File Image: Brian Molefe

CAPE TOWN - The Chief Executive of the Pension Fund, Sibusiso Luthuli on Friday told the Portfolio Committee on Public Enterprises that in calculating early retirement, various factors such as CEO’s pensionable emoluments, length of service, early retirement penalties, age, gender and marital status were considered.

Luthuli further confidently expressed that Eskom understands the rules of the Pension Fund and how these rules are implemented for the member exiting the company. 

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According committee's statement, as per Luthuli's presentation, Molefe's pension calculation contemplated the following:

1. Had Molefe actually retired at the age of 63 years - with a start date of September 2015 - he would have been entitled to pension calculated with reference to 172 months’ actual pensionable service;

2. At the time of his retirement, Molefe had approximately 16 months’ actual pensionable service;

3. In order for the Fund to provide a benefit as if Molefe had retired at the age of 63 years, Eskom had to purchase 156 months’ additional pensionable services; and

4. In order to fund Molefe’s pension as if he had retired at the age of 63 years and had pensionable service of 172 months, it was necessary for Eskom to make payment to the Fund of an amount of R30.1m.

Luthuli also told the Committee that it was not the first time that Eskom had bought additional benefits for its employees.

ALSO READ: Brian Molefe's R30 million pension fund under scrutiny

Acting Chairperson, Zukiswa Rantho said, "I am worried about the Eskom Pension Fund because it looks like it will work for the executives but not for the lay person at Eskom. Eskom is an SOE and gets the money from the government. I am concerned about the manner in which funds are being handled. The Fund must look at the rules and check what you have learnt from this process and maybe there are things that you’ve learnt".

- BUSINESS REPORT ONLINE