(Alyssad Rivas and Paul Botes/M&G)], “I wouldn’t say that I did expect so much from Transnet. “It is painful, really,” he says, overcome by emotion. Get over 220,000 high net-worth attorney leads with email and phone numbers Menu As a widow, Rabasotho now receives 70% of the full pension payment, which amounts to R2 000 a month. Contact; South Africa . Asked about rumours that many Transnet pensioners had committed suicide, Ludick admits she entertained the thought just a month ago. Many of the pensioners have cancelled their medical aid with Transnet but a funeral policy remains top priority for some. He gets a government pension too. Transnet said the funds are governed by the Transnet Pension Fund Act, as amended, and the 2% increase is statutory and in line with the rules. This week some of the pensioners said they were pleased about the ruling although they remained concerned that the matter was still not finalised. Bread is R15 now.”, Molekoa says: “We started very badly; we were earning in those days R12 per month as a black man doing the same job as a white. Her pension helps to support her son, his wife and their four children. Transnet’s board of directors approved the payments to members of the Transnet Second Defined Benefit Fund (TSDBF) and the Transnet sub-fund of the Transport Pension Fund (TTPF) on Wednesday, 23 October. I would fix peoples’ cars to pay my water and lights and those things,” he says. But, in 2000, and already undercapitalised by R17-billion, the funds were closed to new contributors and the pension payouts grew well below inflation at just 2% a year. Tel: 0800 117 669 or +27 (0)12 319 1000/1911. In his judgment, Justice Johan Froneman said the terms of the pleaded contract, although mainly a verbal commitment, “are expressly and clearly set out and so are the parties bound by those terms”. Provisional agreement offers retirees higher annual increases and R30,000 lump sums after seven-year battle. About 67% of beneficiaries who contacted the financial sector regulator about unclaimed benefits are set to receive more than R13.7-billion from the R42bn sitting unclaimed in retirement funds. All material © Mail & Guardian Online. Employee benefits insurance savings represent personally accrued retirement capital. But Transnet was successful in obtaining an exception to the particulars of the claim that relate to an argument based on a Constitutional Court judgment, which ruled that, if government makes a commitment, you needn’t prove that a contract was created. “I was happy, they were happy. “Erwee is working with Senior Counsel Advocate Jaap Cilliers, a well-known advocate who helped over 60 000 Transnet pension beneficiaries get their pensions. Every day I sit in my pee,” she says. All playing a vital role in the workings of all the payouts and money’s within the pension fund industry. Divorce Pension Claim. In other words, if you are not entitled to a pension from one of those two funds on the relevant date, you are not entitled to benefit from the settlement. Each beneficiary will collect a bonus payment of 8.33% of their annual pension, equivalent to a 13th cheque from their respective fund. About 67,000 pensioners belonging to the Transnet Second Defined Benefit Fund (TSDBF) and the Transnet Sub-Fund of the Transport Pension Fund (TTPF) are set to benefit by the end of April. In total, more than 17 million people in South … Image: File: Reuters. Morar asked to settle with the state and pay back the profit he made on an irregular tender, A former employee allegedly ran an intricate scam to steal 8700 phones from the cellular giant, Funds will be diverted from the higher education department to help cover the NSFAS shortfall, The installation ceremony of Professor Zeblon Vilakazi has been postponed as student protests escalate and a by-stander is killed, All people living in Southern Africa need equitable vaccine access. In 2014, the pensioners and their legal team successfully obtained a court order that allowed for the case to go ahead as a class action. At the time, R17.1-billion was owed to the Transnet pension fund, but only R10-billion was paid by Transnet, the documents show. The first cheque was R100. 