Government and trade unions Cosatu, Fedusa and Nactu on Friday dismissed rumours suggesting that government would take pension and provident savings as part of social security reform.

In a rare show of unity, Finance Minister Trevor Manuel, Social Development Minister Zola Skweyiya and union representatives held a joint press conference asking workers not to "cash-in" their retirement funds.

This comes after rumours suggesting government's intention of preventing workers from taking their retirement fund savings once a new mandatory retirement fund was established.

"This is a gross misrepresentation of the truth," the parties said in their joint statement.

“We wish to unequivocally dismiss these rumours as malicious and untrue, and jointly state the rights and choices attached to existing savings will continue to be protected."

In his Budget speech in 2007, Manuel announced government's plans to introduce a retirement savings scheme that would force all formally employed South Africans to contribute a portion of their monthly salaries to it.

The mandatory scheme known as the National Savings Fund was planned to be introduced by 2010.

Rumours that have circulated suggested that government intended taking the money from workers' existing retirement savings for the savings fund.

Manuel said this has led to many workers cashing in their savings and in some cases even quitting their jobs to access their retirement funds.

“I know of cases such in the Western Cape where 1 200 out of 2 000 workers resigned last year to get their retirement funds," he said.

"We are a country with low savings and if people seek to remove their savings from the pool, the country will have a weak future," he said.

He said the government and unions would go on road shows to assure workers that their retirement money was safe.

Government would also withdraw the licences of any financial advisors who were found to have help spread the rumours.