Dear Pensioners,
In accordance with clause 24 of the rules of the TSDBF, the pension received by a pensioner or beneficiary immediately before each anniversary of the date on which the pension commenced shall be increased by 2% on that anniversary. Increases in excess of the 2% as indicated in the rules must be approved by Transnet as the principal employer.
Additionally, the rules determine that any increase in pensions as provided in clause 24 shall be subject to:
• The Fund being able to afford such increases according to the discretion of the Board;
• The actuary’s written confirmation that such increases are affordable by the Fund;
• The written approval by the Employer;
• The Board may consider the granting of additional pension increases (in addition to the 2% outlined above) from time to time.
The outcome of the class action instituted against the Funds and Transnet, resulted in a settlement which prescribed that the Fund should endeavour to provide pension increases of between 70% and 100% of inflation annually.
The CPI as at 31 March 2025 was 2.7%. However, the Board considered the financial plight of the pensioners and also the fact that several pensioners receive very small pensions. The investments of the Fund have also performed well over the last year.
The Board has, with the approval of Transnet, agreed to award the statutory 2% increase and an additional 1.5% increase.
Pensioners are to note that the deviation from the policy is an exception and while the Board endeavours to provide pensioners with the best at all times, the sustainability of the Fund is always considered foremost.
Kind Regards
TSDBF Board