62, 1990 of Schedule 2 to, the Legal Succession to the South African Transport Services Act, 1989, are payable out of the revenue of the employer, shall continue to be payable out of such revenue. Some pensioners got only R1 a month after deductions such as contributions to the Transmed Medical Fund. His R4 300 a month payment is just enough to cover his funeral policy, groceries for himself and his two grown children and municipal costs — sometimes. Pieter Olivier and Margaret Ludick (below) would like to buy their house – or retire to Henties Bay. But that recognition has faded with every monthly pension cheque he receives. Khaya Sithole: Can Zondo deliver the goods in time? All material © Mail & Guardian Online. “People weren’t supporting us. A hard-won Constitutional Court victory for former Transnet employees has brought the group one step closer in its bid to claim about R100-billion in pension monies owed to them by the state-owned enterprise. With a DB pension, you may have an option to begin receiving your monthly pension payments if you are over the age of 55. check Access to award-winning solutions for members to make better informed decisions. All the participating employers in the TRF are public entities that are subject to the Public Finance Management Act. One of the sticking points was the pension funds’ offer to use an R4.5 billion actuarial surplus to top up the fund. Illinois' adjusted net pension liability among its five pension plans will total $317 billion for the current year, a 19% rise over 2020. CAPE TOWN - Thousands of Transnet pensioners scored a major victory yesterday when the Constitutional Court gave them the go-ahead to recover billions of rands from the freight, rail and logistics giant as well as the Transnet Second Defined Pension.. [Kgabatsetse John Mofokeng wants to enjoy what is rightfully his before he dies. The feisty Rabasotho and her friends mutter among themselves as they watch the men slowly make their way into the house. “It’s very dangerous — a lot of my mates they lost legs and arms and that. There must be a reason that the Committee was not aware of that its original resolutions were not being implemented. A notification on Motana’s phone shows she received just R941.11 last month from the pension fund. You get paid less, he gets more — almost three times more than you get. These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. “Let me enjoy my fruit. He said the FF+ had now requested Gordhan to meet the legal team soon in the hope of negotiating a quick and fair settlement. “They have their own lives,” she says, adding that her one son does in fact work. Bridging finance is a short term micro loan that is secured against a future income for example if you are waiting on pension/provident package payouts. Transnet Pension Fund is a Public Pension located in Braamfontein South Africa, Africa. Freedom Front Plus will take Transnet to court over pension funds The FF Plus on Friday sent legal letters to Transnet for information about its two pension funds. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription. “When I’m able, I give the municipality R1 000. It consists of 52 000 members. One of the few assets she has is her late husband’s Spoornet (now called Transnet Freight Rail) branded watch, which she wears, the strap secured by an elastic band. Also available is the mine pension fund and joint pension funds; there is also an engineering industry pension fund. Eskom Inquiry: Pension Fund hearing about Molefe R30 million payout. I was just waiting to get what they offer me. The judgment handed down last week has cleared the way for the pensioners to appeal. “However, in an effort to ensure that our pensioners’ incomes track the rising cost of living, the funds have been supplementing the guaranteed statutory annual increases with a 13th cheque every year and ad hoc bonus payments where possible,” says Peet Maritz, the principal officer of the funds. The government at the time promised that employee pension fund benefits would not be changed in any way and undertook to ensure that the pay-outs would keep up with inflation. This suggests that, on average, each of the 80 000 pensioners is owed R1.25-million by the fund. Material may not be published or reproduced in any form without prior written permission. This is also the case for the about 80 000 pensioners who, in 1990, were moved to two Transnet pension funds (based on when they retired), when Transnet became the legal successor of South African Transport Services. Joseph Molekoa (84) takes a seat inside. In principle, foreigners and also Swiss nationals can receive payouts from these pension funds if they leave Switzerland. “I don’t survive. You can only join a pension fund through a company that employs you. The fund’s disappointing pay-outs — aggravated by allegations of mismanagement — are the subject of a legal challenge, which claims the legacy debt owed to pensioners (calculated at compound interest of 12% a year) has grown to an estimated R100-billion. Each lump sum payment must be made by the relevant fund less such tax as the relevant fund is obliged to deduct or withhold in respect of each Pensioner. However, a distinction is made between the mandatory portion and the extra-mandatory portion. You know, that’s why I say those people are alright; I guarantee them.”