Numsa's social security section has held meetings with all the trustees across the country around government's proposed National Security Fund. We even went to a stage of mandating Cosatu about labour's proposal in November 2007. Shop stewards should continue to get updates on the negotiations at their local shop stewards councils.

Will the government nationalise the provident/pension funds?

A rumour has been spread which says that the government wants to nationalise the pension/provident funds.

Lies, damned lies! The government has no intention of nationalising the pension/provident fund. The government is instead looking at making sure that workers retire comfortably.

The government in 2004 issued a discussion paper on retirement which had the following proposals:* To open a pension/provident fund for all workers irrespective of sector or industry.

* Those who don’t want to belong to the government scheme must belong to the industry or sector scheme which is national and which has proper administration with a reasonable administration fee and sound governance.

* Government will subsidise those who earn less than R40 000 per annum (or R3 300 per month).

* Workers may be allowed to take up to half of their retirement fund before retirement and the other half to be withdrawn when a worker goes on retirement.*

Workers are expected to contribute 12 per cent to the retirement fund and 3 per cent for medical aid which will benefit workers when they go on retirement (post retirement medical aid cover)

* The government wants to negotiate with organised labour in 2008 and 2009 and implement the new system by 2010.

Therefore workers are expected to give their shop stewards a mandate on these matters. Ask your shop steward about details of the negotiations.

Source

Numsa News