Cosatu condemns new pension regulations

By Tando Mfengwana
29 May 2007

Trade union federation Cosatu has called for the withdrawal of new regulations to the long-term Insurance Act. They have also condemned the process at which these were being drafted and published without consultation with workers and pension fund members.

It says that the process was influenced by the long-term insurance industry. The industry paid back R3 billion, which Cosatu says it “fleeced for years through unjust charges and undisclosed penalty fees.”

“We want to see the whole thing go back to Nedlac (National Economic Development and Labour Council), so that the interest of the workers particular and the community more generally can be safe guarded in these very important regulations” says Cosatu spokesperson Patrick Craven.

In terms of the new regulations long term insurance companies can continue charging undisclosed fees and penalties, premium reduction fees, casual event charges, and early termination charges.

Cosatu is calling on Finance minister, Trevor Manuel to withdraw these new regulations and to consult all interested parties.