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Category Retirement
SUB CATEGORIES Annuties |  General |  Savings & Investments | 

Retirement Fund Reform: Compulsory Contribution

07 February 2007 SA Chamber of Business

It is important to bring much needed certainty to the area of holistic retirement provision.  Progress has been slow to date largely due to the challenges of the South African social security environment as highlighted by the Taylor Committee in 2002.  SACOB has been part of the NEDLAC Task Team on Social Security in the Social Development Chamber of NEDLAC during 2002 and 2003.

As far as the Taylor Committees proposal of compulsory contribution by all formally employed people was concerned, the mandated view of organised business was that this should not become a disincentive for employment, particularly by small businesses.

The National Treasurys Discussion Paper on Retirement Reform released in 2004 overtook the debate arguing that compulsion was not necessary and coming up with its creative proposal of a National Savings Fund.  SACOB was again part of a new NEDLAC Task Team on Retirement Reform, this time under the Public Finance and Monetary Policy Chamber of NEDLAC.  Unfortunately progress has been extremely slow, largely due to the fact that National Treasury has been unable to publish a promised Second Discussion Paper in 2006.  As recently as the last Chamber meeting earlier this month National Treasury was not in a position to report on progress.

We trust that if there are new developments on compulsory contribution, as reported, that these will soon be tabled at NEDLAC as this is vital for organised business and organised labour, and indeed for the country.

Quick Polls

QUESTION

The South African authorities are hard at work to ensure the country is removed from the global Financial Action Task Force grey-list by February or June 2025. What do you think about their ongoing efforts?

ANSWER

But what about the BRICS?
Compliance burden remains, grey-list or not.
End-2025 exit is too optimistic.
Grey-list is the new normal.
Too little, too late.
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