About 60 000 Transnet pensioners have pinned their hopes on the Constitutional Court as they seek to proceed with a class action to seek billions from two pension funds. A TimesLIVE report notes that yesterday, the court heard their appeal against a Gauteng High Court (Pretoria) order from last year. Transnet pension fund recipients brought a lawsuit against the Transport Pension Fund and the Transnet Second Defined Benefit Fund and Transnet in the High Court last year.

The pensioners wanted the High Court to declare that the pension funds and Transnet had broken a ‘promise’ made in 1989 before the SA Transport Services (SATS) became Transnet. The promise was that the practice of annually increasing members’ pensions by at least 70% of the rate of inflation would continue.

The pensioners claim that since 2003‚ the funds’ annual increase to their pension was significantly lower than what they contend was promised. They want Transnet and the pension funds to pay the arrear increases to the pensioners with interest.

Transnet and the pension funds raised objections to this claim, saying that there was a failure to identify the terms of the promise made by Transnet. The High Court agreed with Transnet and declined the pensioners’ case to continue on that claim.

Wim Trengove SC‚ for the pensioners‚ argued before the Constitutional Court this week that: ‘The High Court was incorrect in suggesting that the (pensioners) should have given greater particularity of their claim. The promise was made to all employees of Transnet and members of the pension funds at the time. There cannot be ambiguity on what our case is.’

The court reserved judgment.

Full TimesLIVE report