By Simon Nare
Trade union Solidarity is threatening legal action if Cosatu’s proposal to dip into the Government Employees Pension Fund (GEPF) is heeded by Finance Minister Enoch Godongwana to offset a R60 billion deficit in the Budget.
The union said the pension fund was off limits and Cosatu’s proposal was extremely dangerous and must not be considered.
“Retirement money belongs solely to pensioners and the workers who make contributions to the GEPF for their retirement. The GEPF does not belong to the ANC, nor does it belong to Cosatu or anyone else. The GEPF may only use funds in the interests of its members.
“Solidarity’s legal team is ready to act if any attempt to misuse GEPF money or contributions outside the direct interests of its members is continued with,” the union’s deputy general secretary Marius Croucamp said on Monday.
Croucamp said Solidarity was strongly opposed to Cosatu’s proposal and its lawyers were ready to head to court to challenge the proposal if it was adopted.
Cosatu’s proposal comes after the tabling of the 2025 Budget was postponed to 12 March due to disagreements in the Cabinet on increasing value-added tax by two percentage point to raise funds.
Cosatu parliamentary co-ordinator Matthew Parks proposed that Treasury initiate discussions with the pension fund to raise the R60 billion that was required to balance the Budget.
Croucamp said recent research by the Solidarity Research Institute has shown that GEPF members were opposed to it being used by the state.
“GEPF members have in no way given a mandate that justifies proposals such as those put forward by Cosatu.
“It would be reckless, ill-considered and unfair to create a precedent where retirement contributions are used to make amends for the government’s mismanagement, poor policies and corruption. It is this incompetence and dishonestly that has, to a large extent, caused the budget deficit, and it is wrong to penalise pension fund members for it,” Croucamp said in a statement.
Cabinet is meeting this week to discuss the Budget.
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