In a slightly surprising move, Cosatu managed to convince National Treasury to delay the implementation of the proposed National Retirement Reform to 2017. It seems that this will apply to all the proposed T-Day implementations.
In short:
- Harmonisation of retirement benefits will not take place. The 27,50% (capped at R350,000) will not be implemented and the current status quo will remain.
- Provident Funds will not be changed to Retirement Funds.
It is important to note that Minister Nene still needs to table the final version of the Tax Administration Laws Amendment Bill in Parliament.