Transnet pensioners get R253m in bonuses

Transnet's Durban container port. File picture: Simphiwe Mbokazi

Transnet's Durban container port. File picture: Simphiwe Mbokazi

Published Oct 23, 2014

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Cape Town - Transnet pensioners are to receive a total of R253 million in bonus payouts, the parastatal announced yesterday, just as the destitute pensioners prepare to file a class action suit against their former employer.

Transnet chief executive Brian Molefe sent out a statement yesterday saying beneficiaries of the two pension funds would receive “13th cheques” in November with their share of hundreds of millions in payments.

The bonuses will come as a small relief to many who have been struggling to make ends meet.

It will be a payout of 8.33 percent of their annual individual pension, adding up to R178m in bonuses.

Transnet’s board of directors has also approved an ex gratia, or voluntary payout, totalling R75m to “qualifying beneficiaries and pensioners of the two funds”.

“Transnet’s ex gratia payments to pensioners prioritises those with long service and therefore limited likelihood of other incom, as well as beneficiaries of retired black employees,” Molefe’s statement said.

Annual increases of 2 percent – well below inflation – have left many of Transnet’s 66 000 pensioners destitute.

Two fund members, Johan Kruger and Johan Pretorius, took their plight to the North Gauteng High Court.

In early August, the court ruled that the pair could institute a class action suit against the parastatal.

Pensioners allege that up to R80 billion is owed to the two Transnet pension funds.

Wynanda Coetzee, the attorney acting on behalf of the two pensioners, said that nearly half of Transnet pensioners – most of whom are over 70 – earn less than the state old-age grant, which is R1 350 a month.

After their medical scheme payments were deducted, some were left with R1 net pension.

Between the cost of living and the accumulating medical expenses attached to old age, Coetzee said many were completely reliant on their families and had been denied a dignified retirement.

Some had even committed suicide.

However, Molefe’s statement said Transnet remained committed to keeping pensioners’ heads above water.

“Transnet and the two funds have paid a combined R2.3bn in ad hoc and ex gratia bonuses to beneficiaries and pensioners since 2010.

“In addition to ensuring that our pensioners’ incomes track the rising cost of living by supplementing the guaranteed statutory annual increases, the payments confirm Transnet and the funds’ resolve and success in strengthening the financial positions of the funds.”

The ex gratia payments are due to be made on November 7 through Metropolitan Retirement Administrators, while the bonuses will be paid on November 21.

Any queries can be directed to the administrators on 011 587 8000. - Cape Argus

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