Some technical aspects of proposed mandatory pension fund misunderstood - dept

The Social Development Department said that it would clarify its proposed mandatory pension fund after withdrawing the green paper on the social security and retirement reforms after criticism.

Picture: 123rf.com

CAPE TOWN - The Social Development Department said that it would clarify its proposed mandatory pension fund.

It has withdrawn the green paper on the social security and retirement reforms after criticism.

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Government wanted employers and employees to pay up to 12% of their earnings into a state-run social security fund which critics have described as flawed and rushed.

The department's Lumka Oliphant said that some technical aspects of the proposal had been misunderstood.

“It's become apparent that some of these areas need further clarification to avoid any confusion, by virtue of this being a discussion paper. The department is pleased by the level of public discourse on this subject matter, as it reinforces the fact that society should be involved in the policymaking space,” Oliphant said.

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