Facing Retirement Saving Plan, Good Governance and Reform. The best way to go.

Exploring a Comprehensive Social Security System in South Africa Presentation by Sam Tsiane(NUMSA) at the IRF annual conference 18-20Aug 2013

1.G Issues Governance proposal 1.1.Governance 1.2.Cost 1.3.Saving 1.4.process 2.Cosatu position on comprehensive social security.

Governance Election of trustees in commercial umbrella fund-welcome. Trustee training-Toolkit accepted but it should be accessible. PF 130 –good tool for governance.

COST Passive investment versus Active investment argument does not make sense.i.e. cost of passive between 15bibs and 20bibs whereas active is between is between 30bibs and 60bibs. Whereas active can give you 100 and 400 bibs.

Cost continues…… What about the risk benefit Contribution range from 3% to 6% for three times salary.

Cost continues.. Cost continues…… Retirement annuities are expensive and therefore prices should be regulated. Funds should be consolidated per sector/Industry. Membership should be compulsory

Process Very slow if there is any movement-Different govt. dept. have different position. previously social development was active but today they’re nowhere to be seen. Today treasury want saving Tomorrow DOL will come and tell about ring fencing U.I and Compensation Fund. Interministerial cant agree and present one paper position of government.P

Process continues NEDLAC ignored by treasury. Piece meal approach More than ten years ago Taylor commission proposed comprehensive social security. South Africa is not signatory to I.L.O. convention 102(1952)minimum social convention.

NUMSA/COSATU demands: Comprehensive Social Security With the following pillars -Free access to quality health care -Free and compulsory education -Free and accessible public transport -Decent job for all or provide sufficient unemployment benefit. -Sufficient social grant for the old age and the sick with reasonable net replacement ratio.

Thank you