Q&A’s, 2008

NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY

Question 1584

Dr S M van Dyk (DA) to ask the Minister for Public Enterprises:

(1) What is the (a) lowest and (b) highest single amount that was paid out in pension or benefits to (i) pensioners falling under the Railways and Harbours Amendment Act, Act 26 of 1941, and (ii) normal pensioners of the Transnet Second Defined Benefit Fund in June 2008;

(2) what was the average net monthly pension for (a) pensioners under the Railways and Harbours Amendment Act, Act 26 of 1941, and (b) normal pensioners in June 2008;

(3) (a) how many trustees manage the fund and (b) what annual compensation and other financial benefits do they receive;

(4) what is the annual financial (a) compensation and benefits of each member of Transnet’s board of directors and (b) package of Transnet’s chief executive officer (CEO)?
NW2332E

Reply

(1) (a)The lowest single amount paid in June 2008 to a pensioner falling under the Act was R225.66. The pensioner concerned retired on 1 August 1988, after completion of 18 years of service and was receiving a salary of R437.50 per month at retirement. In 2007, this pensioner received an ex gratia bonus from Transnet of approximately R9 850.58 and received an ex gratia bonus of approximately R6 211.20 in 2008. This is in addition to the bonuses paid by the TSDBF of R34.04 in 2007 and R68.08 to date for 2008.

(b) (i)The highest single amount paid in June 2008 to a pensioner falling under the Act was R774.80. The pensioner retired on 16 September 1974 after completion of 22 years of service and received a salary of R75.00 per month at retirement. This pensioner received an ex gratia bonus from Transnet of approximately R3 004.62 and received an ex gratia bonus of approximately R229.25 in 2008. This is in addition to the bonuses paid by the TSDBF of R136.72 in 2007 and R273.45 to date for 2008.

(ii) The lowest single amount paid in June 2008 to a pensioner in the TSDBF was R219.44. The total service of this pensioner was approximately 10 years and his salary at retirement on 1 August 1996 was R1 207.50 per month. In 2007, this pensioner also received an ex gratia bonus from Transnet of approximately R25.82 and he will, in 2008, receive an ex gratia bonus of approximately R5 892.72. This is in addition to the bonuses paid by the TSDBF of R38.72 in 2007 and of R77.45 to date for 2008.

The highest single amount paid to a pensioner in the TSDBF in June 2008 was R57 242.00 per month. This pensioner had 43 years of service and a salary, on retirement on 16 June 1996, of R53 280.00 per year. This pensioner also received an ex gratia bonus from Transnet of R13 806.85 in 2007 and R17 275.74 in 2008. TSDBF paid these pensioner bonuses of R10 303.62 in 2007 and R20 607.24 to date for 2008.

(2) (a) The average nett monthly pension for pensioners falling under Act 26 of 1941 was R262.00 in June 2008.

(b)The average net monthly pension for a pensioner in the TSDBF was R2 833.00 in June 2008.

(3) (a-b) In terms of the Rules of the TSDBF there are 6 trustees on the Board of the TSDBF. Four of these trustees are appointed by Transnet, two of whom are employees of Transnet and the other two are independent non-executive directors on Transnet’s Board of Directors. The two pensioner trustees were elected by the pensioners and beneficiaries of the TSDBF.

The two pensioner trustees and the two independent non-executive directors of Transnet receive a maximum of R4 000 per day for attending meetings. Their travel and subsistence costs are also provided. The above costs are effectively carried by Transnet as Transnet pays the administration costs of the TSDBF.

(4) (a) Table 1: The annual financial compensation and benefits for the financial year ended 31 March 2008 for each non-executive director of Transnet is tabled below:

Name of Board Member
 

Fees
(R’ thousand)
 

Other payments
(R’ thousand)
 

2007
(R’ thousand)
 

2008
(R’ thousand)
 
 

FTM Phaswana
 

1 049
 

1
 

1 050
 

1 050
 
I Abedian
 538
 41
 510
 579
 
GK Everingham
 600
 125
 593
 725
 
NBP Gcaba
 454
 103
 560
 557
 
NSD Haste OBE
 300
 -
 300
 300
 
SE Jonah KBE*
 428
 1
 451
 429
 
PG Joubert
 600
 1
 488
 601
 
NNA Matyumza
 375
 1
 484
 376
 
S Nicolaou
 375
 52
 459
 427
 
NR Ntshingila
 450
 1
 376
 451
 
BT Ngcuka
 387
 127
 442
 514
 
KC Ramon
 375
 1
 466
 376
 
Total
 5 931
 454
 6 179
 6 385
 
 

*Resigned during the current financial year
 

(4) (a-b) Table 2: The guaranteed annual financial compensation and benefits of Transnet’s executive directors is provided in table 1 above. The Group Chief Executive (Transnet GCE) details are set out below:

Group Chief Executive
 (R’ thousand)
 
Salary (basic)
 4853
 
Post retirement benefit fund contributions:           
 455
 
Other contributions:                     
 -
 
Other payments:
 103
 
Total 2007:
 5056
 
Total 2008:
 5411