After the FF Plus’s request in parliament last month that the deputy president, Cyril Ramaphosa, will take steps to protect the public service pension funds, it seems like the ball was set rolling do to just that. This can be gleaned from the minister of finance, Malusi Gigaba’s, response to recent parliamentary questions by the FF Plus.
Some more good news is that the public service pension fund has been fully funded and will meet all its obligations towards pensioners, as is evident from the Minister’s response to a question posed by adv. Anton Alberts, chairperson of the FF Plus. (Please see the questions and answers attached.)
In his answer to a question regarding the steps taken to protect the pension funds that are under the control of the government and government-controlled business enterprises, the minister said that the National Treasury is already investigating the matter of putting all the public service pension funds under the control of the Pension Funds Act.
Adv. Alberts says that this means that members will have access to the pension fund ombudsman that will be able to intervene and investigate any irregularities free of charge so as to protect the members’ interests.
“The FF Plus will keep pressing the matter and we are hopeful that the necessary steps will be implemented soon. We are requesting that all public service pension funds as well as all other funds, including the Transnet funds, fall under the Pension Funds Act so that the members of these funds can have access to the pension fund ombudsman.
“The fact that the pension fund ombudsman did not have jurisdiction over the two plundered Transnet funds was the real problem and now these two funds are entangled in a legal battle with Transnet.
“All the pension fund members will be able to breathe a sigh of relief when these steps are implemented. The FF Plus will do everything in its power to ensure that it happens soon,” says adv. Alberts.
Contact numbers: 082 391 3117 / 083 419 5403
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NUMBER: 1985 [NW2197E]
DATE OF PUBLICATION: 23 JUNE 2017
1985. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:†
What steps he is taking to protect pension funds which are controlled by the State and State-Owned Enterprises against abuse and to ensure that pensioners receive their rightful pension, especially seen in view of those members of the Government Employees Pension Fund who do not have access to the Pension Funds Adjudicator?
NW2197E
REPLY:
Government has since 2011 stepped up its retirement reform programme and the aim of such reform is to ensure that we maximise and protect the interest of all retirement funds and their members. The reform aims to protect the funds and their members from high and opaque charges, poor governance and poor investment decisions or approaches that can benefit more the industry and not members. This process is ongoing and impacts on both State and private retirement funds.
In the 2013 Budget, as part of our retirement reform proposals, the National Treasury indicated the importance of bringing all public sector retirement funds under the purview of the Pension Funds Act (“PFA”), subject to financial feasibility. This approach would enable uniform regulation and supervision under the Financial Services Board, and access to free dispute resolution institutions like the Pension Funds Adjudicator for members of such public sector retirement funds.
There are a few State pension funds that fall outside of the PFA, these are the Government Employees Pension Fund (“GEPF”), Transport Pension Fund, Transnet Retirement Fund, Transnet Second Defined Benefit Fund, Post Office Pension Fund and Telkom Pension Fund. Of these, only the GEPF falls directly under the Ministry of Finance. The other public sector funds fall under the ambit of the Ministers of Transport, Telecommunications and Postal Services, and Public Enterprises, even though the Minister of Finance does have an indirect role regarding any decisions that may have financial implications. However, all these State funds that are not covered by the PFA generally have a Board (of trustees), whose duty it is to protect the members and the fund.
With the exception of GEPF and Transnet, Telkom and the Post Office have also established Defined Contribution retirement funds that are registered under the PFA, while the ‘old’ (Defined Benefit) funds are closed to new members. This means that the main challenge with protecting retirement funds remains with funds that fall outside the PFA.
NATIONAL ASSEMBLY
QUESTION FOR WRITTEN REPLY
QUESTION NUMBER: 1983 [NW2195E]
DATE OF PUBLICATION: 23 JUNE 2017
1983. Adv A de W Alberts (FF Plus) to ask the Minister of Finance:†
Whether the Government Employees Pension Fund has enough money to fulfill its obligations in respect of its existing and future members; if not, (a) why not and (b) what are the full details of the steps he will take to ensure that the Government Employees Pension Fund is properly funded; if so, what are the relevant details? NW2195E
REPLY:
The Fund is currently fully funded.
There is therefore no action required from the Minister.
;
