Saipa urges govt to stick to its pension reform plan

The institute is urging government to stick to its plan to implement the retirement-funding reforms.

FILE: South African rand. Picture: Christa Eybers/EWN

CAPE TOWN - The South African Institute of Professional Accountants (Saipa) said new pension laws could help foster a culture of saving.

The institute is urging government to stick to its plan to implement the retirement-funding reforms.

But the Business Day is reporting this morning the implementation of the new provident fund rules could be delayed due to pressure from trade unions.

The institute's Ettiene Retief said, "So by forcing you to keep it for the purpose of retirement saving, definitely kind of forces your hand towards that savings. So I do think it will indirectly have a positive impact on people's saving culture."

The Tax Administration Laws Amendment Act and the Taxation Laws Amendment Act was signed into law by President Jacob Zuma and has been met with stiff opposition by Congress of South African Trade Unions.

The law is due to take effect in March.