New amendments will allow loans from pensions :: Mmegi Online

The Retirement Funds Act is being amended to allow pension fund members to get direct loans from their pension funds or to use part of the pension as security for mortgage loans, Finance Minister, Peggy Serame has said.

The provision will be for pension fund members who have not yet started drawing a monthly payout from their funds, she said in Parliament on Thursday.

Serame was responding to a question by Selebi Phikwe West legislator, Dithapelo Keorapetse who wanted to know how government is assisting homeowners avoid foreclosure, given the difficult economic environment caused by COVID-19. Keorapetse wanted to know the extent of mortgage foreclosure, whether banks were still helping with mortgage deferral plans introduced last year and whether government had a plan to provide homeowners with protection through mortgage assistance relief services.

Already have an active account? Log in here.

Or Sign up and get unlimited access to premium articles.