ASISA Academy is key in raising Two-Pot Retirement System awareness

The Two-Pot Retirement System, recently signed into law, introduces significant changes to how retirement fund members can access their savings. With the new system coming into effect on 1 September, it is crucial for members to understand the implications of withdrawing some of their retirement fund savings. To address this need, the ASISA Foundation has incorporated workshops on the Two-Pot Retirement System into their Retirement Fund Trustee Education (RFTE) programme, starting late last year.

Raising awareness

The ASISA Academy, the Foundation's implementing partner on the RFTE programme, began raising awareness about the Two-Pot Retirement System among their target market at the end of last year. “We always try to adopt a practical approach with our workshops – anecdotal examples blended with factual information. We consult with the various relevant pieces of legislation as well as ASISA senior policy advisors to ensure we are delivering one consistent and technically correct message,” explains Alicia Davids, CEO of the ASISA Academy.

“Educators also attended various conferences where pressing issues surrounding the Two-Pot Retirement System were discussed extensively. They incorporated this information into the workshop content,” adds Anel Bodill, ASISA Academy RFTE Programme Champion.

“Our overall goal is to assist retirement fund trustees in fulfilling their fiduciary responsibilities,” says Alicia. “The Two-Pot workshop helps them understand the legislation around the System and its practical application, enabling them to share the right information with their fund members. We also want to dispel any myths related to the Two-Pot Retirement System and to urge trustees – for instance – to reinforce the message to their retirement fund members that their savings pot should be treated as an emergency fund only, preserving their savings as much as possible for long-term benefits.”

Detailed and evolving workshop content

The Academy initiated the awareness campaign with a workshop titled “Recent developments within the retirement fund industry”, which included discussions on various legislative changes, including the Two-Pot Retirement System. As the legislative changes became formalised, this workshop evolved into a three-hour session dedicated exclusively to the Two-Pot Retirement System. These sessions are offered in online, face-to-face, and hybrid formats. So far this year, the Academy has delivered ten Two-Pot Retirement System workshops and plans to continue offering them until August.

“We have scheduled several workshops that can be attended by trustees from different funds, some specifically for trustees of a single fund upon request, and for members of Batseta, IRFA, and organised labour. Follow-up workshops are delivered on request,” Anel says.

Dispelling myths and continuous improvement

The workshops are facilitated by a team of trustee educators who are industry professionals such as lawyers, chartered accountants, chartered financial analysts, and investment professionals. These facilitators bring their extensive industry experience and first-hand involvement in retirement fund management to the workshops.

Cognisant of how quickly myths can spread, the ASISA entities are united in delivering clear messaging to all programme participants to dispel any misinformation or disinformation around the Two-Pot Retirement System. “Some of the myths we have encountered include assumptions like everyone will get R30 000 in their savings pot, that savings will disappear if not withdrawn, or that there will be no deductions from withdrawals,” says Alicia.

Trustee educator Tony Remas adds, “There’s also a misconception that monies in the retirement pot will be taken by the government because a fund member cannot access that component before retirement or death.”

To address these misconceptions, the workshop content is continuously updated. “Educators revise and update the learning material continuously to enhance the message and ensure it has the desired impact,” says Anel.

Making a real difference

“I think our workshops have helped trustees a great deal in being clearer on how the vested and savings pots of the Two-Pot Retirement System work, and especially in understanding the tax and fees’ implications upon withdrawal. Hopefully it has helped them to encourage their members to preserve as much of their retirement savings as possible,” Alicia says. ?

According to Anel, feedback from the evaluation forms indicates that trustees found the workshop highly useful in fulfilling their roles. “Many trustees particularly appreciated the explanation of the taxation of benefits, while most found the entire workshop to be beneficial.”

·????? If you want to be part of the success of the?RFTE programme, send an email to ASISA Foundation programme manager Namarsha Singh at [email protected].

·????? If you are interested in attending an RFTE Programme workshop or arranging training for your retirement fund board, contact the ASISA Academy at [email protected] or Atletha-edu at [email protected].

·????? If you are an employer having employees contributing to a retirement fund and interested in arranging training for your employees, contact WageWise programme manager Janete Nel at [email protected].

·????? To contribute, support or find out more about the ASISA Foundation’s programmes, click here or send an email to [email protected].

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