Question NW3877 to the Minister of Public Enterprises
03 January 2023 - NW3877
Mey, Mr P to ask the Minister of Public Enterprises
(1) Whether, with reference to his reply to question 2557 on 11 January 2022, regarding the settlement of the class action on 11 December 2019 between Transnet and the Transnet pensioners who are members of two pension funds, namely the Transnet Second Defined Benefit Fund and the Transport Pension Fund, and which in spite of the implementation of the specified settlement in 2020, has still not been implemented for members of the Passenger Rail Agency of South Africa Sub Fund, notwithstanding a court order (details furnished) to the effect, he can now indicate by what date the matter will be finalised; if not, (a) what are the reasons for the lengthy delay and (b) by what date does he envisage the delay will be addressed, with an indication of the necessary deadlines in order to prevent legal action from being taken against his department for disregarding the specified court order; if so, what are the relevant details in each case; (2) whether he will make a statement on the matter? NW4835E
Reply:
According to the information received from Transnet
(1) The settlement agreement, dated 11 December 2019, was approved in terms of a court order of 22 June 2020, and became unconditional in July 2020. It provided for members of the PRASA sub fund to receive certain lumpsums (unconditionally) and to receive certain special pension increases subject to certain rule amendments.
The pension increases have not been paid yet, but the agreement (and court order) contemplates a possible delay and provides that if the increases are made later for Transnet and SAA sub fund members, they will still be made with effect from the same date and may be made as additional lumpsums. Since the agreement does indeed contemplate a delay, it is incorrect to say that the agreement or court order have not been implemented – it is more correct to say that they are being implemented but the delay in passing the PRASA sub fund rule amendments is taking longer than the members anticipated.
This expected delay was also set out explicitly in the Class Notice that was issued in terms of the court order to educate members of the Fund about the terms of the settlement. Accordingly, the rule amendment process is part of the process of implementing the court order. For as long as it is underway there is no disregard of the court order. The process is receiving the necessary urgent attention
(2) It is noted that the Minister of Public Enterprises’ and the Minister of Finance are currently assessing the rule amendments and that once all the government processes have been adhered to and finalised, the Departments of Public Enterprises will revert to Parliament to provide a final response.