TRANSNET PENSION FUND ACT
AMENDMENT
Private Members 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.
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.
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.
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.
Signature:
..
Date:
.