred to in section 37C on behalf of beneficiaries, payable on the death of more than one member of one or more pension funds is a beneficiary fund and must be registered by the Financial Services Board and approved. Beneficiary funds were introduced as a result of the amendments to the Pension Funds Act into the Financial Services Laws General Amendment Act, 22 of 2008. The beneficiary funds were introduced with stronger regulatory framework. They have sufficient governance, reporting requirements and conduct annual audits.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2013 / This mini-dissertation evaluates the laws regulating beneficiary funds in South Africa. A beneficiary fund is a fund established for the purposes of accepting lump sum death benefits awarded in terms of Section37C of the Pension Funds Act (the Act) to a beneficiary (dependant or nominee) on the death of a member, which are not paid directly to that beneficiary or to a trust nominated by the member, or to the member’s estate or to the guardian’s fund. This replaces the previous payments to trusts and a fund can now only pay to a trust if the trust was nominated by the member, a major dependant or nominee; a person recognised in law or appointed by a court as the person responsible for managing the affairs or meeting the daily care needs of a minor or incapacitated major dependant or nominee. Any association of persons or business carried on under a fund or arrangement established with the object of receiving, administering, investing and paying benefits, referred to in section 37C on behalf of beneficiaries, payable on the death of more than one member of one or more pension funds is a beneficiary fund and must be registered by the Financial Services Board and approved. Beneficiary funds were introduced as a result of the amendments to the Pension Funds Act into the Financial Services Laws General Amendment Act, 22 of 2008. The beneficiary funds were introduced with stronger regulatory framework. They have sufficient governance, reporting requirements and conduct annual audits.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2013 / The South African government has paid compensation in a form of special pension to individuals who have been exposed to certain types of hardship and suffering caused by the governments or their predecessors. This compensation is described as ‘the appreciation or sense of guilty of society towards those people on whom the government has rightfully or wrongfully and at any rate disproportionally inflicted damage’. Government have been prepared to pay compensation to the following persons: former enemies, victims of war, victims of harmful compulsory vaccination measures, persons who had sacrificed their jobs and education in the process of overturning oppressive governments establishing democratic government; and persons whose basic human rights had been violated by governments or their predecessors. These persons have sacrificed their lives either in exile or within South Africa fighting for South Africa to be democratic. These persons must prove that they served their respective political organisations for a period of five years or above or they were banished or restricted in certain area or imprisoned or sentenced.

Thesis (LLM. (Labour Law)) -- University of Limpopo, 2015 / Section 37C of the Pension Funds Act was introduced primarily to ensure that death benefits are paid in accordance with the object of the Act and government policy. Its purpose is to make sure that the dependants of the deceased member are not left destitute upon the death of the member. In order to achieve this, the death benefits are placed under the control of the trustees who are tasked with the duty to distribute the benefits equitably among the beneficiaries. According to this section, death benefits do not form part of the deceased’s estate and as a result a beneficiary under the last will and testament of the deceased is not necessarily a beneficiary under section 37C of the Act. The board of trustees will consider a person as a beneficiary if the deceased member has nominated such a person in a valid nomination form. This section therefore overrides the deceased’s freedom of testation because the board of trustees are not bound by the deceased’s wishes as completed in the nomination form. A nomination form is one of the factors which the trustees have to consider in the exercise of their discretion to make an equitable distribution.