SOUTH AFRICA - The Association of Retired Persons and Pensioners (ARPP) has aligned itself with the Congress of South African Trade Unions (Cosatu) by agreeing that pensioners should get first rights to pension fund surpluses once the new pension fund bill is passed.
ARPP’s latest statement follows on the heels of a Cosatu-led delegation, which addressed the finance portfolio committee in parliament on legislation dealing with pension surplus.
The Pension Funds Second Amendment Bill proposes to give employers, pension fund members and former members rights over the R80bn ($9.5bn) in surplus.
ARPP pensions specialist Nick de Villiers appealed for the restoration of pensions, with increases that are equal to the rate of inflation from the date of commencement of the pension to the date of the liquidation of the funds.
De Villiers said that all pensions should be granted 100% of the consumer price index from date of retirement before any distribution of surplus takes place.
By Janet Du Chenne
This week's edition of Professional Pensions is out now
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