Numsa demands repeal of new retirement tax reforms

The National Union of Metalworkers of South Africa (Numsa) is demanding that recently introduced tax retirement reforms be repealed immediately.

It warned on Tuesday that “retiring without being able to choose to cash in provident fund money will plunge thousands into abject poverty because‚ in the circumstances‚ they see this as their only possible lifeline”.

“This is workers’ own money‚ part of their wages. Previously workers had a choice: they could take all their retirement money as a lump sum or they could use it to buy a pension.

“From now on‚ they will be forced to receive the majority of it as a pension‚ through what is called ‘annuitisation’‚” Numsa said.

“What makes it even worse is that these laws have been pushed through without agreement having been reached at Nedlac‚” the union added.

It called instead for legislation to be implemented to radically transform the country’s “trillion rand lily white and capitalist retirement industry” and placed under workers’ control.

The government must also urgently introduce a comprehensive social security system on which workers must be fully consulted before any proposal goes before Parliament‚ it said.

It also called for a national living wage to be introduced “with speed” and for a comprehensive national health insurance system to be created.

“We at Numsa‚ state that without abolishing the apartheid economy and society‚ no meaningful provident or pension fund system can be established in post apartheid South Africa‚” the union stated.