Chairman, a large portion of South African citizens has the same objective in life and that is to contribute to a secure pension fund that will provide for their needs when they go on pension. They are honest, law-abiding citizens who work hard in often very difficult circumstances for the day they can sit back and enjoy life as a senior citizen, knowing they have secured monetary provisions to cater for their everyday needs.
It is therefore not strange that it is expected of government to provide a framework to organise the pension fund industry to ensure that the savings and livelihood of members of pension funds are secured.
Voorsitter, bestaande wetgewing moet van tyd tot tyd aangepas word om aan die hedendaagse uitdagings en omstandighede te voldoen en om te verseker dat lede van pensioenfondse seker kan wees van hul regmatige voordele wat hulle toekom.
Daar is ongelukkig voorbeelde waar afgetredenes krepeer van die ellende en armoede, ongeag die verwagtings wat hulle gekoester het vir 'n sorgelose oudag. Baie van hulle is nou die staat se verantwoordelikheid. Dit is ons plig as Parlement om te verseker dat hul beste belange deurentyd vooropgestel word.
Die primre doel van die wetsontwerp is juis om verdere ondersteuning en stukrag te gee aan die optimale en volhoubare beskerming van die belange van huidige en oudlede van pensioenfondse. Die voorgestelde veranderinge is baie dringend, hoewel grootliks tegnies en administratief van aard. Dit spreek nie net die bestaande voorsienings in die wet beter aan nie, maar bring dit ook in ooreenstemming met bepalings en toepassings in ander verwante wette. Dit bring duidelikheid oor die voorsienings en verklarings van surplusfondse in die bestaande wetgewing.
Uit die interaksies van die komitee met verskeie relevante bedryfsrolspelers en geaffekteerdes is dit duidelik dat die voorgestelde veranderings apart gesien moet word van die beloofde hervormingsproses van pensioenfondse en die sogenaamde "social security" stelsel. (Translation of Afrikaans paragraphs follows.)
[Chairperson, existing legislation has to be amended from time to time to measure up to present-day challenges and circumstances and to ensure that members of pension funds can be assured of the rightful benefits that are their due.
There are unfortunately examples where retired persons find themselves destitute, in spite of the hopes they cherished for a carefree old age. Many of them are now the state's responsibility. It is our duty as Parliament to ensure that their best interests are constantly placed first.
The primary purpose of this Bill is precisely to give further support and momentum to the optimal and sustainable protection of the interests of existing and past members of pension funds. The proposed amendments are very urgent, though primarily of a technical and administrative nature. Not only does it address the existing provisions in the Act more appropriately, but it also fits in with the provisions and applications of other related Acts. It sheds light on the provisions and declaration of surplus funds in existing legislation.
From the interaction of the committee with several other relevant role- players in the industry and those affected by it, it is clear that the proposed amendments should be viewed separately from the promise of a pension fund reform process and the so-called "social security" system.]
The objective of this amendment Bill is to protect the pension interest of existing and past members. For instance, it clarifies the apportionment of the surplus utilised improperly in terms of section 15(b) of the Act. The amendments will provide clarity to boards of trustees responsible for apportioning surplus funds and to close loopholes that allow for creative interpretations that was not the intention with the Pension Funds Second Amendment Act.
It brings the regulations of retirement funds established through bargaining council arrangements under the regulatory auspices of the Registrar of Pension Funds. It addressed the required powers of the registrar to increase regulatory effectiveness. It addresses the specific duties of pension fund administrators and clarifies the jurisdiction of the pension fund adjudicator. It also brings clarity on how to deal with divorce orders and maintenance claims in respect of pension fund benefits and it aligns the Act to accommodate the changes in regulatory policy and practical considerations.
