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What is effective




Effective date 1 March 2016

The following changes will come into effect on 1 March 2016 (T-day)


  • All member/employee contributions to retirement funds will be tax deductible subject to new revised limits of 27.5% of remuneration or taxable income, capped at R350 000 per annum.

  • Employer contributions to retirement funds will be treated as fringe benefits but employers will be able to give employees a corresponding deduction up to the new revised deductible limits.

  • Employers will be able to claim unlimited deductions on their retirement fund contributions.


  • The minimum Rand threshold at which you can take your retirement benefit as a full cash lump at retirement will be increased from R75 000 to R247 500.

  • Members of all retirement funds with retirement benefits below R247 500 will not be required to purchase an annuity at retirement.

Effective date 1 March 2018

Subject to an agreement still to be reached between Government and various stakeholders, the following changes will come into effect on 1 March 2018.

Fund alignment

  • Retirement benefits provident funds will be aligned with pension and retirement annuity funds.

  • Provident fund benefits up to 1 March 2018, plus growth, will be capable of being taken out as a cash lump sum at retirement. These will be regarded as "vested benefits".

  • Contributions and growth after 1 March 2018 will have to be annuitised at retirement i.e. provident fund members will only be allowed to access 1/3 of these 'non-vested' benefits as a lump sum and the remaining 2/3 to buy an annuity.

  • Members of provident funds who are 55 on 1 March 2018 will not be required to annuitise any of their retirement benefits.


  • Tax-free transfers will now be possible between different types of retirement funds which previously did not allow such transfers.

  • Tax-free transfers from retirement annuities however will only be possible to other retirement annuities.

For further information from National Treasury on these changes please click here



Liberty Group Limited (Reg. no 1957/002788/06) is a licensed Insurer and an Authorised Financial Services Provider (no 2409).