According to a report by Linda Ensor the trade unions are blocking reforms to preserve a greater share of retirement savings and this may delay implementation once again.
‘In October last year, the Treasury postponed the implementation of the law promulgated in 2013 for a year to accommodate labour’s opposition, and is now under pressure to make further concessions. In terms of the law, two-thirds of provident fund benefits would have to be converted into annuities except in certain specified circumstances, to ensure the preservation of workers’ savings. Treasury officials have had numerous meetings with trade unions over the past 12 months in a bid to thrash out an agreement’.
Read the full report Labour force resists state’s retirement savings reform first published by Business Day on BDlive today.