Update December 2019

December 2019

13 December 2019 PRESS RELEASE 

ANNOUNCEMENT: TSDBF AND TPF PENSIONERS’ CLASS ACTION

The parties to the class action litigation have signed a comprehensive settlement agreement that will see benefits accruing to pensioners from December 2019.

The settlement agreement entered into between Transnet, the Funds, the Class Representatives and their attorneys arises from years of extensive negotiations. The settlement agreement provides substantial benefits to all members of the Funds.

The settlement agreement was entered into without the admission of any liability by Transnet and the Funds. It seeks to give further recognition to the hard work of many of Transnet’s former employees and the former employees of Transnet’s predecessors. Even prior to the institution of the litigation, Transnet and the Funds have for many years considered multiple options to enhance the benefits payable to Transnet’s pensioners and the pensioners of Transnet’s predecessors. Some of those of the options that were considered, such as payments of bonuses and ex gratia bonuses were implemented but some, for reasons outside of the Parties’ control, could not be implemented. This settlement will make it possible for the benefits payable to pensioners to be enhanced lawfully and without transgressing the applicable rules.

The Parties to this Agreement believe that a compromise settlement is far preferable to all concerned than an inevitably lengthy and expensive litigation process, allowing for affected pensioners to expeditiously receive relief for their conditions.

It must be emphasized, however, that the signing of the relevant documentation does not mean finality has been reached. The implementation of the settlement is subject to certain suspensive conditions, which include the agreement being approved by the Court, amendment of the respective rules of the TPF and the TSDBF by the Minister of Public Enterprises (with the concurrence of the Minister of Finance) (which also requires some employer approvals) and the adoption by the boards of the TPF and the TSDBF of pension increase policies required to give effect to this Agreement. Even if all the conditions to the agreement are not yet met, each pensioner will be paid an amount of R10,000.00 (less any tax) during December 2019. The exception to this, however, is the pensioners of the SAA Sub-fund of the TPF, who will be paid after the necessary company approvals required for the payment have been given.

The parties’ respective legal teams are working together to prepare for the approval hearing which is likely to be held in the Pretoria High Court during April 2020, where the Court will be asked to consider the settlement agreement and to approve it. The members of the Class and other interested parties will be given the opportunity to make submissions to the Court about the terms of the settlement agreement before then, should they wish to do so. Further communication on these processes will follow in early 2020.

The Parties believe the settlement represents a fair outcome for the Class.