The United National Transport Union (UNTU) has explored several suggestions from its members after requests from its
members to approach the Transnet Retirement Fund (TRF) to allow contributing members to make loans against their pension
In UNTU’s previous circular letter on this issue dated 30 April 2020 it was explained to members that the TRF is not allowed
to loan a lump sum of money to anyone as 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 to make provision for it.
Hendrik Fourie, President of UNTU who represents UNTU members on the Board of Trustees of the TRF, says several other stumble blocks where discovered because the fund is not a registered financial service provider as the Pension Funds Act demands.
This means the TRF is not legally or otherwise permitted to provide loans and financial assistance to
its members. According to the Financial Sector Regulation Act and the Banks Act regulates the financial services
sector to protect clients.
The National Credit Regulator (NCR) is responsible for the regulation of the South African credit industry. The NCA requires the NCR to promote the development of an accessible credit market, particularly to address the needs of historically disadvantaged persons, low income persons and remote, isolated or low-density communities.
“Any amendments to any of these acts protecting Transnet employees would take years to complete,” says Fourie.
UNTU will continue to communicate any developments to our members.