Transnet Pension Fund Act, 1990

Act 62 of 1990

This is the latest version of this Act.

Citation

Act 62 of 1990

Date

Language

English

Type

Act

Taxonomies

Transnet Pension Fund Act, 1990

Act 62 of 1990

Published in Government Gazette 12562 on 29 June 1990
Assented to on 21 June 1990
Commenced on 1 October 1990 by Transnet Pension Fund Act, 1990: Commencement
[This is the version of this document from 1 September 2024.]

[Amended by Transnet Limited Amendment Act, 1991 (Act 52 of 1991) on 22 May 1991]
[Amended by Transnet Pension Funds Amendment Act, 2000 (Act 41 of 2000) on 1 November 2000]
[Amended by Transnet Pension Fund Amendment Act, 2007 (Act 6 of 2007) on 11 November 2005]
[Amended by Pension Funds Amendment Act, 2024 (Act 31 of 2024) on 1 September 2024]

(English text signed by the State President.)ACTTo make provision for the disestablishment of the pension fund referred to in section 2 of the Railways and Harbours Pensions Act, 1971, and the pension fund referred to in section 2 of the Railways and Harbours Pensions for Non-Whites Act, 1974; for the establishment of a pension fund for the employees of Transnet Limited and certain other companies; and for incidental matters.BE IT ENACTED by the State President and the Parliament of the Republic of South Africa, as follows:—

1. Definitions

In this Act, unless the context indicates otherwise—"actuary" means an actuary who is a fellow of an institute, faculty, society or chapter of actuaries approved by the Minister of Finance;[definition of "actuary" inserted by section 1(a) of Act 6 of 2007]"alternative employer" means—(a)the State;(b)a national public entity as defined in section 1 of the Public Finance Management Act, 1999 (Act No. 1 of 1999);(c)a company, the shares in which were transferred from Transnet to the State or to an entity contemplated in paragraph (b) or (d), or an entity in which such company owns one or more shares; or(d)any other company in which the State or an entity contemplated in paragraph (b) owns one or more shares:Provided that after 11 November 2005—(i)the State or any entity contemplated in paragraph (b) or (d) acquired a business contemplated in section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995), from Transnet or acquired shares in a company from Transnet;(ii)at the date of such transaction, the business or company had in its employ a person who was a member of any fund established in terms of this Act; and(iii)the State or any entity contemplated in paragraph (b), (c) or (d), as the case may be, is accepted as an alternative employer for the purposes of this Act in terms of an agreement between Transnet and the Minister;[definition of "alternative employer" inserted by section 1(a) of Act 6 of 2007]"alternative group of employers" means a principal employer other than Transnet and an alternative employer in which the principal employer holds shares: Provided that if more than one principal employer owns shares in an alternative employer, that alternative employer falls within the alternative group of employers of the principal employer that owns the most shares in that alternative employer;[definition of "alternative group of employers" inserted by section 1(a) of Act 6 of 2007]"Company" [definition of "Company" deleted by section 1(b) of Act 6 of 2007]"dependent pensioner", in relation to a designated retirement fund, means a person who is entitled to a pension paid by that fund as a result of the membership of that fund of a deceased member or a deceased pensioner;[definition of "dependent pensioner" inserted by section 1(c) of Act 6 of 2007 and substituted by section 11(a) of Act 31 of 2024]"designated retirement fund" means any of the Transport Pension Fund, the Transnet Retirement Fund and the Transnet Second Defined Benefit Fund and any other pension fund established in terms of section 14A of this Act;[definition of "designated retirement fund" inserted by section 11(b) of Act 31 of 2024]"Divorce Act" means the Divorce Act, 1979 (Act No. 70 of 1979);[definition of "Divorce Act" inserted by section 11(c) of Act 31 of 2024]“employer” means an employer within the Transnet group of employers or an employer within an alternative group of employers;[definition of “employer” substituted by section 39(b) of Act 52 of 1991 and by section 1(d) of Act 6 of 2007]"Financial Sector Conduct Authority" means the Financial Sector Conduct Authority established in terms of section 56 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017);[definition of "Financial Sector Conduct Authority" inserted by section 11(d) of Act 31 of 2024]“Fund” [definition of “Fund” substituted by section 39(a) of Act 52 of 1991 and deleted by section 1(e) of Act 6 of 2007]"general rules" means the rules contemplated in section 4A(9) and excludes the special rules;[definition of "general rules" inserted by section 1(f) of Act 6 of 2007]"Income Tax Act" means the Income Tax Act, 1962 (Act No. 58 of 1962;[definition of "Income Tax Act" inserted by section 11(e) of Act 31 of 2024]"member’s’ interest in the retirement component" has the meaning as defined in section 1(1) of the Income Tax Act;[definition of "member’s’ interest in the retirement component" inserted by section 11(e) of Act 31 of 2024]"member’s interest in the savings component" has the meaning as defined in section 1(1) of the Income Tax Act;[definition of "member’s interest in the savings component" inserted by section 11(e) of Act 31 of 2024]"member’s interest in the vested component" has the meaning as defined in section 1(1) of the Income Tax Act;[definition of "member’s interest in the vested component" inserted by section 11(e) of Act 31 of 2024]“Minister” means the shareholder Minister responsible for Transnet;[definition of “Minister” substituted by section 1(g) of Act 6 of 2007]"pensioner", in relation to a designated retirement fund, means a person who is entitled to a pension paid by that fund resulting from his or her membership of that fund;[definition of "pensioner" inserted by section 1(h) of Act 6 of 2007 and substituted by section 11(f) of Act 31 of 2024]"pension interest", in relation to a court order granted under section 7(8)(a) of the Divorce Act or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion, means, in relation to a party who is a member of a fund, that member’s individual account or minimum individual reserve, as the case my be, determined in terms of the rules of that fund, on the date of the court order;[definition of "pension interest" inserted by section 11(g) of Act 31 of 2024]"principal employer" means—(a)Transnet; or(b)an alternative employer that is accepted as a principal employer for the purposes of this Act in terms of an agreement between Transnet and the Minister;[definition of "principal employer" inserted by section 1(h) of Act 6 of 2007]"retirement component" has the meaning as defined in section 1(1) of the Income Tax Act, subject to the applicable provisos to paragraph 6B of the Second Schedule to the Income Tax Act;[definition "retirement component" inserted by section 11(h) of Act 31 of 2024]“New Fund” means the New Railways and Harbours Superannuation Fund referred to in section 2 of the Railways and Harbours Pensions Act, 1971;“Pension Fund” means the Railways and Harbours Pension Fund for Non-White Employees established in terms of section 2 of the Railways and Harbours Pensions for Non-Whites Act, 1974; and“Rules” means the Rules referred to in section 5 of this Act, comprising the general rules and all special rules;[definition “Rules” substituted by section 1(i) of Act 6 of 2007]"savings component" has the meaning as defined in section 1(1) of the Income Tax Act, subject to the applicable provisos to paragraph 6B of the Second Schedule to the Income Tax Act;[definition of "savings component" inserted by section 11(i) of Act 31 of 2024]"savings withdrawal benefit" has the meaning as defined in section 1(1) of the Income Tax Act;[definition of "savings withdrawal benefit" inserted by section 11(i) of Act 31 of 2024]"Second Fund" [definition of "Second Fund" added by section 1 of Act 41 of 2000 and deleted by section 1(j) of Act 6 of 2007]"special rules", in relation to the Transport Pension Fund, means those rules of that fund that apply to a subfund of that fund only;[definition of "special rules" inserted by section 1(k) of Act 6 of 2007]"subfund", in relation to the Transport Pension Fund, means that part of that fund—(a)to which members, pensioners, dependent pensioners, assets, rights and obligations are attributable in terms of sections 4A(1), (2) and (3); and(b)which is governed by special rules and general rules;[definition of "subfund" inserted by section 1(k) of Act 6 of 2007]"subfund board", in relation to the Transport Pension Fund, means a board contemplated in section 4A(6)(a);[definition of "subfund board" inserted by section 1(k) of Act 6 of 2007]"subsidiary" means a subsidiary contemplated in section 3 of the Companies Act, 2008 (Act No. 71 of 2008);[definition of "subsidiary" inserted by section 1(k) of Act 6 of 2007 and substituted by section 11(j) of Act 31 of 2024]"Transnet" means Transnet SOC Limited, formed and incorporated in terms of section 2 of the Legal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989);[definition of "Transnet" inserted by section 1(k) of Act 6 of 2007 and substituted by section 11(k) of Act 31 of 2024]"Transnet group of employers" means—(a)Transnet;(b)any company formed in terms of section 32 of the Legal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989), in which Transnet owns shares; and(c)any other company in which Transnet or any subsidiary of Transnet is a shareholder, excluding any company that falls within an alternative group of employers;[definition of "Transnet group of employers" inserted by section 1(k) of Act 6 of 2007]"Transport Pension Fund" means the fund referred to in section 2;[definition of "Transport Pension Fund" inserted by section 1(k) of Act 6 of 2007]"Transnet Retirement Fund" means the Transnet Retirement Fund established by Transnet in terms of section 14A;[definition of "Transnet Retirement Fund" inserted by section 1(k) of Act 6 of 2007]"Transnet Second Defined Benefit Fund" means the fund established by section 14B(1);[definition of "Transnet Second Defined Benefit Fund" inserted by section 1(k) of Act 6 of 2007]"valuator" means an actuary approved by the Financial Sector Conduct Authority contemplated in the Pension Funds Act, 1956 (Act No. 24 of 1956), as a valuator for the purposes of the valuation of retirement funds and appointed in terms of section 6(1); and[definition of "valuator" inserted by section 1(k) of Act 6 of 2007 and substituted by section 11(l) of Act 31 of 2024]"vested component" has the meaning as defined in section 1(1) of the Income Tax Act, subject to the applicable provisos to paragraph 6B of the Second Schedule to the Income Tax Act;[definition of "vested component" added by section 11(l) of Act 31 of 2024]

