Today's Labour News

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nedlacPatrick Cairns writes about the new discussion document on social security reform tabled by government at Nedlac last Friday.  

The document outlines how the government wants to achieve universal pension fund coverage by implementing compulsory contributions to a “centrally managed public fund” – the National Social Security Fund (NSSF).  Cairns notes that the idea is not new, as a public pension fund was first proposed in 2012, but it now seems to have new impetus.  Ifit is implemented, there could be major implications for the local financial services industry.  The document makes it clear that private vehicles such as pension and provident funds or retirement annuities (RAs) will remain important, but that some things will have to change.  Massive consolidation of pension funds is expected and it is thought that only around 300 of SA’s 3,000-odd funds will survive the introduction of the NSSF.

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