. But Transnet then successfully obtained an exception to a key part of the claim, which said that, if the government makes a commitment, you needn’t prove that a contract was created. “It is their money,” he says. */ Two separate $750 payments have made to households and two more payments of $250 each will be made recognising the ongoing impact of the Coronavirus pandemic. a) Essentially, the benefit enhancements contemplated by the settlement will only be paid to the pensioners of the Transport Pension Fund and the Transnet Second Defined Benefit Fund at the time the benefit enhancements are provided. Leaving Switzerland and receiving pension fund payouts. A parliamentary process came to the conclusion in 2010 that money should be paid into the funds, but this never materialised. A cold front has rolled in and the sky over Randfontein looks ominous. “I was a leading shunter there. INTERVIEW | Audi design boss Marc Lichte talks about the E-Tron GT. How long does this take, because I am really in debt and didn't think the company that I sacrificed my life for would hold my pension fund documents for one month before releasing it. He can go stay in a small flat or whatever. According to Department of Public Enterprise, Transnet provided an R10bn loan stock (T11 bond) to the pension fund. Still no board for NYDA, no word on gender violence fund, SOEs are ‘in a very difficult space’ as Covid-19 adds to their woes, Molefe blames Ramaphosa for Eskom’s woes in statement to Zondo commission, Ithala fails to act against board chairperson over PPE scandal, Vodacom swindled out of more than R24m worth of iPhones, Cabinet approves additional funding for student financial aid scheme, Wits VC pleads with Nzimande for guidance, SADC’s silence on access to Covid-19 vaccines is too loud, The Covid-19 inoculation target may be revised, says Mkhize. Chairperson: Ms D Rantho (ANC) Audio Eskom Pension and Provident Fund 2 Eskom Pension and Provident Fund 1. Documents Eskom Provident and Pension Fund (EPPF) submission on Retirement Payout: Brian Molefe Transcript 20 October 2017 Anton Alberts, the Freedom Front Plus’s (FF+) chairperson and parliamentary spokesperson on transport, who has lobbied on behalf of the pensioners for years, said in a statement that last month he had informed Public Enterprises Minister Pravin Gordhan of the significant effect such a ruling would have on Transnet and the state. “In the water are all salt crystals and all over your body you are white, white. [Alina Rabasotho would like an indoor toilet. The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. Pension plans with a monthly payout are a great source of security in retirement, as they typically continue until death. But on one fateful day in 1989, he found himself with a broken back under a heap of railroad trucks. Any funds available from my Fathers Transnet Pension fund 344847L0000. The pensioners’ class was certified on July 31, 2014. The Government Employees Pension Fund. If their pensions were better and up-to-date, then “these problems wouldn’t be that bad, honestly”. Ludick says pensioners could blame Transnet for their circumstances. Carr said Transnet pensioners were surviving on paltry pension payouts, with the average payment being R3 000 a month… The fund will have to ensure compliance by the fund with the PFA at ‘sub-fund’ level. It has been neatly stored away in an envelope for the past 17 years and looks as if it was fresh off the printing press. Reply. the Transnet Pension Fund Amendment Act, 2007, existed as the Transnet Pension Fund shall continue to exist as a juristic person under the name of the Transport Pension Fund. The court gave Transnet and the pension funds 20 days to respond to the claim, which is estimated at R80 billion. Olivier’s incident cost him his hearing and so Ludick does most of the talking. Of the more than R10-billion needed, around R2.8-billion is required for initial working capital. He was 18 years old and fresh out of high school. The legal battle has dragged on for years and more than 22 000 pensioners have died. I resigned on 6/12/13. “I wet myself every day because there is no place we can go to the toilet. In April 2013, the legal team took up the case pro bono and the challenge is ongoing. SOEs are ‘in a very difficult space’ as Covid-19 adds to their woes, Molefe blames Ramaphosa for Eskom’s woes in statement to Zondo commission, Ithala fails to act against board chairperson