BPOPF warms up to emergency pension fund withdrawals

At present, pension fund members can only receive their benefits when they reach retirement age and begin drawing the monthly payouts. However, with the squeeze on disposable incomes, including loss of properties and mounting medical bills, legislators have been pressing for the upcoming changes in the retirement act to allow terms under which members could tap into their retirement savings for emergencies.

The Finance and Economic Development ministry is finalising amendments to the Retirement Funds Act to allow pension fund members who have not yet started earning a monthly annuity to get loans from their funds under specific conditions or to use part of the accrued pension as security.