LEGISLATIVE CHANGES THAT SHOULD BE MADE IN ORDER TO MORE PROPERLY REFLECT THE PENSION PROMISE THAT AN EMPLOYER MAKES TO ITS EMPLOYEES AND TO BETTER PROTECT RETIREMENT SAVINGS (A PERSONAL VIEW).
South African law does not require employers to provide their employees with occupational retirement funding or even access to occupational retirement funding arrangements such as pension and provident funds. Nonetheless, a significant percentage of formal sector employers do. Traditionally this has taken the form of membership of defined benefit pension funds but, since the 1980’s, there has been a big shift towards defined contribution funds and few employers offer membership of defined benefit funds anymore. Many of those that do are now considering whether or not they should follow the general trend, particularly in the light of the onerous new provisions of the Pension Funds Act.Read further