The DA has asked the National Treasury to reject an ANC policy proposal that a portion of pension funds be prescribed for investment in developmental projects.

“Finance institutions should invest pension funds based on the prospective return for pensioners and should not be forced by government to invest in speculative projects,” Democratic Alliance spokesman David Ross said on Wednesday.

This proposal could be seen as a tax on pension funds, he said.

“I have written to both the Minister of Finance Pravin Gordhan, and Mr Arthur Moloto of the Government Employees Pension Fund, to raise our concerns with regards to the proposals of prescribed investments for pension funds.”

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