Retirement Reform In South Africa: The Influence Of International Social Security Standards And Human Rights Instruments

The unique retirement funding system in South Africa, encompassing social assistance for older persons, occupational retirement funds providing retirement benefits to members and private retirement savings, is undergoing radical reform. Due attention has to be given to international human rights instruments and social security standards in the design of any new legislation dealing with retirement. This article commences with a brief overview of why reform of the South African retirement funding system is required and a case is made for intergenerational solidarity as a core principle on which the reforms and future legislation on older persons should be based. It then examines selected international standards related to retirement, and highlights areas where statutory reform is required to bring South African law in line with these standards. The main focus of the paper is on the seemingly divergent views of international organizations on the extent to which intergenerational solidarity should form the basis of retirement reform. It is suggested that, although none of the International Labour Organization's (ILO) core social security standards have been ratified by South Africa, the ILO still has an important role to play in providing guidance in respect of retirement funding reform, based on its clear preference for solidarity-based national social security schemes.