Posted: Jan 17, 2017 8:32 am
crank wrote:In the US, woman whose husbands worked get Social Security. Pensions would also go to a widow. But, if you never worked, or had a husband who did, you get no SS. Pensions have been attacked in all kinds of ways, and employees have to contribute a lot more, and it isn't uncommon for them to lose it all so to games played in mergers and acquisitions, in hostile takeovers, in companies going bankrupt, etc. The levels are very dependent on salaries and years of employment.
Luckily here, pensions go with you to new jobs, the law doesn't allow companies to mess around with people's earnings. Also "pension funds" are separate entities so even if the company goes broke, the pension fund survives. It's all very strictly protected under the law. Even if you're fired from a job (and that's extremely difficult so you have to do something really bad), you still get your pension, and it will be paid out to you, in full, including the company's contribution and growth. Barry started out at the Prudential when he was 18, he worked for their London office for a year when he travelled, and in the early 90s it was taken over by another insurance company (under the boycotts the Pru pulled out of South Africa, so it was bought out). His pension went with him. He retired with 45 years' service and full salary as his pension. If he dies first, I get the pension as a widow.
Now though because of the onerous labour laws that make it almost impossible to fire anyone, companies employ people on contract rather than as employees, so their contract can be revoked if something happens that would make them get fired, or be retrenched under a full employment contract. They get paid more to make up for the lack of pension contributions, and are expected to make their own arrangements.
As for executives and taxes, there are all kinds of games played, easy to do when a great deal of the compensation is in stock options. Since the early eighties or so, exec pay went from about 30 to 40 times the median earnings of a companies employees, to 300 to 400 and more now.
That's just disgusting. I did a quick look around for figures here. It seems the average managing director earns about 10 times that paid to someone in a clerical job, like a payroll clerk. It varies from city to city though. It costs more to live in Johannesburg than in Durban, so people get paid more.