Some technical aspects of the proposed compulsory pension fund are poorly understood

The Department of Social Development has said it will clarify its plan for a mandatory pension fund after withdrawing the green paper on social security and pension reforms after criticism.

CAPE TOWN – The Department of Social Development has said it will clarify its plans for a mandatory pension fund.

He withdrew the Green Paper on social security and pension reforms after criticism.

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The government wanted employers and employees to pay up to 12% of their income into a state-run social security fund, which critics called flawed and rushed.

Lumka Oliphant of the ministry said some technical aspects of the proposal had been misunderstood.

“It has become evident that some of these areas require further clarification to avoid confusion, due to the fact that this is a discussion paper. The department is pleased with the level of public discourse on this topic as it reinforces the fact that society should be involved in the policy space, ”said Oliphant.

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