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
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers