Johannesburg - President Jacob Zuma on Thursday responded to criticism from the Congress of South African Trade Unions (Cosatu), saying he did not act unilaterally when he signed the Tax Administration Amendment Act, which affects pensions.
Cosatu issued a statement on Wednesday saying it had noted that the National Treasury “is proposing to gradually phase out lump sum pension payments in a bid to foster retirement savings”.
The union federation said it was concerned that the proposal “has been made public before a long-awaited discussion paper on the future of retirement funds has been submitted to Nedlac, as the government promised it would”.
Nedlac – the National Economic Development and Labour Council – facilitates dialogue among its social partners including government, labour, business and community representatives.
But on Thursday the Presidency said: “President Jacob Zuma did not act unilaterally when signing the Tax Administration Amendment Act.”
President Zuma’s office added that: “The law was considered at Nedlac. It was also discussed openly in Parliament. It was passed by both the National Assembly and the National Council of Provinces following public hearings.”
The contentious matter has been seen as a sign of tension in the Tripartite Alliance comprising the ruling African National Congress, Cosatu and the South African Communist Party.
ANA