Transnet pensioners take plea to Concourt

ABOUT 60 000 Transnet pensioners have pinned their hopes on the Constitutional Court as they seek to proceed with a class action targeting billions or rands from two pension funds.

Yesterday, the court heard their appeal against a Pretoria High Court order from last year.

Transnet pension fund recipients brought a lawsuit against the Transport Pension Fund and the Transnet Second Defined Benefit Fund and Transnet in the high court last year.

The pensioners wanted the court to declare that the pension funds and Transnet had broken a promise made in 1989, before the South African Transport Services became Transnet.

The promise was that the practice of increasing members’ pensions annually by at least 70% of the rate of inflation would continue.

The pensioners claim that since 2003‚ the funds’ annual increase to their pension was significantly lower than what had been promised.

They want Transnet and the pension funds to pay the arrear increases to the pensioners with interest.

Transnet and the pension funds raised objections to the claim in the high court last year.

They claimed that there was a failure to identify the terms of the promise made by Transnet. The high court agreed with Transnet. Wim Trengove SC‚ for the pensioners‚ argued before the Constitutional Court yesterday that the pensioners pleaded for all the terms of the promise.

The court reserved judgment.