The United National Transport Union (UNTU) would like to update all Transnet employees on the developments to amend the rules of the Transnet Retirement Fund to allow Transnet employees to obtain a pension backed surety from the Transnet Retirement Fund to use when they want to apply for a home loan.
A Task Team established by the Transnet Executive to identify and decide on a third partner which will have to be a bank in terms of the Banking Act who will be willing to enter into a memorandum of understanding (MOU) to provide the surety, will meet for the first time on 20 January 2020.
UNTU President Hendrik Fourie and Vice-President Trevor Wasserfall will represent our members on the Task Team.
Peet Maritz, Chief Executive Officer of the Transnet Retirement Fund, says after the Task Team managed to identify a third party and to sign a MOU, the proposal must be submitted to the Board of Transnet to approve before any Rules of the Transnet Retirement Fund can be amended to allow Transnet employees to obtain the surety from the Fund.
According to Maritz it is “still very early days”.
Wasserfall says UNTU members must not confuse the proposed Pension Funds Amendment Bill which the media are currently reporting on, with the Transnet Retirement Fund Act. The Transnet Retirement Fund is governed by its own Act and the proposed Pension Funds Amendment Bill will not affect Transnet employees in any way.
There is a lot of legal provisions that the Transnet Retirement Fund will have to adhere to before it can apply to Parliament to make amendments to the Transnet Retirement Fund Act to allow Transnet employees to make loans and/or do withdrawals against their pension fund.
The fund will have to apply to be registered as a deposit taking institution with the Financial Sector Conduct Authority (FSCA) to adhere to the provisions of the Banking Act.
The newly establish Task Team will also investigate these avenues and make recommendations to the Board of Transnet.
UNTU will continue to keep its members abreast of any developments.
S Carstens: Media, Liaison and Communication Office
o. b. o SA Harris