1A. Application of Act

In the event of a conflict between the provisions of this Act and the Divorce Act, the provisions of this Act prevail.[section 1A inserted by section 12 of Act 31 of 2024]

2. Continued existence and change of name of Transnet Pension Fund

(1)The fund that immediately before the date of the commencement of the Transnet Pension Fund Amendment Act, 2007, existed as the Transnet Pension Fund shall continue to exist as a juristic person under the name of the Transport Pension Fund.

(2)Any reference to the Transnet Pension Fund in a law, the Rules or any other document shall be construed as a reference to the Transport Pension Fund.

[section 2 substituted by section 2 of Act 6 of 2007]

3. Obligations payable from revenue

Obligations which, in terms of regulations promulgated in terms of the Railways and Harbours Pensions Act, 1971 (Act No. 35 of 1971), and the Railways and Harbours Pensions for Non-Whites Act, 1974 (Act No. 43 of 1974), read in conjunction with section 36 of, and item (10)(a) of Schedule 2, Part 7, to, the Legal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989), are payable out of the revenue of Transnet shall continue to be payable, but shall be payable out of the revenue of one or more employers in such proportions—

(a)as may be agreed between them; or

(b)failing an agreement contemplated in paragraph (a), as the Minister, acting with the concurrence of the Minister of Finance, deems equitable after taking into account—

(i)the history of occupational retirement funding arrangements for employees of Transnet and its predecessors;

(ii)the history of Transnet and in particular the restructuring of Transnet in the period 2005 to 2007 and the consequential changes in the employment of employees at that time;

(iii)the terms of any agreements between the employers; and

(iv)the nature and extent of the liabilities of the Transport Pension Fund and the categories of members, pensioners and dependent pensioners to which they relate.

[section 3 substituted by section 40 of Act 52 of 1991 and by section 3 of Act 6 of 2007]

4. Determination of obligations and rights of certain members

The Rules must provide for recognition of the periods of membership of the New Fund or Pension Fund, as the case may be, of those members who were previously members of either of those funds for the purposes of determining their obligations to the Transport Pension Fund and the benefits and rights that would have been applicable had they, or the members through whose membership they became entitled to benefits, been contributors to the Transport Pension Fund from the date from which their contributions to the New Fund or the Pension Fund commenced.[section 4 substituted by section 4 of Act 6 of 2007]

4A. Division of Transport Pension Fund into subfunds

(1)

(a)When the Transnet Pension Fund Amendment Act, 2007, comes into operation, all existing members, pensioners, dependent pensioners, liabilities, assets, rights and obligations of the Transport Pension Fund shall from then on be attributable to a subfund with Transnet as the principal employer.

(b)With effect from the date on which an alternative employer is accepted as a principal employer a subfund shall be established in the name of that principal employer.

(2)The following persons shall be assigned to the subfund contemplated in subsection (1)(b):

(a)every employee who—

(i)was a member of the Transport Pension Fund as at 11 November 2005; and

(ii)has not ceased to be a member of the Transport Pension Fund; and

(b)every pensioner, if—

(i)the business in which the pensioner was employed at the time of his or her retirement was subsequently transferred to that principal employer or an employer in that principal employer's alternative group of employers; or

(ii)shares in the company by which the pensioner was employed at the time of his or her retirement were subsequently transferred to that principal employer or an employer in that principal employer's alternative group of employers,

and the transferor and transferee to the transactions referred to in subparagraphs (i) and (ii) have agreed that the pensioner shall be assigned to that subfund; and

(c)every dependent pensioner, if—

(i)the business in which the member was employed at the time of his or her retirement or death was subsequently transferred to that principal employer or an employer in that principal employer's alternative group of employers; or

(ii)shares in the company by which the member was employed at the time of his or her retirement or death were subsequently transferred to that principal employer or an employer in that principal employer's alternative group of employers,

and the transferor and transferee to the transactions referred to in subparagraphs (i) and (ii) have agreed that the dependent pensioner shall be assigned to that subfund.

(3)Upon establishment of a subfund—

(a)the assets and rights of the Transport Pension Fund relating to the persons contemplated in subsection (2) as determined by agreement between—

(i)the subfund board from which the persons were reassigned and the subfund board to which they are now assigned, after consultation with the Transport Pension Fund's valuator; and

(ii)the principal employers of the subfunds concerned,

shall be assigned to the subfund to which the persons referred to in subsection (2) are assigned; and

(b)any claim against the Transport Pension Fund by a person contemplated in subsection (2) shall be satisfied out of only the assets of the subfund to which he or she is now assigned.

(4)If a member is reassigned from one subfund to another, the liabilities, assets, rights and obligations contemplated in subsection (3) in respect of that member shall be similarly reassigned.

(5)The board of trustees of the Transport Pension Fund shall direct and oversee the operations of the Transport Pension Fund, subject to the Act and the Rules and without derogating from the powers of a subfund board.

(6)With effect from the date upon which subfund is established in terms of subsection (1)—

(a)a subfund board shall be appointed, the composition, powers and duties of which must be provided for in the Rules;

(b)special rules shall provide for, amongst other things—

(i)the rate at which members assigned to the subfund are required to contribute to the Transport Pension Fund;

(ii)the rate at which employers of members assigned to the subfund are required to contribute to the Transport Pension Fund;

(iii)the benefits payable by the Transport Pension Fund to the members assigned to the subfund and to the persons contemplated in subsection (2)(b) and (c);

(iv)matters incidental to the matters referred to in subparagraphs (i) to (iii); and

(c)special rules may provide for the transfer to an insurer registered as such in terms of the Long-Term Insurance Act, 1998 (Act No. 52 of 1998), of the liability of the Transport Pension Fund to pay a pension or any other benefit.

(7)Notwithstanding anything to the contrary in the Rules, a subfund board shall—

(a)exercise control over and manage the subfund;

(b)implement the investment policy and strategy as agreed with the principal employer;

(c)determine the allocation of benefits payable to dependent pensioners;

(d)determine whether a person who claims a benefit is entitled to that benefit;

(e)exercise such powers as the Minister may by regulation confer upon the subfund board; and

(f)exercise such powers as the board of trustees of the Transport Pension Fund may delegate to such board.

(8)The board of trustees of the Transport Pension Fund shall allocate to one or more subfunds any benefit, cost, loss sustained or liability due to or incurred by the Transport Pension Fund as a whole which is attributable to such subfund or subfunds.

(9)The general rules of the Transport Pension Fund shall provide for, amongst other things—

(a)the allocation to a subfund of costs incurred by the Transport Pension Fund;

(b)the administration of the Transport Pension Fund;

(c)the valuation of the Transport Pension Fund;

(d)the audit of the Transport Pension Fund; and

(e)all other matters related to the governance and management of the Transport Pension Fund.

(10)The administration of a subfund may, by agreement between the applicable principal employer and that subfund board, be conducted separately from any other subfund.

(11)The initial special rules of a subfund must provide for benefits and rates of contribution, as the case may be, applicable to its members, pensioners and dependent pensioners, which benefits and rates of contribution are the same as those which were applicable to them immediately before the establishment of the subfund.

(12)A principal employer is liable to the Transport Pension Fund for the payment of benefits due to members, pensioners and dependent pensioners of that subfund to the extent that the assets of the subfund are not sufficient to meet the benefits due.

(13)An employer's liabilities to the Transport Pension Fund are limited to those attributable to its members, pensioners and dependent pensioners assigned to its subfund.

[section 4A inserted by section 5 of Act 6 of 2007]

5. Rules of Transport Pension Fund

[heading substituted by section 6(a) of Act 6 of 2007]

(1)The control and management of the Transport Pension Fund, admission to and termination of membership, the amount and nature of contributions by members and contributions and other payments by the employers, and the benefits due to pensioners and dependent pensioners, the terms and conditions under which members of the Transport Pension Fund may elect to have their rights ceded, and assets commensurate with such rights transferred from the Transport Pension Fund to a pension fund established by the Minister in terms of section 14A(2), and the manner in which the Rules of the Transport Pension Fund may be amended, shall be governed by the Rules of the Transport Pension Fund.[subsection (1) substituted by section 2 of Act 41 of 2000 and by section 6(b) of Act 6 of 2007]

(2)[subsection (2) deleted by section 6(c) of Act 6 of 2007]

(3)Any amendment of—

(a)the general rules shall be made by the board of trustees of the Transport Pension Fund subject to the approval of all the principal employers or subject to the approval of a majority of the principal employers and of the Minister; and

(b)the special rules applicable to a subfund shall be made by the applicable subfund board subject to the approval of the principal employer.

