FF Plus sets the ball rolling to protect public service pension funds

15 June 2017  

Deputy President Cyril Ramaphosa has undertaken to consider the recommendation of the FF Plus that public service pension funds need to be protected against plundering by implementing legislative mechanisms, says adv. Anton Alberts, chairperson of the FF Plus.

Yesterday in parliament, adv. Alberts painted a picture of the problems concerning the public pension funds for the deputy president. Adv. Alberts also explained that this picture makes it clear that pensioners have reason to fear that their funds might get plundered, just like what happened with the Transnet funds.

According to adv. Alberts, the government’s pension funds are not subject to the Pension Funds Act and they are also not protected by a pension fund ombudsman as is the case with private funds.

Adv. Alberts explained to deputy president Ramaphosa that this means that public service pensioners have to take legal action if there are any problems with their funds. That is an expensive and lengthy process, especially for people who are already struggling financially.

Adv. Alberts referred to the situation at Transnet in particular as those funds have been plundered to such an extent that pensioners now have to live on an average pension of only R2 500 per month, which is less than the basic minimum wage.

Deputy President Ramaphosa said that the recommendation is positive and a good idea and then he asked that adv. Alberts submit a written proposal on the matter so that it can be evaluated properly. 

He also said that it is important that pensioners have the assurance that their funds are being correctly administrated and protected. He also said that the amount of R2 500 that Transnet pensioners are currently receiving needs to be investigated in terms of the Transnet fund’s own provisions. 

“The FF Plus is happy with the deputy president’s response. We are convinced that he realises the seriousness of the matter and that he will consider the written proposal favourably so as to benefit every person that is currently dependent on a public pension fund as well as every person that may be dependent on these funds in the future.

“Should the recommendation not be accepted, the FF Plus will attempt to change the law with a private member’s bill,” says adv. Alberts.

Issued by Anton Alberts, FF Plus chairperson, 15 June 2017