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Cape Town - A rule amendment to two Transnet pension funds to provide for increases above the statutory 2% had been approved, Public Enterprises Minister Lynne Brown has told MPs.
Anton Alberts, a Freedom Front Plus MP, asked in a written question what was the state of affairs "regarding the amendment of the statutory limitation of a 2% annual increase on pensions paid to members of the Transnet Second Defined Benefit Fund and the Transport Pension Fund in order to make annual increases above the limitation possible".
He also asked when the process would be finalised.
Brown said a rule amendment to this effect had been approved by the board of trustees "subject to affordability". The proposed rule amendments had also been approved by the Transnet board of directors.
"The matter is still in progress and consultations between the department of public enterprises and national treasury relating to the proposed rule amendments are currently underway," she said.
"The process will be finalised once the ongoing consultations have been concluded and there is concurrence between the Minister of Finance and myself," said Minister Brown.
Fin24 has previously reported that some of the more than 60 000 pensioners in the two funds earned as little as R200 a month and years of 2% increases had reduced their purchasing power considerably.
