The following are the main points raised by the committees looking into proposed changes to retirement funding.
Old Age Assistance:
* A gradual move to abolish the means test for the State old age pension. This would cost R2 billion extra;
* Old age pensions should be determined both by the consumption needs of old people and the fiscal situation;
* Eligibility for old age assistance should be retained at age 60 for women and 65 for men.
Private Sector Retirement:
* Administration be made more efficient and fraud eliminated;
* A clear statement on protecting accrued tax benefits;
* Maximum age for RA funds should be raised to 75 or eliminated;
* Equal tax treatment across funds;
* Possible minium pensions.
Public Sector Retirement:
* Total equality in tax treatment of public and private sector pension funds to be achieved from March 1, 1998;
* Examine a pay-as-you-go funding arrangement and convert from a defined benefit to a defined contribution fund;
* Consider lowering the employer's contribution down to 17 percent and lower. Last year it was 18 percent and the previous year 20,8 percent.
Medical aid provision:
* Pre-fund for medical costs using an existing pension or provident fund, or create a new health-related vehicle. However, there are problems with both suggestions;
* Departments of Health and Finance to meet to discuss the theme committee's findings.