Van die grootste uitdagings vir die komitee was vir seker die evaluering en beoordeling van die uiteenlopende insette deur verskillende bedryfsrolspelers. Kontroversieel was vir seker die bepalings dat kapitaal van pensioenfondslede oorgeplaas kan word van tradisionele of onderskryfde pensioen- en annuteitsfondse na die sogenaamde nie-onderskryfde fondse. In so 'n geval sal fondse waarvan reeds vooraf volle kommissie verhaal is, oorgeplaas word na fondse waarop daar deurlopende koste verhaal sal word op grond van die verdienste van die fonds of soos met die lede van die fonds ooreengekom is.
Die terugwerkende beginsel van verdeling van pensioenfondsreserwes, soos vervat in hierdie wetsontwerp, kan lei tot duur en uitgerekte hofsake wat selfs tot in die Konstitusionele Hof beveg kan word. Hoewel die aanwending van die fondsreserwes nie in die verlede noodwendig teen die rels van die betrokke fonds of die bepalings van die finansile diensteraad was nie, kan die terugwerkende beginsel by die aanvaarding van die wet impliseer dat sekere aanwendings in die verlede nou as onvanpas en onrelmatig verklaar word. Dit kan die gevolg inhou dat sekere multinasionale organisasies nou baie onbegrote en onbeplande miljoene rande tot die betrokke pensioenfondse moet bydra, wat 'n negatiewe impak op die prestasies van die organisasies en moontlike beleggings kan beteken.
Ons moet egter onthou dat dit reserwes is wat verdien is op die bydraes van die spesifieke lede, maar aan wie dit nie noodwendig toegedeel is nie en dus nie die voordeel gekry het nie. Behalwe dat die wetsontwerp handel oor die finansile voorspoed van pensioenfondslede moet ons ook nie die morele relevansie hiervan uit die oog verloor nie.
Pensioenfondstrusts en - trustees steun hierdie wetsontwerp en was sulke voorleggings ook in die komitee gemaak. Hoewel die DA sensitief is vir veral die korttermyn ekonomiese impak op veral multinasionale organisasies, het ons geen twyfel dat die inhoud en die bepaling van hierdie wetsontwerp geregverdig is nie en dat dit sal lei tot die verbetering van die lewenskwaliteit van baie pensioenfondslede. (Translation of Afrikaans paragraphs follows.)
[Some of the greatest challenges for the committee were certainly to evaluate and review the diverse inputs from various role players in the industry. The provisions that were certainly controversial were those which stipulate that pension fund members' capital can be transferred from traditional or underwritten pension and annuity funds to the so-called non- underwritten funds. In this instance funds on which the full commission has already been recovered beforehand will be transferred to funds from which continuous costs will be recovered on the basis of the earnings of the fund or as agreed upon with the members of the fund.
The retrospective principal of apportioning pension fund reserves, as contained in this Bill, could lead to costly and drawn-out lawsuits that could even be contested right up to the Constitutional Court. In the past, even though the appropriation of fund reserves did not necessarily contravene the rules of the relevant fund or the regulations of the Financial Services Board, the retrospective principle could, with the passing of the Act, imply that certain appropriations of the past could now be declared inappropriate and irregular. This could result in certain multinational organisations now having to contribute millions of unbudgeted and unplanned for rands to the relevant pension funds, which could have a negative impact on the performance of the organisations and possible investments.
However, we must remember that these reserves have been earned from the contributions of specific members to whom it was not necessarily apportioned and therefore they could not benefit from it. Except for the fact that the Bill deals with the financial wellfare of members of pension funds, we must also not lose sight of its moral relevance.
Pension fund trusts and trustees are supporting this Bill and such submissions were also made to the committee. Although the DA is particularly sensitive to the short-term economic impact on multinational organisations in particular, we have no doubt that the contents and the provisions of this Bill are justifiable and that it will lead to the improvement of the quality of life of many members of pension funds.]
I want to express my appreciation again to National Treasury and the Portfolio Committee on Finance for the thorough and decisive way that this Bill and the various submissions were interrogated and the transparent manner in which we could interact with the specialists from Treasury. The DA supports this Bill. I thank you. [Applause.]