[subsection (3) substituted by section 6(d) of Act 6 of 2007]

(3A)If, in the opinion of the valuator of the Transport Pension Fund, an amendment to either the general rules or the special rules may affect the financial condition of the Transport Pension Fund or any subfund such amendment shall only be made with the approval of the Minister, in concurrence with the Minister of Finance.[subsection (3A) inserted by section 6(d) of Act 6 of 2007]

(4)

(a)The general rules as amended from time to time shall be binding on each employer, member, pensioner, dependent pensioner and the Transport Pension Fund.

(b)The special rules of each subfund, as amended from time to time, shall be binding on the applicable employers, members, pensioners, dependent pensioners and, to the extent applicable, on the Transport Pension Fund.

[subsection (4) substituted by section 6(e) of Act 6 of 2007]

6. Actuarial valuation of Transport Pension Fund

[heading substituted by section 7(a) of Act 6 of 2007]

(1)The Transport Pension Fund shall be valued by a valuator, appointed by the Minister, within three years from the operative date of this Act and thereafter by a valuator appointed by the board of trustees of the Transport Pension Fund at intervals of not more than three years.[subsection (1) substituted by section 7(b) of Act 6 of 2007]

(1A)With effect from the date of commencement of the Transnet Pension Fund Amendment Act, 2007, and for the purposes of an actuarial valuation, each subfund shall be subject to an actuarial valuation as if it were a separate legal entity.[subsection (1A) inserted by section 7(c) of Act 6 of 2007]

(2)The report of the valuator shall comply with the requirements applicable to the valuation of retirement funds in terms of the Pension Funds Act, 1956 (Act No. 24 of 1956), and shall be submitted by the valuator to—

(a)the Minister;

(b)the Minister of Finance;

(c)the Financial Sector Conduct Authority; and[paragraph (c) substituted by section 13 of Act 31 of 2024]

(d)each principal employer.

[subsection (2) substituted by section 7(d) of Act 6 of 2007]

(3)[subsection (3) deleted by section 7(e) of Act 6 of 2007]

(4)[subsection (4) deleted by section 7(e) of Act 6 of 2007]

(5)[subsection (5) substituted by section 3 of Act 41 of 2000 and deleted by section 7(e) of Act 6 of 2007]

7. Withdrawals and deductions from member’s pension benefits

(1)

(a)Subject to this Act and any guarantee, suretyship or pledge in accordance with the rules of the designated retirement fund, in each case as contemplated by section 10A of this Act, no benefit provided for in the rules of the designated retirement fund including an annuity purchased or to be purchased by the designated retirement fund from an insurer for a member, or right to such a benefit, or right in respect of contributions made by a member or on his or her behalf, shall, subject to the Income Tax Act and the Tax Administration Act, 2011 (Act No. 28 of 2011), be capable of being assigned or transferred or otherwise ceded, or of being pledged or hypothecated, or be liable, except for a court order in terms of the Maintenance Act, 1998 (Act No. 99 of 1998), section 7(8)(a) of the Divorce Act, a court order granted in respect of the division of assets of a marriage according to the tenets of a religion or an interim maintenance order granted in terms of rule 43 of the High Court rules or rule 58 of the Magistrates’ Court rules, to be attached or subjected to any form of execution under a judgment or order of a court of law.

(b)In the event of the member or beneficiary attempting to assign, transfer or otherwise cede or to pledge or hypothecate a benefit or right, payment thereof may be withheld, suspended or entirely discontinued, if the designated retirement fund so determines, provided that the designated retirement fund may make payment of such benefit or of any benefit in pursuance of such contributions, or part thereof, to one or more of the dependants of the member or beneficiary or to a guardian or trustee for the benefit of such dependant or dependants during such period as it may direct.

(2)Notwithstanding the provisions of subsection (1), the designated retirement fund may—

(a)permit a member to take a savings withdrawal benefit where a loan, suretyship or guarantee has been furnished by the designated retirement fund or another entity referred to in section 10 or there is a judgment contemplated in section 9(1)(d)(i) or written admission of liability, in favour of the employer that has not yet been executed: Provided that the withdrawal may not result in there being insufficient funds remaining funds to repay the loan, pay the amount of the suretyship or guarantee or comply with the judgment;

(b)deduct from the member’s interest in the designated retirement fund, the member’s account or the member’s individual account, as the case may be, any amount payable by the member in terms of a maintenance order as defined in section 1 of the Maintenance Act, 1998 (Act No. 99 of 1998); or

(c)deduct from the member’s interest in the designated retirement fund, the member’s account or the member’s individual account, as the case may be, any amount payable by the member as maintenance in terms of an interim maintenance order granted by the court in terms of rule 43 of the High Court rules or rule 58 of the Magistrates’ Court rules, made under section 6 of the Rules Board for Courts of Law Act, 1985 (Act No. 107 of 1985).

(3)In respect of a deduction referred to in subsection (2)(b) or (c), the designated retirement fund must pay the maintenance, as directed by the maintenance order as a lump sum in respect of arrear maintenance or future maintenance from the benefit to which the member becomes entitled upon termination of his or her membership of the designated retirement fund or retirement from the designated retirement fund.

(4)A designated retirement fund may not permit a member to take a savings withdrawal benefit where there is a maintenance order or a written notification from the maintenance investigating officer against the designated retirement fund in place, unless it is satisfied that the withdrawal will not result in there being insufficient remaining value to comply with the order or the written notification.

(5)The rules of a designated retirement fund may provide for the designated retirement fund to provide savings withdrawal benefits to members of the designated retirement fund who are not pensioners.

[section 7 substituted by section 8 of Act 6 of 2007 and by section 14 of Act 31 of 2024]

7A. Payment of pension interest upon divorce or dissolution of marriage according to tenets of religion

(1)The designated retirement fund must deduct from the member’s interest in the designated retirement fund, the member’s account or the member’s individual account, as the case may be, any portion of the member’s pension interest assigned to the member’s former spouse in terms of a decree of divorce granted under section 7(8)(a) of the Divorce Act or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion.

(2)A designated retirement fund may not, without the consent of the non-member spouse, grant a loan or guarantee or permit a savings withdrawal benefit to be taken by a member if the designated retirement fund received written notification from the member or non-member spouse with proof that—

(a)a divorce has been instituted, as defined in the Divorce Act; or

(b)an application has been made for a court order in respect of the division of assets of a marriage in accordance with the tenets of any religion.

(3)The prohibition in terms of subsection (2) applies until finalisation of the divorce or until a court order is issued.

(4)Subject to subsection (6)(g), for purposes of section 7(8)(a) of the Divorce Act or in terms of or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion, the portion of a member’s pension interest assigned to the member’s former spouse is deemed to accrue to the member on the date on which the decree of divorce or court order is granted.

(5)The amount of the member’s pension interest in the designated retirement fund must be determined and the amount of the member’s pension interest that is assigned to the former spouse must be calculated by the designated retirement fund in accordance with the rules of the designated retirement fund, as at the date of the decree of divorce or the date of the court order granted in respect of the division of assets of a marriage according to the tenets of a religion.

(6)

(a)The designated retirement fund must, within 45 days of the submission of the court order by the former spouse of a member to the designated retirement fund, request the former spouse to elect whether the amount to be deducted must be—

(i)paid directly to the former spouse; or

(ii)transferred to an approved pension fund on behalf of the former spouse.

(b)The former spouse must, within 120 days of being requested to make a choice—

(i)inform the designated retirement fund of the manner in which the amount referred to in paragraph (a) must be dealt with; and

(ii)if the former spouse chooses that the amount must be—

(aa)paid to the former spouse directly, provide the designated retirement fund concerned with the details that are necessary to effect the payment; or

(bb)transferred to an approved pension fund on his or her behalf, provide the designated retirement fund with the details of that approved pension fund;

(c)The designated retirement fund must pay or transfer the amount in the circumstances contemplated in—

(i)paragraph (b)(ii)(aa) within 30 days; or

(ii)paragraph (b)(ii)(bb) within 60 days,

in accordance with the former spouse’s choice, failing which interest becomes payable on such amount at a rate determined in the rules of the designated retirement fund.

(d)In the event that the former spouse fails to make a choice or identify the approved pension fund to which the amount must be transferred within the period referred to in paragraph (b), the designated retirement fund must pay the amount directly to the former spouse within 30 days of the expiry of that period, failing which interest becomes payable on such amount at a rate determined in the rules of the designated retirement fund.

