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Media Centre | COSATU Press Statements
COSATU STATEMENT ON PENSION FUNDS AMENDMENT BILL
Issued by: Congress of South African Trade Unions
27 February 1996
COSATU PRESS STATEMENT ON PENSION FUNDS AMENDMENT BILL
Today's unanimous decision by the parliamentary Finance Commit- tee to support a 50% legislated minimum representation of workers on pensions and provident fund boards is an important victory.
It will help prevent the abuse of funds and will ensure worker representation on the boards of all funds, in addition for the first time boards of trustees will be required by law.
The committee decisively rejected the attempt by business to limit members representation to minority representation as well as the argument that members cannot be trusted with important decisions, including investment decisions.
This decision once legislated will need to be followed up by an extensive process of education of fund members and trustee training.
The decision will also assist in the necessary move towards the rationalisation of our funds and in particular the move towards industry based funds. The benefits of economies of scale will be extensive for fund members as well as for the economy in general.
This step should be seen as a major advance in the democrati- sation and reorganisation of our funds. With the finalisation of the Smith Commission recommendations, labour would want to see the overhaul of the system to deal with issues such as compulsory provision of funds, vesting and portability of fund moneys and the need for restructuring of the industry regulator among others.
COSATU's Submission on the Pension Fund Amendment Bill, date February 1996, follows - see For more information : Contact Nowetu Mpati Tel : 011-3394911