Cosatu pension battle rages on
Postponement of decision to alter provident fund rules generates anger as talks drag on without agreement
Cosatu says it will keep fighting any amendments to the provident fund rules until the government has a sustainable social security plan in place. The labour federation was reacting to the Treasury’s proposal that the implementation of the contentious changes to provident funds be postponed by another year until 2019. The changes are contained in the new draft Taxation Laws Amendment Bill published for public comment. The amendments, first proposed in 2015, seek to transform provident funds into schemes such as pensions and retirement annuity funds. To do this, the Treasury wanted provident fund members, upon retirement, to be entitled to withdraw only a third of their benefits as a lump sum, and wanted to annuitise at least two-thirds. Cosatu threatened to strike over the changes, saying the government had no right to compel workers to annuitise their savings, especially without proper consultation with labour and other partners.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.