Issued by: Ministry of Finance
7 August 1996
SPECIAL PENSIONS BILL
The Cabinet today approved the Special Pensions Bill. The Bill gives effect to section 189 of the Constitution, which stipulates that provision must be made for special pensions to be paid to "persons who made sacrifices or served the public interest in establishing a democratic constitutional order."
The specific aim of the Bill is to address people who were unable to provide for their own pensions because:
- he/she suffered a permanent and total disability prior to 2 February 1990 arising out of being engaged full-time in the service of a political organisation as defined in the Bill; or - he/she was engaged, for a total or combined period of five years, in the service of a political organisation, prohibited, detained, imprisoned or banned in terms of any law mentioned in the Bill.
The Bill prescribes rules for determining the persons who are entitled to receive special pensions; it prescribes the benefit structure according to which pensions and death benefits will be paid; it establishes a Special Pensions Board and a Special Pensions Review Board and a Special Pensions Review Board, and it specifies the process for dealing with and adjudication of applications and awarding of pensions by the Special Pensions Board.
The Special Pensions Bill was published for comment in November 1995, and public hearings were held by the Joint Standing Committee on Finance in Cape Town, Bisho and Johannesburg. A National Co-ordinator and provincial co-ordinators have been appointed and have been laying the groundwork for the implementation of the Bill.
Pensions will be payable on a monthly basis, commencing on the first day of the month during which a person reaches the age of 60. Pension payments will be backdated to the 1st April 1995. A pensioner who is at least 50 years of age may elect to receive the monthly pension at any time, in which event the pension will be reduced by 3% between the date of election and the age of 60 years.
A Special Pension Board will be appointed by the Minister of Finance in consultation with the President to adjudicate applica- tions. The Board will consist of a Chairperson and four members and be dissolved after a maximum period of two years. A Special Pensions Review Board, consisting of a judge of the Supreme Court as Chair and two other members, one of whom shall be an actuary, will also be appointed to review appeals lodged against decisions of the Special Pension Board.
In order to be considered for a special pension, a person will have to submit a prescribed application form, which is contained in the Bill, certified by a Commissioner of Oaths, to the board within one year of the Act coming into force. The Board will award pensions in terms of a benefit structure according to the age of the beneficiary and the years of service rendered to a political organisation as defined in the Bill. The Special Pension will not preclude beneficiaries from receiving a social or a military pension, and will not be subject to any means or asset able tests for purposes of social or military pensions.
Special Pensions will be administered and paid by the Department of Finance: Chief Directorate: Pensions Administration. An amount of R450 million for the payment of special pensions during the 1996/97 financial year is provided on the budget of the Department of Finance. It is impossible to give accurate figures at this stage as to the total cost, as the number of people who will qualify cannot be determined before the Board receives and adjudicates applications.
The Bill will now go to Parliament, and be tabled as soon as possible.
Contact: Jennifer Wilson Peet Maritz: 012 319 1269 012 323 8911 Pensions Administration 082 543 4715
Trevor Wentzel: 012 319 1040 National Co-ordinator: Special Pensions