-
Two gold pots with gold coins in them illustrating the two-pot retirement system.
The Financial Sector Conduct Authority (FSCA) says it expects the cost of implementing the two-pot retirement system to increase by R300 million annually.
The FSCA has put the cost since the implementation of the system on September 1 at R1.6 billion.
The financial regulator says this includes additional staff to deal with queries, communication as well as new call centres.
FSCA Deputy Commissioner Astrid Ludin presented the financial regulator’s report to Parliament’s Standing Committee on Finance yesterday.
Ludin says, “So the cost based on the feedback we’ve received from the administrators of implementing the two-component system has been R1.6 billion. Most of that has come from systems changes and all the large administrators had significant spend on their system changes. You can also see additional cost for example around the member communication, there was a lot of communication and education that came out.”
VIDEO | FSCA on implementation of two-pot system:
