THE government has once again caved in to
trade union pressure by agreeing to a two-year delay in the introduction
of the compulsory annuitisation of two-thirds of provident fund savings
on retirement.
This is the second time that the Treasury has unsuccessfully tried to implement the provision and then backtracked in the face of strong opposition from the Congress of South African Trade Unions (Cosatu).
The proposed postponement was tabled by Finance Minister Pravin Gordhan at an urgent meeting on Monday with the social partners of the National Economic Development and Labour Council.
Delegations from the Association for Savings and Investment SA, which is strongly opposed to any postponement, and Business Unity SA were also present. Mr Gordhan is expected to announce details of the postponement in his budget vote speech next Wednesday.
This is the second time that the Treasury has unsuccessfully tried to implement the provision and then backtracked in the face of strong opposition from the Congress of South African Trade Unions (Cosatu).
The proposed postponement was tabled by Finance Minister Pravin Gordhan at an urgent meeting on Monday with the social partners of the National Economic Development and Labour Council.
Delegations from the Association for Savings and Investment SA, which is strongly opposed to any postponement, and Business Unity SA were also present. Mr Gordhan is expected to announce details of the postponement in his budget vote speech next Wednesday.