over PPE scandal, Vodacom swindled out of more than R24m worth of iPhones, Cabinet approves additional funding for student financial aid scheme, Wits VC pleads with Nzimande for guidance, SADC’s silence on access to Covid-19 vaccines is too loud, The Covid-19 inoculation target may be revised, says Mkhize. He was a clerk for 35 years. Transnet pensioners settlement offers little, late justice Provisional agreement offers retirees higher annual increases and R30,000 lump sums after seven-year battle BL PREMIUM So that is, you take the coaches, you put them all together and make a train up, and check that everything is right. (link is external) can be contacted at. Mofokeng’s daughter, who graduated with a law degree from Unisa, worked before she became ill. “Transnet was in financial dire straits since its inception, and it gave a lot of packages to people,” says Anton Alberts, a Freedom Front Plus MP who has been fighting for the pensioners for years. These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever. But the fund was found to be undercapitalised by R17-billion at the time and this legacy debt became a financial burden on Transnet. “If I can get three months’ rent in advance, then I can go to the hospital and have my operation.”. For Mofokeng, it is his largest single expense every month. But even if the pensioners’ claim is ultimately successful, the state will not be able to afford the R100-billion. [Pieter Olivier and Margaret Ludick would like to buy their house – or retire to Henties Bay. A hard-won Constitutional Court victory for former Transnet employees has brought the group one step closer in its bid to claim about R100-billion in pension monies owed to … Ngobene received R1 007. Over 42 years, Mofokeng worked his way up from a ticket examiner at Park Station to a train yard official in Pretoria West. You can just imagine. (Alyssad Rivas and Paul Botes/M&G)], Ludick has been diagnosed with breast cancer but won’t go in for surgery for fear that Olivier will be unable to cover the rent alone. The unwieldy technical term for this is ‘uncrystallised funds pension lump sums’ – or UFPLS. The Registrar of Pension funds provides a central database on the FSCA website to assist members of the public to ascertain through the search engine if there are any unclaimed benefits due to them. Transnet Pension Funds Act, 1990 • The assets and liabilities of an umbrella fund relating to members employed or formerly employed by specific participating employers will have to be treated separately from those relating to other members. The pension is means-tested, provided to those with income and assets below a certain threshold. In some cases, they are even transferable to a spouse. Her husband worked for the railway for 28 years but, after a stroke, he was placed on early retirement. The deficit in the funds was first discovered by an actuarial assessment conducted just before Transnet was created. Malehloma on October 18, 2020 at 8:33 am My father went home with South African pension since 1974 he was working at Railway Braamfontein he didn’t apply for his Revised pension ,His name was Rafolatsane piet. I cannot say that, now, okay, when I die my children will enjoy, but then they didn’t work for it. According to Section 12(2) of the Transnet Pension Fund Act, Transnet guaranteed the financial obligations of the TSDBF, and the government guaranteed the obligations of Transnet to the TSDBF. They're 'uncrystallised' because you haven't moved the money out of the pot and into another product, such as income drawdown or an annuity. The words “certificate for long service” and the number 42 are embossed in gold on the otherwise white document Kgaba-tsetse John Mofokeng holds proudly in his hands. In 2000, the funds were closed to new contributors and, in accordance with the fund rules, the pension pay-outs grow at just 2% a year. It seemed as if Transnet was trying to “pass the buck” to the Fund. Mofokeng’s first and only job was with the South African Railways and Harbours, which was later restructured to create Transnet. The ruling brought to an end an ongoing legal wrangle between Transnet, the two pension funds and the approximately 60000 former workers who took the company to court in 2013 over pension payouts. This old mine housing complex is where Pieter Olivier and his partner of 17 years, Margaret Ludick, live. Tel: 0800 117 669 or +27 (0)12 319 1000/1911 Fax: +27 (0)12 326 2507 E-mail: Enquiries@gepf.co.za Postal address: Private Bag X63, Pretoria, 0001 Regional and satellite offices contact list Morar asked to settle with the state and pay back the profit he made on an irregular tender, A