Date: 19/06/2003
Source: Ministry of Finance
Title: Mpahlwa: Special Pensions Amendment Bill, NA
SPECIAL PENSIONS AMENDMENT BILL (B35B-2002): SPEECH TO THE NATIONAL ASSEMBLY BY THE DEPUTY MINISTER OF FINANCE, MANDISI MPAHLWA, 19 June 2003
Madam Speaker
Honourable members
Madam Speaker, let me begin by reminding honourable members that this House adopted a very "special" and important piece of legislation in November 1996, the Special Pensions Act (Act No. 69 of 1996). The primary objective of the legislation is to provide for the payment of special pensions to persons (or their eligible dependants) who made sacrifices or served the public interest in the cause of establishing a non-racial democratic constitutional order in the Republic of South Africa. These are the people who as a result of their devotion to the struggle for a free and democratic South Africa, were prevented from providing for their own pension. The implementation of this Act has had and continues to have a significant impact on the lives of many deserving people in our country.
Members would again recall, that, in 1998 the House adopted an amendment to this legislation to improve the delivery of benefits under this Act.
Madam Speaker, today we table a second round of amendments to this legislation which deals exclusively with administrative matters, in order to facilitate and expedite the ongoing implementation of the Act. We will, however, be tabling further amendments soon to introduce certain policy changes that are required to bring to finality the implementation process and to ensure full achievement of the primary aim of the Act.
The main objectives of this amendment Bill before the House today are as follows:
* To allow the Special Pensions Board to condone "late applications" (i.e. applications received after the closing date contemplated in the Act). This will open an opportunity for all persons who meet the qualification criteria as prescribed by the Act, but were left out because of the cut-off date for submitting applications.
* To clarify the Special Pensions Review Board's discretion to condone "late requests" for the review of decisions of the Board. This is necessary since the current wording is misleading and caused a misinterpretation of the Act by the Review Board. The result of such misinterpretation is that the Review Board took a decision to condone "late applications" to the Board for benefits, which were subsequently approved by the Board and benefits were granted. The Bill also intends to validate such condonation of "late applications" by the Review Board and the subsequent decisions taken by the Board on such condoned applications.
* To prescribe the quorum for any meeting of the Board. The Act requires that the Board be established with 5 members but it does not provide guidelines as to what constitutes a quorum for the purpose of regularising meetings of the Board.
* To remove the limitation of the Board's existence to four years after the commencement date of the Act, and to validate the continued operation of the Board. This is necessary since the Board has not yet completed its activities. The Board will cease to exist as soon as it has completed its activities.
* To remove the requirement that one member of the Review Board must be an actuary. This will save the costs of paying an actuary to sit on every appeal because the review process does not require actuarial expertise. The normal three-year cycle actuarial valuation of the entire special pensions scheme (like other pension schemes) will still be performed, and this is separate from the review process. Furthermore the Review Board may seek actuarial advice on an ad hoc basis if necessary.
* To amend the definition of "military service" so as to include military service or training performed or undergone in the former non-statutory forces (i.e. the military forces of the former banned political organisations as contemplated in the Special Pensions Act). The current definition excludes persons who performed military service or undertook military training in the former non-statutory forces but are not entitled to special pensions benefits.
* Lastly, the Bill seeks to effect technical corrections and to provide for the retrospective effect of certain amendments so as to ensure the smooth running of administration, the effective and efficient processing of applications for benefits.
Madam Speaker, I hereby present the Special Pensions Amendment Bill B35B-2002 for consideration and adoption by the House.
Thank you.
Issued by Ministry of Finance
19 June 2003
Source: Ministry of Finance
Title: Mpahlwa: Special Pensions Amendment Bill, NA
SPECIAL PENSIONS AMENDMENT BILL (B35B-2002): SPEECH TO THE NATIONAL ASSEMBLY BY THE DEPUTY MINISTER OF FINANCE, MANDISI MPAHLWA, 19 June 2003
Madam Speaker
Honourable members
Madam Speaker, let me begin by reminding honourable members that this House adopted a very "special" and important piece of legislation in November 1996, the Special Pensions Act (Act No. 69 of 1996). The primary objective of the legislation is to provide for the payment of special pensions to persons (or their eligible dependants) who made sacrifices or served the public interest in the cause of establishing a non-racial democratic constitutional order in the Republic of South Africa. These are the people who as a result of their devotion to the struggle for a free and democratic South Africa, were prevented from providing for their own pension. The implementation of this Act has had and continues to have a significant impact on the lives of many deserving people in our country.
Members would again recall, that, in 1998 the House adopted an amendment to this legislation to improve the delivery of benefits under this Act.
Madam Speaker, today we table a second round of amendments to this legislation which deals exclusively with administrative matters, in order to facilitate and expedite the ongoing implementation of the Act. We will, however, be tabling further amendments soon to introduce certain policy changes that are required to bring to finality the implementation process and to ensure full achievement of the primary aim of the Act.
The main objectives of this amendment Bill before the House today are as follows:
* To allow the Special Pensions Board to condone "late applications" (i.e. applications received after the closing date contemplated in the Act). This will open an opportunity for all persons who meet the qualification criteria as prescribed by the Act, but were left out because of the cut-off date for submitting applications.
* To clarify the Special Pensions Review Board's discretion to condone "late requests" for the review of decisions of the Board. This is necessary since the current wording is misleading and caused a misinterpretation of the Act by the Review Board. The result of such misinterpretation is that the Review Board took a decision to condone "late applications" to the Board for benefits, which were subsequently approved by the Board and benefits were granted. The Bill also intends to validate such condonation of "late applications" by the Review Board and the subsequent decisions taken by the Board on such condoned applications.
* To prescribe the quorum for any meeting of the Board. The Act requires that the Board be established with 5 members but it does not provide guidelines as to what constitutes a quorum for the purpose of regularising meetings of the Board.
* To remove the limitation of the Board's existence to four years after the commencement date of the Act, and to validate the continued operation of the Board. This is necessary since the Board has not yet completed its activities. The Board will cease to exist as soon as it has completed its activities.
* To remove the requirement that one member of the Review Board must be an actuary. This will save the costs of paying an actuary to sit on every appeal because the review process does not require actuarial expertise. The normal three-year cycle actuarial valuation of the entire special pensions scheme (like other pension schemes) will still be performed, and this is separate from the review process. Furthermore the Review Board may seek actuarial advice on an ad hoc basis if necessary.
* To amend the definition of "military service" so as to include military service or training performed or undergone in the former non-statutory forces (i.e. the military forces of the former banned political organisations as contemplated in the Special Pensions Act). The current definition excludes persons who performed military service or undertook military training in the former non-statutory forces but are not entitled to special pensions benefits.
* Lastly, the Bill seeks to effect technical corrections and to provide for the retrospective effect of certain amendments so as to ensure the smooth running of administration, the effective and efficient processing of applications for benefits.
Madam Speaker, I hereby present the Special Pensions Amendment Bill B35B-2002 for consideration and adoption by the House.
Thank you.
Issued by Ministry of Finance
19 June 2003
Advertisement
EMAIL THIS ARTICLE SAVE THIS ARTICLE FEEDBACK
To subscribe email subscriptions@creamermedia.co.za or click here
To advertise email advertising@creamermedia.co.za or click here
