ANNUITISATION CHANGES – 1 MARCH 2021
ISASA PROVIDENT FUND MEMBERS VESTED RIGHTS ARE PROTECTED WHEN ANNUITISATION CHANGES ARE IMPLEMENTED ON 1 MARCH 2021
WHAT IS CHANGING?
From 1 March 2021 provident funds must work like pension funds, i.e. at retirement only one- third can be taken as a cash lump sum and two-thirds must be used to buy a pension for life. To protect members’ vested rights all members from 1 March 2021 will have two “pots” of money in a Fund. A vested “pot” and a non-vested “pot”.