Support for proposed social security fund

COSATU and the SA Federation of Trade Unions (Saftu) have come out in support of the proposed comprehensive social security and retirement system by the Department of Social Development.

The controversial Green Paper, which was gazetted on August 18, was withdrawn by Minister Lindiwe Zulu this week. The department yesterday confirmed it would be gazetted again once it had been revised. Department spokesperson Lumka Oliphant said there had been widespread commentary on the key recommendations.

The implementation of the Green Paper would mean that all South Africans earning above a certain income level would have to pay between 8% and 12% of their salaries into the fund, which would be used to pay social and pension grants.

“Some of the technical aspects of the proposals were not well understood and many have misrepresented the proposals, particularly on the National Social Security Fund (NSSF).” Oliphant said.

Cosatu spokesperson Sizwe Pamla said a fund of this nature would ensure that no one was left behind. “Some workers from the informal; survivalist economy are not catered for or accommodated by the current system.”

Saftu general secretary Zwelinzima Vavi said the union condemned the withdrawal because the paper was a “huge step in the right direction”. Vavi noted that the only problematic provisions of the paper were those that were provisioned to levy the remuneration of workers for the NSSF.

“Saftu is opposed to the proposal that lumps workers and bosses together and (is) set to levy workers 8% –12% of their remuneration for the NSSF.

“However ... we welcome the social security fund, which will provide some benefits to workers in the formal and informal sector, including providing a Basic Income Grant to the unemployed,” Vavi said.