Retirement fund rumours 'lies'

The retirement reforms proposed for next year have been dogged by "rumours" and "blatant lies", according to Finance Minister Nhlanhla Nene.

The changes are meant to take effect on March 1. They will make provident funds more like pension funds and require a certain amount of pension preservation when the beneficiary switches jobs.

Although the government would like to see members preserve their funds until they retire, it had not changed the law yet, Nene said last month.

"Employees still have the right to cash in their pension and provident funds," he said, adding that the changes would affect only a portion of the money invested after March 1.