The Building Industry Bargaining Council (BIBC) has announced that it will move to a fully digital system
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The Building Industry Bargaining Council (BIBC) has announced that it will move to a fully digital system for processing withdrawals under the Two-Pot retirement framework, as demand for early access to savings continues to surge.
The BIBC is a collective body representing employers and trade unions in the building sector, responsible for overseeing labour agreements and administering benefits such as pensions across the industry.
The two-pot system is a retirement savings structure that allows members to access a portion of their savings without cashing out their entire pension.
Since its rollout in 2024, uptake has been significant, with millions of withdrawal applications processed and tens of billions of rand paid out.
Danie Hattingh, Principal Officer of the Building Industry Pension Scheme, said the shift to a fully digital process would help speed up withdrawals, improve accuracy and reduce the risk of fraud.
“Digital access is not just about convenience; it is about strengthening the integrity of the system. When member information is accurate and systems are aligned, withdrawals are faster, more secure, and traceable. But it also places responsibility on all stakeholders to ensure their information is correct and up to date.” Hattingh said.
The organisation also revealed that paper-based applications and in-person submissions will no longer be accepted, with all withdrawal requests now required to be processed through its online platform.
"To address these challenges, the Building Industry Bargaining Council (BIBC) has moved to a fully digital process for Two-Pot savings withdrawals. Paper forms and in-person submissions will no longer be accepted from members of the Building Industry Pension Scheme. Instead, applications will be submitted and verified through secure online platforms, with tax checks and payment processing handled electronically".
"This approach aims to reduce delays, improve accuracy, prevent fraud, and ensure that funds reach members efficiently. By automating verification steps and logging every action, the BIBC can now monitor applications more effectively and address potential issues before they escalate".
However, he stressed that successful withdrawals will depend on members ensuring their details are correct and up to date, including:
Hattingh also warned that the system is intended to provide only limited short-term relief and should not be used in a way that undermines long-term retirement security.
“The system is designed to provide limited relief without undermining retirement security. Members need to use withdrawals thoughtfully, understanding both the benefits and the long-term implications.”
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