'No more cuts to our salaries' — Mzansi gives social security fund proposal the thumbs down

Government's proposed mandatory pension and insurance system has been given an overwhelming thumbs down by readers who took part in a TimesLIVE poll.

On Wednesday, social development minister Lindiwe Zulu published a green paper on a pension and insurance system that will see employers and employees pay a percentage of their earnings into a state-run national social security fund (NSSF).

The contributions will be between 8% and 12% of earnings and the proposed fund is based on “social security principles of risk pooling and social solidarity”.

The green paper also proposes that employees earning below an income threshold of R22,320 per year should not be obliged to contribute to the NSSF for retirement or risk benefits but will continue to contribute to the Unemployment Insurance Fund (UIF).

HOW DO I MAKE MY VOICE HEARD?

Members of the public have until December 10 to comment on the proposal.

Written submissions can be forwarded to the following address:

The Director-General: Department of Social Development, 134 Pretorius Street, HSRC Building, Pretoria; Private Bag X901, Pretoria 0001. For attention: Mr John Tebeila, Acting Director: Retirement Reform.

Email: GreenPaperCSS@dsd.gov.za

Tel: 012 741 6820

WHAT IS EVERYONE ELSE SAYING?

TimesLIVE recently ran a poll asking the public what they thought about the proposal.  

The poll garnered more than 6,000 votes in less than 24 hours, with 94% of voters saying no to more salary cuts. 

Four percent said they would wait and see if it gets passed, and 2% said the proposal was a great way to look after each other.

On social media, readers were split, with some supporting the initiative. 

“I support the initiative for employees to have a mandatory pension fund with the current status employee retire with R0 saving. Imagine earning R30,000 and when it's time to retire you did not save, the only fund you receive is UIF,” said Swenkie Ernest Letsoara. 

Others said more tax contributions would see them being broke. 

“We are already paying double for everything. We pay taxes so that we can have adequate healthcare, but we have to have medical aid to get decent healthcare, and on top of that Gap cover, school fees, aftercare fees, security, internet utilities, levies on utilities, we pay for petrol like it's gold and the road that's not maintained,” said Davonia C Ohlson.