(e)Despite paragraph (d), in the event that the designated retirement fund cannot reasonably ascertain the manner in which the payment to the former spouse must be effected, the designated retirement fund must retain the amount plus interest as determined in the rules of the designated retirement fund, until such time as details of the manner in which that payment must be effected, is made available to the designated retirement fund by the member, the former spouse or any other person whom the designated retirement fund concerned is satisfied has the necessary authority and capacity to instruct the designated retirement fund in that respect.

(f)A former spouse—

(i)is not a member or beneficiary in relation to the designated retirement fund; and

(ii)is entitled to the accrual of fund return from the date of the deduction until payment or transfer of the deduction contemplated in subsection (1).

(g)Any portion of a member’s pension interest assigned to a former spouse in terms of a decree of divorce or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion granted prior to the enactment of this subsection must, for purposes of any law other than the Income Tax Act, including, but not limited to, section 7(8)(a) of the Divorce Act, be deemed to have accrued to the member on the date of enactment of this subsection, and must be paid or transferred in accordance with paragraphs (a) to (e).

[section 7A inserted by section 15 of Act 31 of 2024]

8. How pensions from Transport Pension Fund are affected by insolvency

[heading substituted by section 9(a) of Act 6 of 2007]

(1)If the estate of any member, pensioner or dependant pensioner (including the estate of any member, pensioner or dependent pensioner entitled to an annuity purchased by the Transport Pension Fund) is sequestrated or surrendered or assigned for the benefit of his or her creditors, any benefit payable to such person shall not form part of the assets in the insolvent estate of that person and shall be paid to that person for his or her own personal use or to his or her dependents for their own personal use, and may not in any way be attached or appropriated by the trustee of his or her insolvent estate or by his or her creditors, notwithstanding anything to the contrary in any law relating to insolvency.[subsection (1) substituted by section 9(b) of Act 6 of 2007]

(2)Whenever payment of a pension has been discontinued under this section, it shall be revived on rehabilitation of the pensioner or on the setting aside of the sequestration of his estate or on the claims of his creditors being satisfied, and he shall receive a pension at the same rate and under the same conditions as before the sequestration, surrender or assignment, together with any arrears that may be due.

9. Recovery of certain debts owing to the employer from benefits payable to members on their dismissal or retirement and in certain other circumstances

(1)If a member of a designated retirement fund—

(a)is dismissed on account of fraud, misconduct, theft or dishonesty;

(b)resigns or absconds in order to avoid dismissal on account of fraud, misconduct, theft or dishonesty, or in anticipation of a disciplinary or a criminal charge involving fraud or dishonesty being laid against him or her: Provided that the onus of proving that a member resigned or absconded for any reason mentioned in this paragraph shall be on the employer;

(c)leaves the employ of an employer for any reason, or dies, before any loan or advance, other than a loan referred to in section 10 or 10A of this Act, made to him or her at his or her specific written request by an employer or from the Benevolent Fund referred to in section 23 of the South African Transport Services Conditions of Service Act, 1988 (Act No. 41 of 1988), has been repaid in full; or

(d)is liable for compensation in the circumstances contemplated in subparagraph (i), the designated retirement fund may deduct any amount owed by the member to the member’s employer on the date of retirement, date of dismissal or date on which the member otherwise ceases to be a member of such fund, or the date on which the member’s employment with a participating employer in a designated retirement fund is terminated, in respect of compensation, including any legal costs recoverable from the member, in respect of any damage caused to the employer by reason of any theft, dishonesty, fraud or misconduct by the member, and in respect of which—

(i)the member has in writing admitted liability to the employer,

(ii)judgment has been obtained against the member in any court, including a magistrate’s court, and includes a compensation order granted in terms of section 300 of the Criminal Procedure Act, 1977 (Act No. 51 of 1977);

(iii)the amount of any loss, as determined by the employer, which the latter may have sustained by reason of such fraud, misconduct, theft or dishonesty on the part of the member; or

(iv)the unpaid balance of such loan or advance from any benefit payable in respect of the member or his or her estate or a beneficiary in terms of the rules of the designated retirement fund and pay that amount to the employer concerned.

(2)The designated retirement fund may request any additional information from the employer which the board of trustees, in its absolute discretion, deems necessary and reasonable for purposes of deducting the benefit.

[section 9 substituted by section 10 of Act 6 of 2007]

10. Application of benefits in liquidation of debts in respect of dwelling-houses

If in any agreement between an employer or another entity, approved by the board of trustees of the Transport Pension Fund which provides housing finance, and a member of the Transport Pension Fund in terms of which the member purchases from the employer any dwellinghouse or in terms of which the member is to receive any loan from the employer or the aforementioned entity in order to acquire land for the purpose of erecting a dwelling-house thereon or to acquire or erect a dwelling-house or to discharge any bond over any land or dwelling-house owned by the member, it is provided that—

(a)if for any reason the member retires on a pension, the Transport Pension Fund may, at the discretion of the employer and upon the member so retiring, commute in a cash sum such portion of the pension as may be necessary to liquidate any amount payable—

(i)under such agreement; or

(ii)in pursuance of any insurance entered into by the employer in connection with the repayment of any amount under such agreement,

which remains unpaid at the date of his or her retirement, the Transport Pension Fund may, upon the member so retiring, effect such commutation with a consequent reduction in pension benefits and, on behalf of the employer or entity, apply such first-mentioned amount towards the liquidation of the amount so remaining unpaid; or

(b)if for any reason the member ceases to be employed by an employer and is not immediately thereafter employed by another employer, or if the member dies before retirement, the employer or the Transport Pension Fund may apply any money due under this Act to him or her or his or her successor in title in respect of such property or of his or her interest in such property, towards the liquidation of any amount payable—

(i)under such agreement; or

(ii)in pursuance of any insurance entered into by the employer in connection with the repayment of any amount under such agreement,

which remains unpaid at the date of termination of employment or death, the Transport Pension Fund may on behalf of the employer or entity, upon the member's termination of employment or upon his or her death, as the case may be, so apply the said money with a consequent reduction in pension benefits, provided that the Transport Pension Fund shall not so apply out of money so due to any such successor an amount in excess of the amount which bears to the total amount so remaining unpaid the same proportion as the value of such successor's share or interest in property bears, in the opinion of the Transport Pension Fund, to the value of the whole thereof, provided further that no benefit payable to a widow or widower shall be so applied.

[section 10 substituted by section 11 of Act 6 of 2007]

10A. Housing loan schemes involving financial support from designated retirement fund

(1)A designated retirement fund may, in accordance with the rules of the designated retirement fund, provide a loan to a member of the designated retirement fund, or provide a suretyship or guarantee to a financier, in order to enable a member of the designated retirement fund to acquire, improve or refinance residential immovable property.

(2)The member of the designated retirement fund may, in accordance with the rules of the designated retirement fund, secure its obligations in respect of any such transaction by pledging some or all of the rights of the member in respect of the designated retirement fund to the designated retirement fund.

[section 10A inserted by section 17 of Act 31 of 2024]

11. Recovery of amounts in respect of medical scheme

The Transport Pension Fund and the Transnet Second Defined Benefit Fund are hereby empowered to recover money due by a pensioner to Transmed (the medical scheme referred to in section 10(2) of the Legal Succession to the South African Transport Services Act, 1989 (Act No.9 of 1989)), in terms of the Transmed Rules and to pay such money to Transmed.[section 11 substituted by section 4 of Act 41 of 2000 and by section 12 of Act 6 of 2007]

11A. Recovery of other amounts due by member of designated retirement fund

(1)A designated retirement fund may deduct any amount that such fund has paid or will pay by arrangement with, and on behalf of, a member or beneficiary in respect of—

(a)the member’s or beneficiary’s subscription to a medical scheme, registered otherwise than provisionally in terms of the Medical Schemes Act, 1998 (Act No. 131 of 1998);

(b)any insurance premium payable by such a member or beneficiary to an insurer licensed in terms of the Insurance Act, 2017 (Act No. 18 of 2017), in respect of a life insurance policy; and

(c)any purpose approved by the Financial Sector Conduct Authority, on the conditions determined by that Authority, upon a request in writing from the designated retirement fund, from the benefit to which the member or beneficiary is entitled in terms of the rules of the designated retirement fund, and pay such amount, if due, to such medical scheme, insurer or person concerned, as the case may be.

(2)The rules of the designated retirement fund may provide for deductions from the benefits and transfer values of a member of the designated retirement fund in accordance with, and for such benefits and transfer values to be reduced, adjusted or otherwise affected—

(a)by the Income Tax Act and the Tax Administration Act, 2011 (Act No. 28 of 2011) and a designated retirement fund;

(b)by any loan, suretyship or guarantee provided in accordance with this Act or the rules of the designated retirement fund; or

(c)in accordance with the rules of the designated retirement fund.

(3)Where there is any deduction in terms of this Act, the rules of the designated retirement fund may allocate that deduction to any account or components contemplated by the Income Tax Act.

