TRANSNET PENSION FUND ACT

AMENDMENT BILL

 

 

 

 

 

 

 

 

 

 

 

 

Private Member’s Bill

 

Submitted in terms of Section 73 (2)

 

Read with Section 76 (1) of the Constitution

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

MEMORANDUM

 

 

 

Notice is hereby given of the introduction of a Private Members’ Bill in terms of Section 73(2) read with Section 76(1) of the Constitution. In terms of rule 234 (read with rule 230(1)), a member must submit to the Speaker a memorandum which:

 

(a)     sets out particulars of the proposed legislation

(b)     explains the objects of the proposed legislation; and

(c)     states whether the proposed legislation will have financial implications for the State and, if so, whether those implications may be a determining factor when the proposed legislation is considered.

 

The Honourable Speaker is requested to deal with this Bill in terms of Section 235 of the National Assembly Rules.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A.      PARTICULARS OF PROPOSED LEGISLATION

 

 

The following amendments to the Transnet Pension Fund Act (Act 62 of 1990) as amended by the Transnet Pension Fund Amendment Act (Act 41 of 2000) [hereinafter referred to as “the Act”] are proposed:

 

AMENDMENTS TO the ACT

That section 24 be amended by the substitution for section 24 of the following paragraph:

 

The pension received by a pensioner shall be increased by [2%] a percentage equal to or greater than the increase in the consumer price index of the afore going financial year, compounded annually, for each completed year in respect of which the pension has been or is received: Provided in the case of a widow or widower or dependant pensioner, the [2%] inflation-related enhancement of the pension shall be calculated from the date on which the pension first became payable to the original pensioner.

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

B.      THE OBJECTS OF THE PROPOSED LEGISLATION

 

The proposed amendment is intended to safeguard the income-levels of members of the Transnet Second Defined Pension Fund and to prevent their progressive impoverishment as has occurred in the period 2002 to 2007 during which no more than the statutory 2% in annual increases were awarded.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

C.      FINANCIAL IMPLICATIONS

 

 

Since the selling off of assets in the 2006/2007 financial year yielded results that have restored the funding levels of the pension fund, no cost implications to the state are envisaged.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name of Member: Karel Minnie MP

 

Signature:……………………………………………………………..

 

Date: ………………………………………………………………….