Transnet clock ticks after court win for pensioners
The pensioners were promised they would receive the same benefits under Transnet as they did under then South African Transport Services, in 1989
State-run transport and logistics company Transnet and two of its pension funds have 20 days within which to file a plea in answer to the class action claim by about 60‚000 pensioners. This came as the pensioners achieved victory at the Constitutional Court on Wednesday when it upheld their claim to recover billions owed to them. In 2013‚ the pensioners instituted a class action against the Transport Pension Fund‚ the Transnet Second Defined Benefit Fund and Transnet, based on a promise made to them in 1989 that they would receive the same benefits under a commercial entity‚ Transnet‚ as under the state entity that employed them until then‚ the South African Transport Services (SATS), and its two pension funds. The promise was that the practice of annually increasing members’ pensions by at least 70% of the rate of inflation would continue. The pension funds kept the promise until 2002‚ when they failed to grant any increases above the minimum 2% a year. The pensioners had calculate...
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