[section 11A inserted by section 18 of Act 31 of 2024]

12. Guarantee

(1)Subject to sections 4A(12) and (13), the obligations of Transnet and the State in respect of the New Fund and the Pension Fund in terms of section 3(2) and section 16 of the Legal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989), shall be deemed to be obligations towards the Transport Pension Fund and the Transnet Second Defined Benefit Fund in such proportions as determined by a valuator appointed by the Minister in consultation with the valuator appointed by the Transport Pension Fund and the valuator appointed by Transnet.

(2)Transnet guarantees the financial obligations of the Transnet Second Defined Benefit Fund.

[section 12 substituted by section 5 of Act 41 of 2000 and by section 13 of Act 6 of 2007]

13. Registration and application of Pension Funds Act, 1956

(1)The Registrar of Pension Funds may, on request by the Transport Pension Fund, register the Transport Pension Fund in terms of section 4 of the Pension Funds Act, 1956, and may, for the purposes of such request, regard the Transport Pension Fund as a 'pension fund organization' as defined in section 1(1) of that Act.

(2)Upon such registration—

(a)the whole of the Pension Funds Act, 1956, shall become applicable to the Transport Pension Fund; and

(b)the provisions of sections 7 to 11A of this Act shall cease to be applicable.[paragraph (b) substituted by section 19 of Act 31 of 2024]

[section 13 substituted by section 14 of Act 6 of 2007]

14. Membership of funds

[heading substituted by section 15(a) of Act 6 of 2007]

(1)Any employee of an employer who is a member of the Transport Pension Fund or the Transnet Retirement Fund, may, subject to the rules applicable to that fund, continue to enjoy membership of that fund if—

(a)he or she continues to be employed by the employer; or

(b)he or she becomes employed by another employer as a consequence of a transfer of business as contemplated in section 197 of the Labour Relations Act, 1995, (Act No. 66 of 1995).

[subsection (1) substituted by section 15(b) of Act 6 of 2007]

(2)Only persons who are employed by an employer in the Transnet group of employers after the commencement of the Transnet Pension Fund Amendment Act, 2007, may become members of the Transnet Retirement Fund.[subsection (2) substituted by section 15(b) of Act 6 of 2007]

(2A)If an employer ceases to be an employer its employees who are members of the Transport Pension Fund or the Transnet Retirement Fund cease to be members of that fund.[subsection (2A) inserted by section 15(c) of Act 6 of 2007]

(2B)If an employee who is a member of the Transport Pension Fund or the Transnet Retirement Fund ceases to be employed by an employer, other than—

(a)in the circumstances contemplated in subsection (1); or

(b)as a consequence of retirement,

he or she shall cease to be a member of Ihat fund.[subsection (2B) inserted by section 15(c) of Act 6 of 2007]

(3)[subsection (3) amended by section 6 of Act 41 of 2000 and deleted by section 15(d) of Act 6 of 2007]

(4)[subsection (4) deleted by section 15(d) of Act 6 of 2007]

[section 14 substituted by section 41 of Act 52 of 1991]

14A. Powers of Transnet to establish pension funds

[heading substituted by section 16(a) of Act 6 of 2007]

(1)In this section, "pension fund" means a pension fund contemplated in subsection (2).[subsection (1) substituted by section 16(b) of Act 6 of 2007]

(2)Notwithstanding the establishment of the Transport Pension Fund in terms of section 2(1), Transnet may, subject to the approval of the Minister, acting with the concurrence of the Minister of Finance, by notice in the Gazette establish one or more pension funds.[subsection (2) substituted by section 16(b) of Act 6 of 2007]

(3)A pension fund established in terms of subsection (2) shall be vested with legal personality and shall be capable of owning assets, incurring liabilities, suing or being sued in its own name and of doing all such things as may be necessary for or incidental to the exercise of its powers or the performance of its functions in terms of its particular rules.[subsection (3) substituted by section 16(b) of Act 6 of 2007]

(4)The control and management of the pension fund, admission to and termination of membership, the amount and nature of contributions by members and contributions and other payments by the employer and the benefits due to pensioners and beneficiaries as well as the manner in which the rules of such pension fund may be amended, shall be governed by the particular rules of such pension fund.[subsection (4) substituted by section 16(b) of Act 6 of 2007]

(5)The rules of the pension fund shall, subject to the approval by the Minister, acting with the concurrence of the Minister of Finance, be published in the Gazette and shall come into operation on the date of such publication.

(6)The rules of the pension fund, as amended from time to time, shall bind each employer which employs members of the pension fund or which employed persons who were members of the pension fund immediately before their retirement or disablement, members, pensioners, beneficiaries of such pension fund and the pension fund.[subsection (6) substituted by section 16(c) of Act 6 of 2007]

(7)A pension fund is deemed to be a pension fund as defined in paragraph (a) of the definition of ‘pension fund’ in section 1 of the Income Tax Act.[subsection (7) substituted by section 16(c) of Act 6 of 2007 and by section 20 of Act 31 of 2024]

(8)Sections 6, 7, 7A, 8, 9, 10, 10A, 11, 11A, 13 and 14 apply with the changes required by the context to a pension fund.[subsection (8) substituted by section 16(c) of Act 6 of 2007 and by section 20 of Act 31 of 2024]

[section 14A inserted by section 7 of Act 41 of 2000]

14B. Establishment of Second Fund

(1)The Transnet Second Defined Benefit Fund is hereby established.

(2)Pensioner members of the Transport Pension Fund as at the date of commencement of the Transnet Pension Fund Amendment Act, 2000 (Act No. 41 of 2000), are hereby transferred from the Transport Pension Fund to the Transnet Second Defined Benefit Fund.[subsection (2) substituted by section 17(a) of Act 6 of 2007]

(3)All the assets, liabilities, rights and obligations pertaining to the members referred to in subsection (2), as determined by a valuator appointed by the Minister in consultation with an actuary appointed by the Transport Pension Fund and an actuary appointed by Transnet, shall vest in and devolve upon the Transnet Second Defined Benefit Fund without any formal transfer or cession with effect from the date of publication of such determination in the Gazette by the Minister.[subsection (3) substituted by section 17(a) of Act 6 of 2007]

(4)The Transnet Second Defined Benefit Fund shall be vested with legal personality and shall be capable of suing or being sued in its own name and of doing all such things as may be necessary for or incidental to the exercise of its powers or the performance of its functions in terms of its rules.[subsection (4) substituted by section 17(a) of Act 6 of 2007]

(5)The control and management of the Transnet Second Defined Benefit Fund, the benefits due to pensioners and the beneficiaries shall be governed by the rules of the Transnet Second Defined Benefit Fund set out in the Schedule to the Transnet Pension Fund Amendment Act, 2000 (Act No. 41 of 2000).[subsection (5) substituted by section 17(a) of Act 6 of 2007]

(6)The rules set out in the Schedule may be amended by the board of trustees of the Transnet Second Defined Benefit Fund with the approval of Transnet: Provided that an amendment that is likely to affect the financial condition of the Transnet Second Defined Benefit Fund shall be of no force or effect unless it has also been approved by the Minister acting with the concurrence of the Minister of Finance.[subsection (6) substituted by section 17(a) of Act 6 of 2007]

(7)The Minister may by notice in the Gazette, with the approval of Transnet and the approval of the board of trustees of the Transnet Second Defined Benefit Fund, determine that those persons or categories of persons receiving pensions and benefits from Transnet will become entitled, with effect from a date stipulated in the notice, to pensions and benefits from the Transnet Second Defined Benefit Fund, which shall be no less favourable than that which they presently receive whereupon the pensions and benefits from Transnet shall cease.[subsection (7) added by section 17(b) of Act 6 of 2007]

[section 14B inserted by section 7 of Act 41 of 2000]

15. Repeal of laws

The Railways and Harbours Pensions Act, 1971, and the Railways and Harbours Pensions for Non-Whites Act, 1974, are hereby repealed.

15A. Minister's powers to make regulations

(1)The Minister may make regulations regarding—

(a)anything that must or may be prescribed in terms of this Act; and

(b)any ancillary or incidental administrative or procedural matter that it is necessary to prescribe for the proper implementation or administration of this Act.

[section 15A inserted by section 18 of Act 6 of 2007]

16. Short title and commencement

This Act shall be called the Transnet Pension Fund Act, 1990, and shall come into operation on a date to be stipulated by the State President in the Gazette.

Schedule

Rules

[Schedule added by Act 41 of 2000]

1.This fund is established at the commencement date to provide benefits exclusively for pensioners from the Transnet Pension Fund.

