What is regulation 28 in South Africa?
The definition of infrastructure has been revised in the second draft of Regulation 28. The new revised definition is that infrastructure is “any asset class that entails physical assets constructed for the provision of social and economic utilities or benefit for the public”.
Who does regulation 28 apply to?
Regulation 28 applies to pension, provident and retirement annuity funds, and essentially limits asset managers’ allocations of retirements savings to certain assets classes, including equities, property, and foreign assets.
What is the pension funds Act?
The Pension Funds Act 24 of 1956 aims: to provide for the registration, incorporation, regulation and dissolution of pension funds and for matters incidental thereto.
Can I withdraw my full pension fund?
You can take up to 25% as a lump sum without paying tax, and will be charged at your usual rate for any subsequent withdrawals. You can reinvest your pension fund so it can provide you with income as you require it.
What are the reg 28 limits?
What are the Regulation 28 limits? Broadly speaking, it means you can invest: • a maximum of 75% of your retirement savings in shares; • a maximum of 25% in property; • 30% in international assets excluding Africa; and • 40% in international assets including Africa.
What is regulation 28 investment?
Regulation 28 is issued under the Pension Fund Act. It limits the extent to which retirement funds may invest in particular assets or in particular asset classes. The main purpose is to protect the members’ retirement provision from the effects of poorly diversified investment portfolios.
When did Regulation 28 start?
In February 2011, the then-finance minister Pravin Gordhan, announced changes to Regulation 28 to apply at member level. Since April 2011, all new retirement investments must adhere to Regulation 28 per individual member of any retirement fund.
What is Regulation 37 of the Pension Funds Act?
Regulation 37 states that a fund with a defined contribution category must require the board to include at least one default investment portfolio in their investment policy statement. Members will be invested in this portfolio unless they elect an alternative.
What are the rules for pension?
The minimum eligibility period for receipt of pension is 10 years. A Central Government servant retiring in accordance with the Pension Rules is entitled to receive pension on completion of at least 10 years of qualifying service.
Can I withdraw pension early?
Early pension release, or pension unlocking, means withdrawing money from your pension before the minimum age of 55 (57 from 2028). Unless you meet specific conditions, you’ll be charged a substantial amount of tax and could risk losing all of your savings to scammers.
How are pension funds regulated?
Private industry pension plans primarily are regulated by the Employee Retirement Income Security Act of 1974 (ERISA), which sets forth minimum standards for retirement plans in the private sector, as seen in the next section.