Transnet pensioners consider settlement offer
Impoverished Transnet pensioners are considering a new settlement offer in the class action brought against the government and Transnet for allegedly plundering the Second Defined Benefit Fund, Beeld reports.
The law firm representing pensioners – Geyser & Coetzee Attorneys – published the latest offer, which includes a 13% increase within 60 days, followed by increases of 9% (2020) and 6% (2021).
A bonus of R10 000 would be payable immediately, with a repeat payment in 2021.
The lawyers advised the pensioners that the settlement offer amounts to 90.9% of the guaranteed pension they would have received if the fund had kept its promises.
From 2022, the increases would aim for 70% of CPI, although this is not guaranteed or capped.
Transnet’s condition for the settlement is a consolidation of the Second Defined Benefit fund with another Transnet pension fund to ensure the sustainability of the fund.
Only about half of the Second Defined Benefit Members (50 000) that started with the legal challenge are still alive.
Article disclaimer: While we have made every effort to ensure the accuracy of this article, it is not intended to provide final legal advice as facts and situations will differ from case to case, and therefore specific legal advice should be sought with a lawyer.