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Cape Town - Some 7 000 Transnet pensioners have died since the first steps were taken to launch a class action case against the state-owned transport company, it has emerged in figures released by Public Enterprises Minister Lynne Brown.
The class action - led by two Transnet pensioners Johan Pretorius and Johan Kruger – aims to recover R80bn which the pensioners say Transnet, the state transport company, owes them.
If the case goes ahead, it will be the biggest class action in South Africa's history.
Pensioners’ increases have been limited to 2% for over a decade, some earn as little as R200 a month while the average pensioner earns less than R3 000 a month.
Advocate Anton Alberts, a Freedom Front Plus MP who has led a spirited campaign of redress in parliament for the original 68 000 pensioners, asked the minister how many members of the Transnet Second Defined Benefit Fund (TSDBF) and the Transport Pension Fund (TPF) died in every month since April 2013 until the latest date for which figures were available.
Alberts also asked what was the average age and actuarial life expectancy of the members of each respective pension fund.
The minister reported that a total of 6 866 TSDBF pensioners had died since the class-action case was started on 26 April 2013 until the end of October 2014.
READ: 'R1 a month' for some Transnet pensioners
The TSDBPF now has just 60 138 members. The smaller TPF had 6 264 members of which 298 had died since April 26, 2013, Brown reported to Alberts.
The minister also noted that the average age of the TSDBPF pensioners was 75 years and eight months and the TPF pensioners’ was 65 years.
Alberts said the TSDBPF pensioner’s actuarial life expectancy is just eight years and three months and that of the TPF pensioners vary in the three sub funds between 13 and 14 years. Alberts remarked that there “is therefore according to Transnet’s own calculations not long to go before the number of pensioners will drastically change”.
Alberts, who has accused Transnet of trying to stall the legal processes that the pensioners are taking to seek redress, said Transnet had now appealed the class-action case and the judgment of the court of appeal in the application of Transnet for leave to appeal “is still being awaited”.
If Transnet was serious about improving the poor pensions of its own former workers, it would have made plans “a long time ago” to settle the court challenge, Alberts argued.
According to the minister 314 TSDBF pensioners died in April 2013. The fewest pensioners to die in any month was 273 in December 2013 while the highest number of 460 died in July 2014. In October 2014, 330 died. Between April 2013 and October 2014, 243 members of the Transnet Sub Fund – of the Transport Pension Fund, had died. Just two of the South African Airways Sub Fund and 53 of the Prasa Sub Fund – also sub funds of the TPF – had died.
Brown reported that the TSDBF had no active members (workers still employed and contributing to the fund), while the Transnet Sub Fund had 388 active members and 4 515 retired. The SAA Sub Fund had 295 pensioners and 87 active members while the Prasa Sub Fund had 914 pensioners and 65 active members.
In a separate question by Alberts to Brown, he asked who was paying the legal fees in the class action. Brown said the Transport Pension Fund Transnet Sub Fund and the TSDBF settled all costs “from available cash, being costs incurred by the (funds) in the court case in respect of the class action”.
Asked by Alberts whether in light of the refusal of leave to appeal for Transnet, the government would consider settling with the pensioners who formed part of the class action, Brown said: “The ministers of public enterprises and finance (the State parties) filed notices against the class action application. In this regard, Judge (Ephraim) Makgoba found that the draft particulars of claim did not disclose any claim against the State parties and that the State parties having nothing to defend in the application.”
READ: Court rejects Transnet's pension appeal bid
Before the Pretoria High Court in July Judge Makgoba granted an order to the pensioners to launch the class action.
The pensioners have argued that they have been diddled out of billions of rands through poor management of their pension funds. For example, Transnet in 2001 exchanged government bonds worth R7.7bn which earned the fund R1.2bn in interest per year in shares in M-Cell. The shares were sold in 2006 and the TSBDF’s estimated loss was over R5.4bn.
Some R800m in surplus funds, argue the pensioners, was paid over to the transport state company in 2000.
The class action - led by two Transnet pensioners Johan Pretorius and Johan Kruger – aims to recover R80bn which the pensioners say Transnet, the state transport company, owes them.
If the case goes ahead, it will be the biggest class action in South Africa's history.
Pensioners’ increases have been limited to 2% for over a decade, some earn as little as R200 a month while the average pensioner earns less than R3 000 a month.
Advocate Anton Alberts, a Freedom Front Plus MP who has led a spirited campaign of redress in parliament for the original 68 000 pensioners, asked the minister how many members of the Transnet Second Defined Benefit Fund (TSDBF) and the Transport Pension Fund (TPF) died in every month since April 2013 until the latest date for which figures were available.
Alberts also asked what was the average age and actuarial life expectancy of the members of each respective pension fund.
The minister reported that a total of 6 866 TSDBF pensioners had died since the class-action case was started on 26 April 2013 until the end of October 2014.
READ: 'R1 a month' for some Transnet pensioners
The TSDBPF now has just 60 138 members. The smaller TPF had 6 264 members of which 298 had died since April 26, 2013, Brown reported to Alberts.
The minister also noted that the average age of the TSDBPF pensioners was 75 years and eight months and the TPF pensioners’ was 65 years.
Alberts said the TSDBPF pensioner’s actuarial life expectancy is just eight years and three months and that of the TPF pensioners vary in the three sub funds between 13 and 14 years. Alberts remarked that there “is therefore according to Transnet’s own calculations not long to go before the number of pensioners will drastically change”.
Alberts, who has accused Transnet of trying to stall the legal processes that the pensioners are taking to seek redress, said Transnet had now appealed the class-action case and the judgment of the court of appeal in the application of Transnet for leave to appeal “is still being awaited”.
If Transnet was serious about improving the poor pensions of its own former workers, it would have made plans “a long time ago” to settle the court challenge, Alberts argued.
According to the minister 314 TSDBF pensioners died in April 2013. The fewest pensioners to die in any month was 273 in December 2013 while the highest number of 460 died in July 2014. In October 2014, 330 died. Between April 2013 and October 2014, 243 members of the Transnet Sub Fund – of the Transport Pension Fund, had died. Just two of the South African Airways Sub Fund and 53 of the Prasa Sub Fund – also sub funds of the TPF – had died.
Brown reported that the TSDBF had no active members (workers still employed and contributing to the fund), while the Transnet Sub Fund had 388 active members and 4 515 retired. The SAA Sub Fund had 295 pensioners and 87 active members while the Prasa Sub Fund had 914 pensioners and 65 active members.
In a separate question by Alberts to Brown, he asked who was paying the legal fees in the class action. Brown said the Transport Pension Fund Transnet Sub Fund and the TSDBF settled all costs “from available cash, being costs incurred by the (funds) in the court case in respect of the class action”.
Asked by Alberts whether in light of the refusal of leave to appeal for Transnet, the government would consider settling with the pensioners who formed part of the class action, Brown said: “The ministers of public enterprises and finance (the State parties) filed notices against the class action application. In this regard, Judge (Ephraim) Makgoba found that the draft particulars of claim did not disclose any claim against the State parties and that the State parties having nothing to defend in the application.”
READ: Court rejects Transnet's pension appeal bid
Before the Pretoria High Court in July Judge Makgoba granted an order to the pensioners to launch the class action.
The pensioners have argued that they have been diddled out of billions of rands through poor management of their pension funds. For example, Transnet in 2001 exchanged government bonds worth R7.7bn which earned the fund R1.2bn in interest per year in shares in M-Cell. The shares were sold in 2006 and the TSBDF’s estimated loss was over R5.4bn.
Some R800m in surplus funds, argue the pensioners, was paid over to the transport state company in 2000.