2.DefinitionsIn these Rules, unless the context otherwise indicates-"actuary" means a fellow of any institute, faculty, society or chapter of actuaries appointed in terms of section 6 of the Act;"auditor" means an auditor registered under the Public Accountants' and Auditors' Act, 1991 (Act No. 80 of 1991), appointed by the Board in terms of rule 9(3);"Board" means the Board of Trustees referred to in rule 5;"commencement date" means the commencement date to be published by the Minister by notice in the Gazette;"Company" means Transnet Limited;"dependant", in relation to a pensioner, means-(i)a spouse of a recognised marriage, provided that such person is not living apart from the pensioner, whether by judicial agreement or otherwise;(ii)a child, stepchild, legally adopted child or child born out of wedlock, whose age is not more than 18 years, who is unmarried and who, in the discretion of the Board, was dependent on the pensioner at the time of death of the pensioner;(iii)a child contemplated in subparagraph (ii) but who is older than 18 years and younger than 26 years and who is studying full time or is physically or mentally handicapped: Provided that the Board may in a particular case extend the maximum age of 26 years, on condition that the employer agrees to contribute to the Fund such additional amounts as deemed necessary, by the actuary, to make provision for such benefit;(iv)a child born after the death of a pensioner who would have been regarded as a child in terms of subparagraph (ii); or(v)a person, who in the opinion of the Board, was in fact dependent upon the pensioner for maintenance;"employer" means an employer as defined in section 1 of the Act, read with section 14 thereof;"interest" means interest compounded monthly;"Managing Director" means the Managing Director of the Company or the Managing Director's delegate;"meeting" includes an adjourned meeting;"Minister" means the Minister of Public Enterprises;"pensioner" means a pensioner member transferred from the Transnet Pension Fund in terms of section 14B of the Act and shall include a widow or widower or dependant pensioner member;"Registrar" means the Registrar of Pension Funds appointed under the Pension Funds Act, 1956 (Act No. 24 of 1956);"recognised marriage" means a lawful marriage or a customary marriage or a marriage by religious rites, or a cohabitation or any other union between a pensioner and another person which is deemed by the Board to be a recognised marriage: Provided that the Board may include a person from a recognised marriage which has been dissolved where the other person is still financially dependent on the pensioner;"the Act" means the Transnet Pension Fund Act, 1990 (Act No. 62 of 1990);"Transnet Pension Fund" means the Fund established in terms of section 2 of the Act.

3.Fund: Object, Membership, Contributions and Transfers

(1)The Fund to which these Rules apply, is the Transnet Second Defined Benefit Fund established by section 14B of the Act.

(2)In terms of section 14B(4) of the Act, the Fund is vested with legal personality and is capable of suing or being sued in its own name and of doing all such things as may be necessary for or incidental to the exercise of its powers or the performance of its functions in terms of the rules.

(3)The object of these rules shall be to maintain and regulate a fund, from which benefits to pensioners, or their dependants shall be paid, and for whose benefit this fund is established.

(4)Membership shall commence from the date of transfer of a pensioner from the Transnet Pension Fund in terms of section 14B of the Act.

(5)No pensioner shall contribute to this fund: Provided that the employer, if the Trustees deem this necessary after consultation with the actuary, shall contribute to the Fund.

(6)The Trustees of the fund shall have the power to receive transfer values of pensioners from the Transnet Pension Fund.

4.Registered OfficeThe registered office of the Fund shall be at 222 Smit Street, Braamfontein, Johannesburg or such other address as the Trustees may decide, notification of which must be given to the Minister.

5.Board of Trustees

(1)The Board of Trustees shall comprise six Trustees and their alternates appointed by the employer, of which two trustees and their alternates shall be nominated from amongst pensioners.

(2)The Board of Trustees shall control the Fund.

(3)The Managing Director shall appoint a Chairperson for the Board.

(4)Subject to there being sufficient members to form a quorum as laid down in rule 7(5), the Board shall be entitled to function notwithstanding the existence of any vacancy.

(5)The duty of the Chairperson, members and alternates towards the Fund shall be of a fiduciary nature and they shall, when acting in such capacities, act only in the interests of the Fund, its pensioners and other beneficiaries, to the exclusion of all other considerations or objectives.

(6)The Trustees shall conduct themselves, at meetings of the Board, in a responsible manner that is in harmony with their status as Trustees. Should a Trustee act in breach of this requirement, the Board may, by a majority vote of at least two thirds of Trustees present at the meeting at which such breach occurs, require the person concerned to leave the meeting or take such other decision or action as may, in the circumstances, be necessary.

6.Disqualification and tenure of office of Board members

(1)Any of the following persons shall be disqualified from being appointed or acting as the Chairperson or a member of the Board:

(a)a body corporate or a minor or any person who is insane or any other person otherwise incapable of acting as a Trustee;

(b)an unrehabilitated insolvent;

(c)any person convicted of theft, fraud, perjury, an offence under the Corruption Act, 1992 (Act No. 94 of 1992), or any other offence involving dishonesty;

(d)any person sentenced to imprisonment without the option of a fine;

(e)any person removed by a competent court from any office of trust on account of misconduct.

(2)The Chairperson or a Trustee of the Board shall cease to hold office upon—

(a)resignation from the Board;

(b)disqualification in terms of subrule (1); or

(c)termination of appointment by the Managing Director.

7.Meeting of Board of Trustees

(1)The Board shall meet at least every quarter and at such other times as the Board may decide.

(2)The Board shall at the last meeting of every year determine the dates for the quarterly meetings to be held in the forthcoming year.

(3)A special meeting shall be called at any time on the instruction of the Chairperson or at the written request of any three members of the Board.

(4)The Chairperson, when unable to attend any meeting, shall appoint an Acting Chairperson for that meeting, or failing such appointment, the Board of Trustees shall appoint an Acting Chairperson.

(5)The majority of the members of the Board shall constitute a quorum for a meeting of the Board.

(6)A decision by a majority of the members of the Board present at a meeting of the Board shall constitute a decision of the Board.

(7)Decisions of the Board shall be taken by a show of hands or, if so required by any member of the Board present at the meeting, by ballot.

(8)The Chairperson shall not have a deliberative vote.

(9)The Chairperson shall have a casting vote, which may be exercised in the event of an equality of votes.

(10)If there is no quorum at a meeting of the Board within thirty (30) minutes after the time fixed for its commencement, the meeting shall adjourn for a period of not less than a week.

(11)At such adjourned meeting the members present shall form a quorum.

8.Minutes

(1)The Board shall record the minutes of all its meetings.

(2)Such minutes, if signed by any person purporting to be the Chairperson of the meeting to which it relates, shall be regarded as a true record of the proceedings of that meeting.

9.Powers of Board of Trustees

(1)The Board may prescribe the manner in which the award of benefits shall be considered by the Fund.

(2)The Board may take any action (including the control of the finances and the administration of the Fund) not specifically provided for in these rules that may be necessary to achieve the objects of the Fund.

(3)The Board shall appoint an auditor for the Fund and the contract effecting the appointment may be terminated by notice duly given by either party.

(4)The Board shall appoint—

(a)an Executive Committee which shall consist of—

(i)a chairperson appointed by the Board;

(ii)the manager (Principal officer) of the Fund; and

(iii)one member of the Board and an alternate member, nominated by the members of the Board; and

(b)an Investment Committee which shall consist of—

(i)a Chairperson appointed by the Board;

(ii)a member of the personnel of an employer, engaged in the administration of the Fund and nominated by the Chairperson of the Board; and

(iii)one member of the Board and an alternate member, nominated by the members of the Board.

10.Executive CommitteeThe Executive Committee shall—

(a)settle all disputes in respect of benefits;

(b)authorise the payment of benefits to a guardian of a minor or to a curator of a person under legal disability; and

(c)perform any other duties prescribed by the Board.

11.Investment Committee

(1)The Investment Committee shall—

(a)subject to the requirements stipulated in the Pension Funds Act, 1956 (Act No. 24 of 1956), and the regulations promulgated thereunder in connection with the investment of money, invest or cause to be invested the monies of the Fund not immediately required for current expenses, to the best advantage of the Fund;

(b)submit reports on the investments to the Board at such intervals and in such form as the Board may prescribe; and

(c)keep complete accounts, records and minutes of all actions taken in the performance of its functions and the exercise of its powers.

(2)The Investment Committee may, for the purpose of subrule (1), make use of the services of portfolio managers not employed by the Fund or an employer.

(3)Any security belonging to the Fund and held by the Investment Committee or portfolio managers on its behalf shall be kept in safe custody in the safes or strongrooms at the registered office of the Fund or at any bank or building society approved by the Board or in the safe custody of the portfolio managers appointed in terms of subrule (2).

12.Manager and Principal Officer

(1)The Managing Director shall appoint a member of the personnel of the employer to be the Manager (Principal Officer) of the Fund and may, at any stage, terminate such appointment.

(2)Should the Manager (Principal Officer) be absent from the Republic for more than thirty days or be otherwise unable to fulfil his or her functions, the Managing Director shall appoint another person to act as Manager (Principal Officer) for the period of such absence or inability and shall advise the Board of the appointment.

(3)The Manager (Principal Officer) shall have power—

(a)to open and operate a banking account in the name of the Fund;

(b)to receive and administer the money of the Fund required for current expenses;

(c)with the approval of the Board to borrow money from any source and to obtain an overdraft from a bank or building society;

(d)to enter into and sign any contract or document on behalf of the Fund;

(e)to institute or defend any legal proceedings by or against the Fund and to instruct a legal representative with regard to such proceedings;

(f)to arrange with the Managing Director for the appointment of suitable members of the personnel of an employer to conduct the administration of the Fund;

(g)to execute decisions of the Investment Committee; and

(h)to execute decisions of the Executive Committee.

