South African President Jacob Zuma has appointed Presidency Minister Jeff Radebe to facilitate talks between Treasury and Cosatu on the Tax Administration Amendment Act, a day after Cosatu threatened to hold mass protests unless the new retirement law is scrapped.

“President Jacob Zuma has assigned the Minister in the Presidency for Planning, Monitoring and Evaluation, Mr Jeff Radebe to assist the National Treasury and the Congress of South African Trade Unions (Cosatu) in their discussions relating to the Tax Administration Amendment Act,” his office said.

Under the new law, which takes effect on March 1, provident fund members will on retirement no longer be able to withdraw all their savings as a lump sum, but only a third. It was introduced to prevent provident fund members withdrawing and spending the full amount and becoming a burden on the state. But Cosatu says government has no right to dictate to workers how to spend their deferred earnings.

The trade union federation has termed Zuma’s signing of the law an “act of provocation”.

Cosatu president Sdumo Dlamini claimed on Thursday: “There was no consultation on this matter. Government would have steamed ahead without taking our own views over this matter, in particular Cosatu views.”

He added: “Going forward we shall act urgently to mobilise workers and galvanize workers.”

The presidency said Zuma had also appointed a five-member inter-ministerial committee to mull social security reforms to address weaknesses in the state welfare system.

“The IMC will focus on comprehensive social security reforms with a view to addressing the gaps and weaknesses identified, as well as ensuring the provision of comprehensive social security for all,” the presidency said.

The team will be chaired by Social Development Minister Bathabile Dlamini. The deputy chairman will be Finance Minister Pravin Gordhan and the remaining three members the ministers of health, labour and transport.

In 2014, South Africa had 16.4-million welfare grant beneficiaries and forecasts are that by 2017, the state will be spending R149-billion annually on social security.