The United National Transport Union (UNTU) took note of the misleading notice for a so-called “Pension Fund Loan Proposal” that has been circulated to members of the South African Transport and Allied Workers Union (SATAWU) to indicate if they support this.
Hendrik Fourie, President of UNTU who serves on the Board of Trustee of the Transnet Retirement Fund (TRF), says this notice creates the wrong impression that Transnet Employees can make a loan against their retirement fund savings in these difficult times to pay their debt.
“The TRF is not governed by the Pension Funds Act like private sector pension funds and certain public sector pension funds. The TRF is governed by the Transnet Pension Fund Act and its rules.
The rules have the force of legislation. Its governance is overseen by the Board of Trustees. All the participating employers in the TRF are public entities that are subject to the Public Finance Management Act.
“According to the rules of the TRF no pension or lump sum from the fund, or right to such a benefit, can be assigned or transferred or otherwise ceded, or of being pledged or hypothecated, or attached or subjected to any form of execution under a judgment or order of a court of law.
“The TRF is not in a position to make loans to members or to make financial arrangements with employer companies,” says Fourie.
Over the past two years UNTU and the TRF have driven a proposal for members to take out a pension-backed housing loan instead of using a mortgage bond to finance a property.
This has been approved by the Board of Trustees of the TRF, but the Board of Transnet has not yet approved the proposal.
If it is approved, the Transnet Pension Fund Act has to be amended and the amendments must be tabled in Parliament for the approval of the National Assembly and the National Council of Provinces before it will be send to the President to sign off before it is promulgated as an Amendment Act.
UNTU members will be informed on any developments in this regard.
“The outbreak of the COVID-19 pandemic and implementation of the National Disaster Management Act to combat the spreading of the virus, has put additional financial strain on Transnet employees, especially low-income households.
“UNTU realise that families are desperate, but with the global markets currently at an all-time low, employees would be shooting themselves in the foot if they touch their hard-earned retirement money after the value thereof dropped dramatically in recent months.
“The only way employees can withdraw their retirement money is if they resign from Transnet.
This is also not an option with the unemployment figure at 29% and predictions of mass retrenchments in other industries.
“I appeal to members to seek advice from the variety of financial institutions assisting UNTU members.
Members who seek professional advice, must please send an e-mail to enquiries@untu.co.za so that they can be referred.”
Esteemed greetings,
Hendrik Fourie
UNTU PRESIDENT
