Q&A’s, 2006

NATIONAL ASSEMBLY
Question for Written Reply
IQP NA No. 30 - 2006 dated 15 September 2006

Question 1172

Mr W D Spies (FF Plus) to ask Minister of Public Enterprises:

What (a) progress has been made in finding a solution in respect of the restructuring of Transnet's Second Fixed Benefit Fund and (b) solutions has he proposed in the interim to ex-Transnet workers currently receiving pensions that are insufficient to meet their daily needs?

Reply

(a) No interim measures have been proposed in the above respect. However, Transnet and the trustees of the Transnet Second Defined Benefit Fund are currently investigating various options available to them in respect of finding an appropriate solution for this fund.

There is a concerted effort, by Transnet and the trustees, to primarily resolve the volatility of the pension obligations and to enable pensioners to have a high degree of certainty of receiving their current pensions plus a guaranteed 2% annual increase. The level of pension payments and the pension increase policy are two factors that are also being investigated in this process.

(b) The pensioners of the Fund receive a pension benefit that is calculated taking into account a number of factors, including but not limited to, years of service, pensionable salary levels, accrual factors, annual pension increases etc. In addition, these pensioners currently receive an annual pension increase of 2% in accordance with the rules of the fund.

To date a number of proposals have been received and are in the process of being reviewed and considered.