The Eskom Pension and Provident Fund (“EPPF” or “the Fund”) is aware of media reports published where the Finance Minister,
Tito Mboweni, made reference to discussions around a “proposal for limited withdrawals from retirement funds for those who lost part of their income during the COVID-19 pandemic”.
The media reports referred to above are based on several engagements with stakeholders by government around proposals to change the laws governing withdrawal from pension funds by active members due to the difficulties brought about by the pandemic. These proposals have been motivated by, among others, to assist those employees that have been adversely affected from a financial perspective by COVID-19 lockdowns that have impacted their employers.
It is not yet clear what the final changes are going to be, as government has not yet finalised them. For these changes to be effective, amendments to laws governing pension funds (such as Pension Funds Act, Income Tax Act etc.) and subsequently, the rules of pension funds would have to be made. The Fund is watching the developments on this matter closely and once concrete directives have been issued, we will consider.
Currently, as an EPPF active member, it is not possible for you to withdraw from your accumulated retirement savings while still working. Retirement savings can only be accessed either at retirement, resignation, or death. This access to funds is in line with current laws governing pension funds and the EPPF Fund Rules, in efforts to guide you in preserving your retirement savings.
We hope this notice provides clarity on the matter and we will continue to update you as new information becomes available.
Eskom Pension and Provident Fund