Newsletter • Quarter 3 • 2021
Is the government going to take YOUR retirement FUND savings?
In August this year, the Department of Social Development released a green paper proposing the creation of a centralised National Social Security Fund managed by the government (a government pension fund).
The National Social Security Fund intends to provide basic benefits for all qualifying citizens, including all employees in the private sector.
One criticism is that this may reduce benefit security for members due to a number of deficiencies in the proposed system.
A 'green paper' is a government policy discussion paper that proposes possible action in terms of policy and legislation. There are many more processes required before Cabinet approves any of the proposals, so a green paper is by no means the final position on any matter presented in it.
What is next and what does this mean for you?
On 31 August 2021 the Minister of Social Development withdrew the green paper proposing the creation of a centralised National Social Security Fund.
In conclusion – NO, THE government is not taking your retirement fund SAVINGS.
We welcome the decision to withdraw the green paper because the proposal ignored recent retirement fund industry reforms, which are aimed at: