Incidentally, this is why I oppose pension funds: they significantly reduce people's power over their (implicit) retirement savings. It's almost a Law of Nature that the less power you have over your money, the less of it you will have in the end.
Here are some relevant links:
Patel to tap pension funds - Times LIVE
Patel eyes pensions trillions for state fund - Free Market Foundation
"The unintended consequences of this action are entirely predictable - individuals will stop investing in retirement vehicles, thereby reducing the level of savings in the economy, resulting in less money for genuine investments that drive economic growth."
Patel's pension plan dangerous - DA - Politicsweb
Uasa opposes Patel
"If the state were a business, we at Uasa certainly would not have invested our hard-earned retirement savings with them."
NUMSA backs Patel's pension
Patel's pension plan 'workable' - Fin24.com
Economist Dawie Roodt: "Politicians are not good at identifying winners and here we have the idea that pension funds be forced to invest 5% of their savings into a politically determined project."
Well, at least we're not Argentina:
Argentina Makes Grab for Pensions Amid Crisis - WSJ