RETIREMENT SCHEMES
Cosatu welcomes stalling of plan on provident-fund payouts
The delay allows for more discussions on the government’s comprehensive social security document at Nedlac
Cosatu has hailed the Treasury’s decision to delay the implementation of the compulsory annuitisation of two-thirds of provident fund payouts as a "victory for workers". Implementation of the measure, which Cosatu has fought against since it was first mooted, has been shifted from March 1 2018 to March 1 2019 in order for discussions on the government’s comprehensive social security document to take place within the National Economic Development and Labour Council (Nedlac). This is the third postponement as the measure was to be introduced in 2015, but to allow for further consultations, was postponed to February 2016 in the face of stiff trade union opposition. It then was postponed again to 2018. The postponement was announced by the Treasury’s director of personal income taxes and saving, Chris Axelson, during a briefing on Tuesday for Parliament’s standing committee on finance on the draft Taxation Laws Amendment Bill and the draft Tax Administration Laws Amendment Bill. He said...
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