Government’s mandatory pension and insurance system proposal has been given an overwhelming thumbs down by many South Africans.
On Wednesday, social development minister, Lindiwe Zulu, published a green paper on a pension and insurance system that will see employers and employees pay a percentage of their earnings into a state-run national social security fund (NSSF). The contributions will be between 8 and 12% of earnings and the proposed fund is based on “social security principles of risk pooling and social solidarity”.
The green paper also proposes that employees earning below an income threshold of R22 320 per year should not be obliged to contribute to the NSSF for retirement or risk benefits but will continue to contribute to the Unemployment Insurance Fund (UIF).
Members of the public have until December 10 to comment on the proposal.
Written submissions can be forwarded to the following address:
The Director-General: Department of Social Development, 134 Pretorius Street, HSRC Building, Pretoria; Private Bag X901, Pretoria 0001. For attention: Mr John Tebeila, Acting Director: Retirement Reform.
Email: [email protected]
Tel: 012 741 6820
TimesLive recently ran a poll asking the public what they thought about the proposal, the poll gathered more than 6 000 votes in less than 24 hours with 94% of voters saying no to more salary cuts. 4% said that they would wait and see if it gets passed and 2% said that the proposal was a great way to look after each other.
What do you think?
Sources: MSN
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