Cosatu: ANC needs to look into new pension laws

Zuma has signed tax amendments into law which will over time turn provident funds into pension funds.

FILE: Cosatu president S'dumo Dlamini. Picture: Govan Whittles/EWN.

PRETORIA - Congress of South African Trade Unions (Cosatu) President Sdumo Dlamini maintains it will be difficult for the congress to rally its members behind the African National Congress (ANC) until the issue surrounding the new pension law is resolved.

President Jacob Zuma signed tax amendments into law, which will over time, turn provident funds into pension funds.

Dlamini was speaking at the ANC National Executive Committee (NEC) Lekgotla, which began in Pretoria yesterday.

As the local government elections approach, Dlamini says the ANC needs to look into the new pension laws which come into effect from 1 March.

While National Treasury has explained that the new laws are a means of saving for a more secure old age, Dlamini says employees are simply being let down after working hard for their money.

"We've made the point that there was no consultation on this matter. Government would have steamed ahead without taking our own views."

ANC Secretary General Gwede Mantashe says although there are aspects of the act that must be further discussed, his understanding is that Cosatu will continue to support the party ahead of the elections.

"That they find it difficult here and there, I take it as rumours."

The new laws will force many workers to buy annuity products instead of simply receiving a lump sum on retirement.

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