Cosatu: Meeting with ANC on new pension laws achieved nothing

Cosatu’s officials met the ANC and representatives from National Treasury on Monday night.

FILE: The federation has opposed the new pension laws saying workers have the right to withdraw all of their savings when they retire. Picture: Thomas Holder/EWN.

JOHANNESBURG - The Congress of South African Trade Unions (Cosatu) says its meeting with African National Congress (ANC) leaders over the new pension laws failed to achieve anything and it will push ahead with a campaign to have the law repealed.

Cosatu's officials met the ANC and representatives from National Treasury on Monday night.

The federation has opposed the new pension laws saying workers have the right to withdraw all of their savings when they retire.

The new law only entitles workers to take out a third of their pension, with the other two-thirds being paid out in annuities.

Cosatu spokesman Sizwe Pamla said, "We have a mandate from the congress that says in an event this happens, we mobilise workers and that's what we are busy with. We are currently ensuring that we fight a Section 77 notice that should give us permission for the strike and we'll take it from there."

Last week, personal finance experts said the laws don't actually change pensions radically.

Old Mutual corporate consultant Michelle Acton said this is not a big shift.

"Those benefits fully belong to those individuals. They don't belong to anyone else. That structure is not changing. The only thing that has changing is how that benefit will be paid out when we get to retirement."

She added that this will help people to have a better retirement.