Speculation has been rife on social media that South Africa has concretely pushed the retirement age to, say, 65 or even to 70, for both public and private sectors. Some of these posts have even suggested these changes would come into effect in 2025. Both the National Treasury and the Government Employees Pension Fund (GEPF) have refuted such assertions.
In the first place, it remains a fact that most government employees retire under the provisions of the Public Service Act of 1994, which sets the retirement at 60 years, with voluntary retirement allowed at 55 under certain conditions. In the private sector, there is no fixed retirement age nationwide; it is usually stipulated in contracts, or under rules of the pension funds or company agreements.
To Put It Plainly: no law has been passed, advertised, or gazetted to make older age a universal retirement-per se, and therefore any such allegations need not be entertained.
What Is Being Considered: Reform Debates & Bills
While no sweeping change has been approved, there are discussions and draft proposals aimed at reforming retirement, pension, and employment age norms. For instance:
- According to the National Treasury, the “Retirement Reform” package encourages higher retirement savings, alignment in pension fund governance, and sustainability of retirement systems.
- Reports and commentaries have favoured an investigation into the SPA; for example, the model of gradually increasing SPA, 67 by 2028 and 68 by 2046, is cited in some analyses.
- From a legal perspective, one could argue that the enforced retirement solely on age grounds may amount to unfair dismissal or unfair discrimination in terms of the Labour Relations Act, especially if it clashes with contractual agreements.
- The proposals have not yet come into legislation binding upon the courts.
Legal Safeguards and Rights of Employees
In the absence of a newly enforced retirement age, the employee and employer must operate within existing laws:
- It is unlawful for an employer to unilaterally increase or reduce the retirement age, unless the parties consent thereto; such conduct may give rise to an automatically unfair dismissal under the Labour Relations Act or under the Employment Equity Act as unfair discrimination.
- Usually, retirement age is a term agreed upon in an employment contract or policy. Dismissing someone purely on the basis of age, when there has been no agreement as to age, is legally very precarious.
- A wide interpretation of the so-called “normal retirement age” of 65 may be successfully challenged in court if evidence is not presented that it applies to the job or industry in question.
- Therefore, whatever the debate, much of the existing legislation keeps several workers protected from arbitrary or forced retirement beyond agreed terms.
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