This news aggregator site highlights South African labour news from a wide range of internet and print sources. Each posting has a synopsis of the source article, together with a link or reference to the original. Postings cover the range of labour related matters from industrial relations to generalist human resources.
Business Report writes that Deputy Finance Minister David Masondo has reassured pension fund managers that the changing regulatory environment will not give the government power over their savings.
Masondo last week told a round-table about the role of pension funds in economic recovery and growth that the government would leave such decisions to the funds’ trustees. “The National Treasury is in a process of reviewing Regulation 28 of Pension Fund Act to make it easier for pension funds to increase investment in infrastructure, should their board of trustees opt to do so,” he advised. The regulation prescribes maxima for the various types of investment that may be made by a retirement fund. There has been ongoing speculation about whether the amendment of the regulation would see government subjecting pension funds to prescribed asset regulations. Masondo urged pension fund managers to support the government’s objectives and invest in domestic infrastructure projects, saying: “Economic growth depends on investments and without this, there will be no new products, new markets, new employment opportunities and no tax collection for the government. Savings serve as a source of supply for investments. Households, businesses and the government borrow from this savings to undertake economic activities.” Infrastructure development is at the centre of President Cyril Ramaphosa’s Economic Recovery and Reconstruction Plan to boost the economy post Covid-19.
Read the full original of the report in the above regard by Siphelele Dludla at Business Report
Get other news reports at the SA Labour News home page