former employee allegedly ran an intricate scam to steal 8700 phones from the cellular giant, Funds will be diverted from the higher education department to help cover the NSFAS shortfall, The installation ceremony of Professor Zeblon Vilakazi has been postponed as student protests escalate and a by-stander is killed, All people living in Southern Africa need equitable vaccine access. You can leave your money in your current pension fund and take lump sums when you need to. “Clientele — they did bury my wife with dignity. In 2014, the pensioners and their legal team successfully obtained a court order allowing for the case to go ahead as a class action against Transnet. And, when I want to cook something, it’s a paraffin stove. The case represents about 60 000 pensioners, many of whom have found themselves destitute because their Transnet pensions have not kept up with the cost of living. Rabasotho wants only one thing: “My house, it is incomplete. Both Olivier and Ludick were in accidents, which were seven years apart. But when time went on, I saw, no, this money that I’m getting here, it’s very little.”. The legal team claims the legacy debt owed to pensioners (calculated at compound interest of 12% a year) has grown to an estimated R100-billion. Ngobene received R1 007. Tax year: Last week the Constitutional Court granted leave to appeal the ruling, which upheld this exception and, the judgment noted, the appeal had reasonable prospects of success. Time is short and our people are dying, so the regional body should act fast, The health minister said supply may be constrained but the department was finalising more vaccine deals, please consider taking out a subscription, Molefe shifts blame to ex-Transnet finance boss Singh, The middle class needs to up its life and disability cover, Yet another lacklustre Sona by Ramaphosa — political analysts. “Then we can buy this house. “For all the times that you worked hard, the long, long hours, the times you worked 18 hours or even 24 hours, I feel it’s an insult what they have done to us.”. Transnet Pension Fund recognised the changing needs of the company and the Fund's members and pensioners. Some action was initially taken by Transnet to fulfil its debt obligation to the pension fund, but this put a strain on the parastatal. The VCPG mandated Erwee Attorneys from Musina to fight on their behalf. Many of the recipes come from a worn copy of Kook en Geniet. The Pension Funds Amendment Act, 2007, introduced the clean-break principle. Well, when I cannot afford to, like this month, I only paid R700. They said, ‘you are a good worker’’. It makes you warm all over, it feels like something moving into your body. Any gains were reversed by questionable management decisions, such as selling assets that belonged to the fund, which resulted in a loss. If Olivier came into even more money than that, they will hotfoot it to Henties Bay, a small town in western Namibia, where an old tin mine has filled with salt water. “Transnet are just waiting, just to decrease the number.”. He started work on March 11 1958. At the time, the government promised verbally that employee pension fund benefits would not be changed and promised the payouts would keep up with inflation. Rabasotho is the widow of a Transnet pensioner. “That’s crazy,” says Alberts. The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. We can buy a proper bakkie and trailer again so we can be more mobile with our stuff.”. Reply. Johannesburg - Former Transnet employees packed the North Gauteng High Court on Tuesday. I feel I’m really tired.”, Olivier says he enjoyed his time at Transnet but he sees the pension as an insult. Time is short and our people are dying, so the regional body should act fast, The health minister said supply may be constrained but the department was finalising more vaccine deals, please consider taking out a subscription, Molefe shifts blame to ex-Transnet finance boss Singh, Yet another lacklustre Sona by Ramaphosa — political analysts. In 2015, summonses were served on both pension funds and Transnet. Khaya Sithole: Can Zondo deliver the goods in time? PRETORIA - Former Transnet employees packed the North Gauteng High Court on Tuesday, to take up a grievance with the railway giant over its pension fund payouts. Each beneficiary will collect a bonus payment of 8.33% of their annual pension, equivalent to a 13th cheque from their respective fund. The TRF is governed by the Transnet Pension Fund Act and its rules. A crucifix hangs on the wall above them. “It wasn’t actually money you could use. The rules have the force of legislation.

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