Two-pot withdrawals flood in

Financial Sector Conduct Authority preparing list of defaulting enterprises.

- Ina Opperman

The two-pot retirement system has now been in effect for two weeks and pension fund administrators are inundated with claims from fund members who want to withdraw money from their saving pots.

According to the Financial Sector Conduct Authority (FSCA), it approved 794 rule amendments from pension funds by 11 September, while 62 rule amendments must still be processed.

This includes rule amendments where the FSCA is waiting for funds to respond to queries.

Only three funds have not yet submitted their rule amendments.

The FSCA said retirement funds with electronic means of registering claims have been quicker to process them.

Another trend was that members with tax issues submitted claims that cannot be processed until the tax issues have been resolved.

There are also thousands of pension fund members who will not be able to access their saving pots because their employers did not pay over their pension fund contributions.