Trustees of the Transnet Second Defined Benefit Fund, which is locked in an R100bn class action against state-owned logistics company, have in principle agreed to a settlement offer, Beeld reports.

However, the settlement still has to be approved by Transnet’s board and get the green light from Public Enterprises Minister Pravin Gordhan before the rules of the fund can be amended to remove the 2% increase cap that has eroded the purchasing power of pensioners over two decades.

As Legalbrief Today reported previously, the proposed settlement includes three annual bonus payments of R10 000 and set increases for three years after which the fund would target increases at 70% of inflation.

The lawyers acting on behalf of the pensioners in the class action, Geyser & Coetzee Attorneys, said they had met representatives from Transnet to communicate the decision to proceed with the settlement process.

A complex process needs to be followed before the final settlement is handed to the court for approval.

It is estimated the settlement would cost Transnet roughly R1.5bn over the next three years.

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