13.Appointment of Secretary

(1)The Managing Director shall appoint a member of the personnel of an employer as the Secretary of the Fund and may, at any stage, terminate any such appointment.

(2)The Manager (Principal Officer) may appoint any person from among those referred to in rule 12(3)(f) to perform the duties of the Secretary, while the Secretary is absent or otherwise not available to perform his or her duties.

14.Duties of SecretaryThe Secretary shall—

(a)keep all documents relating to the business of the Fund in safe custody, except those which are prescribed by law to be kept by any other person;

(b)submit to the Board all matters and documents received from an employer;

(c)receive notices of matters to be considered by the Board;

(d)convene all meetings of the Board, Executive Committee and Investment Committee;

(e)record the minutes of the proceedings of all meetings of the Board, Executive Committee and Investment Committee;

(f)circulate copies of all minutes of the Board to all members of the Board; and

(g)perform such other duties as the Board may from time to time prescribe.

15.ConfidentialityThe Chairperson, members of the Board and their alternates, and all persons engaged in the administration of the Fund, shall treat all matters and information that relate to the Fund as confidential.

16.Idemnification and insurance

(1)The Fund shall indemnify the Chairperson, members of the Board and their alternates, and all persons engaged in the administration of the Fund, against all costs and expenses incurred by reason of any act carried out in good faith in the performance of their duties in connection with the Fund.

(2)The Board shall insure the Fund against losses due to dishonesty or fraud of persons engaged in the administration of the Fund, including members of the Board.

17.Administration expensesThe employer shall pay all expenses in connection with the administration of the Fund.

18.Accounts, audit and actuarial valuation

(1)

(a)The Board shall keep such accounts, entries, registers and records which are essential for the proper functioning of the Fund.

(b)The accounts shall be prepared in the format prescribed by regulation in terms of the Pension Fund Act, 1956 (Act No. 24 of 1956), and shall be balanced at the end of each financial year and shall be audited by the auditor.

(c)The Board shall, at the end of the financial year, submit to the employer—

(i)an annual report on all matters relating to the Fund; and

(ii)the financial statements pertaining to the Fund.

(d)The auditor shall have access to all books, vouchers, accounts and documents of the Fund.

(e)When an audit report reflects that the Fund's accounts are not managed on a sound financial basis, the Board shall inform the Minister.

(f)The financial year of the Fund shall be from 1 April up to and including 31 March of the following year.

(2)

(a)The Board shall cause to be kept records to enable the actuary to make an actuarial valuation at any time.

(b)The Fund shall be valued by the actuary at intervals of not more than three years, in the discretion of the Minister, to determine whether the Fund is in a financial position to pay the benefits provided for in these rules and the actuary shall submit the report of the valuation to the Minister, the Minister of Finance, the employer and the Board.

19.Unsound financial position

(1)When an actuarial report referred to in rule 18(2)(b) indicates that the Fund is not in a financially sound position, the Minister, with the concurrence of the Minister of Finance, may direct the Board to submit a schedule setting out arrangements designed to restore the fund to a financially sound position within three months from the date of receipt of such direction, together with a report thereon by the actuary.

(2)When any audit or actuarial report indicates a deficiency in the Fund, the Board shall, within three months from the date of such report, submit a scheme to the Minister and the Minister of Finance setting out the arrangements which have been made or which it is intended to make to eliminate the deficiency, together with a report thereon by the actuary.

(3)If the Minister and the Minister of Finance are satisfied that the arrangements referred to in subrule (1) or (2) should suffice to accomplish the objects of this rule, the Minister shall approve the scheme.

(4)The Minister, if not satisfied with such arrangements, shall, in concurrence with the Minister of Finance, request the Board to make such amendments to the scheme, or to submit a new scheme, and the Board shall, within a period prescribed by the Minister, which is not less than 30 days from the date of the request, furnish the Minister and the Minister of Finance with a report on such amendments or such new scheme and a report by the actuary, and the provisions of subrule (3) shall apply to any such amended scheme or new scheme which the Board may submit.

(5)The Board shall carry out the terms of any scheme approved by the Minister under this rule: Provided that-

(a)the Minister may, with the concurrence of the Minister of Finance, permit the Board to amend such scheme from time to time;

(b)if any information submitted to the Minister during the currency of such scheme indicates, in the opinion of the Minister, that the scheme is unlikely to accomplish the objects of this rule, such approval of the scheme may be withdrawn, and the Board shall, within three months thereafter, prepare a further scheme to which the provisions of this rule shall apply with the changes required by the context; and

(c)if, in the opinion of the Minister of Finance, the financial condition of the Fund is no longer unsound, the former shall inform the Manager to that effect and, on receipt of such communication, the obligations of the Fund in respect of that scheme shall terminate.

(6)If the Minister, in concurrence with the Minister of Finance, is of the opinion that the Fund is in such an unsound financial condition that any scheme contemplated in this rule would be ineffective, impracticable or unsatisfactory, the Minister may-

(a)apply to the court for an order directing that the provisions of these rules relating to the appointment, powers, remuneration (if any) and removal from office of the person managing the business of the Fund, or relating to such other matter as he or she may regard appropriate, be altered in a manner to be specified in such application, or directing that the whole or any part of the business of the Fund be wound up; or

(b)call on a guarantee to be furnished by the employer to place the Fund in a financially sound condition on terms specified by the Minister.

20.Appeals

(1)If a person is dissatisfied with any decision of the Manager, such person shall have a right of appeal to the Executive Committee.

(2)If a person is dissatisfied with a decision of the Executive Committee, including a decision on appeal in terms of subrule (1), such person shall have a right of appeal to the Board.

(3)The decision of the Board on any such appeal shall be final and binding on the parties.

21.Disposition of pension benefits on death of pensioner

(1)Any benefit payable in terms of the rules of the Fund in respect of a deceased pensioner shall be dealt with in the following manner, subject to the provisions of sections 9, 10 and 11 of the Divorce Act, 1979 (Act No. 70 of 1979), and shall not form part of the assets in the estate of such a pensioner:

(a)If the Fund within 12 months of the death of a pensioner becomes aware of or traces a dependant or dependants of the pensioner, the benefit shall be paid to such dependant or dependants or, in such proportions as may be deemed equitable by the Fund, to such dependants.

(b)If the Fund does not become aware of or is unable to trace any dependant of the pensioner within 12 months of the death of the pensioner and the pensioner has nominated to the Fund in writing a nominee who is not a dependant of the pensioner to receive such benefit or such portion of the benefit as is specified by the pensioner in writing to the Fund, the Fund may in its discretion authorise such payment: Provided that where the aggregate amount of the debts in the estate of the pensioner exceeds the aggregate amount of the assets in the estate, so much of the benefit as is equal to the difference between such aggregate amount of debts and such aggregate amount of assets shall be paid into the estate and the balance of such benefit or the balance of such portion of the benefit as specified by the pensioner in writing to the Fund shall be paid to the nominee at the discretion of the Fund.

(c)If a pensioner has a dependant and the pensioner has also nominated in writing a nominee to the Fund to receive the benefits or such portion of the benefits as is specified by the pensioner in writing to the Fund, the Fund shall within 12 months of the death of such pensioner pay at the discretion of the Fund the benefit or such portion thereof to such dependant or nominee in such proportions as the Board may deem equitable.

(d)If the Fund does not become aware of or is unable to trace any dependant of the pensioner within 12 months of the death of the pensioner and if the pensioner has not designated a nominee or if the pensioner has designated a nominee to receive a portion of the benefit as specified by the pensioner in writing to the Fund and approved of by the Fund, the benefit or the remaining portion of the benefit after payment to the nominee, shall be paid into the estate of the pensioner or, if no inventory in respect of the pensioner has been received by the Master of the High Court in terms of section 9 of the Administration of Estates Act, 1965 (Act No. 66 of 1965), into the Guardians Fund.

(2)For the purpose of this rule a payment by the Fund to a trustee contemplated in the Trust Property Control Act, 1988 (Act No. 57 of 1988), for the benefit of a dependant or nominee contemplated in this rule shall be deemed to be a payment to such dependant or nominee.

22.Pension benefitsThe pension equals the pension payable and calculated in terms of the Transnet Pension Fund Rules and all the conditions that apply in terms of the Transnet Pension Fund Rules shall apply to this pension.

23.Death of pensioner

(1)Upon the death of a person who is in receipt of a pension in terms of these rules there shall be paid to the dependant or dependants a benefit, as determined by the Fund and provided for in this subrule in relation to the particular class of dependant.

(2)If the dependant is the deceased pensioner's spouse there shall be paid a pension calculated as follows:

(a)If the deceased pensioner retired on attaining the age limit, it shall be calculated at 70% of the pension which was payable to the deceased pensioner on the date of death;

(b)if the deceased pensioner retired before attaining the retirement age, it shall be calculated by multiplying 70% of the pension which was payable at the date of death, by the factor which is arrived at by dividing the sum total of pensionable service and the number of years service that the member could still have rendered from the date of death to the date of statutory retirement, by the pensionable service.

(c)Where the deceased pensioner marries after the date of retirement there shall be paid a pension calculated as follows:

(i)Where the age difference between the pensioner and the spouse is not more than five years, the benefit determined in subrule 2(a) or 2(b) shall be payable.

(ii)where the age difference is more than five years, the benefit as determined in subrule (2)(a) or (2)(b) is adjusted by multiplying the benefit with a factor that is arrived at by dividing the age of the spouse by that of the pensioner provided that the pension shall not exceed that as determined in subrule (2)(a) or (2)(b).

(3)If the dependant in subrule (1) is someone other than the spouse of the deceased pensioner, a pension shall be paid to the dependants at the discretion of the Fund and on a basis determined by the Fund, but shall not exceed 80% of the pension calculated in terms of subrule (2)(a) or (2)(b).

(4)Upon the death of a pensioner to whom a pension was paid upon dismissal or on the ground of impossibility of performance or supervening impossibility of performance after the completion of 20 years service, there shall be paid to the dependant or dependants as determined by the Fund a pension referred to in subrule (2)(a) or subrule (3), as the case may be.

(5)In relation to the death of a pensioner contemplated in subrule (2)(a) who was a female pensioner, no benefit is paid to her spouse or dependants if—

(a)such member retired before 1 January 1991; and

(b)such member elected on or before 1 January 1991 to exclude her spouse or dependants from receiving any benefit upon her death.

24.Annual increaseThe pension received by a pensioner shall be increased by 2%, compounded annually, for each completed year in respect of which the pension has been or is received: Provided that in the case of a widow or widower or dependant pensioner, the 2% enhancement of the pension shall be calculated from the date on which the pension first became payable to the original pensioner.

25.Payement to person other than beneficiaryThe Manager may, if he or she is satisfied, after having considered a report by two medical practitioners, that any beneficiary to whom any amount is payable under these rules is, by reason of a mental condition, unable to manage his or her own affairs, order—

(a)that such amount be paid to some other person upon such conditions as the Manager may determine as to its administration for the benefit of the beneficiary; or

(b)that a portion of such amount be paid to the beneficiary, and that the balance be paid, in the order of preference laid down in rule 23, to the persons mentioned in that paragraph who are dependent upon the beneficiary, or to some other person upon such conditions as the Manager may determine as to its administration, in accordance with the said order of preference, for the benefit of any such dependent person, or that the balance be partly so paid to any such dependent person and partly to such other person upon the said conditions: Provided that no such order shall be made in respect of a beneficiary for the administration of whose estate a curator bonis has been appointed and that any such order shall lapse if a curator bonis for the administration of the estate of the beneficiary concerned is appointed.

26.Payment to estateWhen the amounts referred to in rule 23 have been paid to any person mentioned therein other than the person lawfully administering the estate of a deceased pensioner, the employer and the Fund shall be exempt from any further claim under any of those paragraphs, and no such amount shall be deemed to form part of the estate of the deceased.

27.Provision in case of pensioner who is re-employedIf a member of the Fund has been granted a pension under these rules or appropriate provisions that preceded these rules and is thereafter re-employed, such member shall continue to receive the pension being paid.

28.Payement of pension

(1)The Manager shall arrange for the monthly amount of a pension to be credited to a pensioner's account at a bank to be nominated by the pensioner.

(2)

(a)Where exceptional circumstances prevail, the Manager may arrange for the payment of pensions by means of pension warrants, the encashment of which shall be subject to such condition as the Manager may prescribe and which shall be reflected on the warrants.

(b)The payment of a pension by means of warrants shall be made monthly and not earlier than a date to be determined by the Manager, which date shall be reflected on the warrants.

(3)In the case of a pension payable to the Master of the High Court for deposit in the Guardian's Fund on behalf of a pensioner, the Manager may waive compliance with all or any of the requirements prescribed in subrule (2).

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History of this document

01 September 2024 this version

Amended by Pension Funds Amendment Act, 2024

11 November 2005

Amended by Transnet Pension Fund Amendment Act, 2007

Read this version

01 November 2000

Amended by Transnet Pension Funds Amendment Act, 2000

Read this version

22 May 1991

Amended by Transnet Limited Amendment Act, 1991

Read this version

01 October 1990

Commenced by Transnet Pension Fund Act, 1990: Commencement

29 June 1990

Published in Government Gazette 12562

Read this version

21 June 1990

Assented to

Cited documents 17

Act 17

1.	Criminal Procedure Act, 1977	3734 citations
2.	Public Finance Management Act, 1999	2218 citations
3.	Labour Relations Act, 1995	1973 citations
4.	Companies Act, 2008	1880 citations
5.	Income Tax Act, 1962	1621 citations
6.	Pension Funds Act, 1956	1534 citations
7.	Medical Schemes Act, 1998	413 citations
8.	Trust Property Control Act, 1988	303 citations
9.	Long-term Insurance Act, 1998	295 citations
10.	Tax Administration Act, 2011	261 citations
11.	Legal Succession to the South African Transport Services Act, 1989	244 citations
12.	Divorce Act, 1979	222 citations
13.	Rules Board for Courts of Law Act, 1985	197 citations
14.	Financial Sector Regulation Act, 2017	120 citations
15.	Maintenance Act, 1998	114 citations
16.	Insurance Act, 2017	52 citations
17.	Transnet Pension Funds Amendment Act, 2000	10 citations

Documents citing this one 23

Gazette 19

1.	South Africa Government Gazette Regulation Gazette dated 1993-01-22 number 14536
2.	South Africa Government Gazette Regulation Gazette dated 1993-04-16 number 14735
3.	South Africa Government Gazette Regulation Gazette dated 1993-07-23 number 15000
4.	South Africa Government Gazette Regulation Gazette dated 1999-12-24 number 20719
5.	South Africa Government Gazette dated 1990-09-28 number 12764
6.	South Africa Government Gazette dated 1992-02-14 number 13767
7.	South Africa Government Gazette dated 2000-05-29 number 21214
8.	South Africa Government Gazette dated 2000-12-01 number 21817
9.	South Africa Government Gazette dated 2000-12-15 number 21918
10.	South Africa Government Gazette dated 2006-09-01 number 29181
11.	South Africa Government Gazette dated 2006-10-12 number 29303
12.	South Africa Government Gazette dated 2007-07-13 number 30067
13.	South Africa Government Gazette dated 2007-09-07 number 30270
14.	South Africa Government Gazette dated 2010-12-24 number 33899
15.	South Africa Government Gazette dated 2011-12-08 number 34829
16.	South Africa Government Gazette dated 2016-02-08 number 39665
17.	South Africa Government Gazette dated 2017-07-13 number 40977
18.	South Africa Government Gazette dated 2020-10-02 number 43758 part 1
19.	South Africa Government Gazette dated 2024-07-23 number 50968

Judgment 4

1.	Chirwa v Transnet Limited and Others [2007] ZACC 23 (28 November 2007)	48 citations
2.	Pretorius and Another v Transport Pension Fund and Another [2018] ZACC 10 (25 April 2018)	13 citations
3.	Ndwandwe v Trustees of Transnet Retirement Fund and Others (D3438/2020; D7381/2020) [2023] ZAKZDHC 9 (22 February 2023)
4.	Transnet Second Defined Benefit Fund v Wood (21875/21) [2022] ZAGPJHC 1123 (10 November 2022)

Transnet Pension Fund Act, 1990

Act 62 of 1990

Taxonomies

Related documents

Transnet Pension Fund Act, 1990

Act 62 of 1990

1. Definitions

1A. Application of Act

2. Continued existence and change of name of Transnet Pension Fund

3. Obligations payable from revenue

4. Determination of obligations and rights of certain members

4A. Division of Transport Pension Fund into subfunds

5. Rules of Transport Pension Fund

6. Actuarial valuation of Transport Pension Fund

7. Withdrawals and deductions from member’s pension benefits

7A. Payment of pension interest upon divorce or dissolution of marriage according to tenets of religion

8. How pensions from Transport Pension Fund are affected by insolvency

9. Recovery of certain debts owing to the employer from benefits payable to members on their dismissal or retirement and in certain other circumstances

10. Application of benefits in liquidation of debts in respect of dwelling-houses

10A. Housing loan schemes involving financial support from designated retirement fund

11. Recovery of amounts in respect of medical scheme

11A. Recovery of other amounts due by member of designated retirement fund

12. Guarantee

13. Registration and application of Pension Funds Act, 1956

14. Membership of funds

14A. Powers of Transnet to establish pension funds

14B. Establishment of Second Fund

15. Repeal of laws

15A. Minister's powers to make regulations

16. Short title and commencement

Schedule

Rules

History of this document

01 September 2024 this version

11 November 2005

01 November 2000

22 May 1991

01 October 1990

29 June 1990

21 June 1990

Related documents

Is amended by

Is commenced by

Cited documents 17

Act 17

Documents citing this one 23

Gazette 19

Judgment 4