Pensioners fume as new Transnet board drags heels on bonus payment

Transnet’s beleaguered pensioners have accused the parastatal’s newly appointed board of delaying Transnet Second Defined Pension Fund (TSDBF) bonuses payment to benefit 50 000 pensioners.
John Benwell, who represents pensioners on the board of trustees and has been a gladiator for their cause, said pensioners have been waiting on the bonus payout from July this year, but the board has still not signed off the bonus.

Proceed to Source : IOL

“The board of the pension fund makes a decision to pay a bonus, the money is available to pay the bonus. We have put aside money and it is ready to be paid to pensioners.

“We cannot do this because it has to be approved by Transnet’s board. We have been waiting for that decision.

“Fifty-thousand pensioners are waiting on that decision. We made the decision in June to pay the money in July. We have been waiting since July for the decision from Transnet. They have not indicated why the approval is being delayed. We can’t get any information out of them,” said Benwell.

The TSDBF was one of three funds that grew out of the then Transnet Pension Fund. The TSDBF originally had more than 100000 members but they have been gradually dying off.

The fund has limited increases on pensions to 2% a year since its inception in November 2000, way below the inflation rate.

The board receives proposals from the trustee, and makes the final step in approving the bonus payment.

The fund’s principal officer Peet Maritz, however, said the board would communicate to the trustees and pensioners once a decision was made on the matter.

“The Transnet board, if I am correct, met on September 5. The matter was before them and as the fund we are awaiting the outcome of their deliberation,” said Maritz.

A frustrated pensioner, David Price, said the waiting has been a long one and the pensioners needed the matter to come to a close, and receive their bonuses.

“We are now sitting on a surplus of R4.5 billion. Our trustees have proposed that we get a 15% annual salary bonus. This was for July but it did not come through.

“People are having a hard time, they are needy pensioners. This goes to the whole 50000 of them,” added Price.

Transnet board chairperson Popo Molefe said: “It is not true that Transnet board is withholding bonus payment.

“The process is undergoing necessary governance procedures and the fund trustees are kept updated,” explained Molefe.

 

 

 

Recession? Caution! We have been here before.

Ignore anyone who tells you that Panic! is a good strategy.

Newspaper headlines might scream that South Africa has “plunged” into a recession, but it seems more realistic to say we “slipped” into a recession the country has been grappling with for a while.

Steven Nathan, 10X Investments chief executive, said this should not come as a surprise to anyone, much less a shock.

Continue to Source : Daily Maverick

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Automated investment advice

South Africa’s asset management industry manages more than R7.8 trillion of the nation’s savings and investments, according to the Association for Savings and Investment South Africa. Every cent belongs to someone who worked for it and will rely on it at some point in the future.

To ensure that people’s investments and savings are well taken care of, the health and continued development of the local asset management industry is vital.

Proceed to Source : MoneyWeb

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OPINION: Investing through the global chaos

JOHANNESBURG – Geopolitical issues, a global trade war, local political uncertainty and a struggling economy have made it difficult for investors to navigate investment markets.

It seems chaos is the new norm, and South African consumers are struggling to balance their budgets as inflation rises, food prices are increasing, the petrol price is at a record high and household debt levels remain elevated.

When there is “doom and gloom” all around, what should investors do when things around them seem to be in chaos?

Proceed to Source : IOL

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Liberty enhances governance of its Unclaimed Benefits Funds

Liberty Corporate is pleased to announce the appointment of Mr Douglas Maila and Mr Jerry Mnisi as independent trustees of the group’s Unclaimed Benefits Funds (the Funds). These highly respected individuals bring with them a wealth of industry experience and will enhance the corporate governance of the Funds.

Mr Maila is a well-known and esteemed former unionist who served as a member elected trustee of the Kimberly Clark Provident Fund for 15 years. He has been instrumental in highlighting the plight of retirement fund members and has played a role in educating communities on unclaimed and unpaid retirement fund benefits.

Proceed to Source : FANEWS

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How to stop your living annuity coming to an end before you do

Retirees make mistake of adjusting income drawdown to inflation not to investment returns.

Many retirees are attracted to living annuities as an option once they retire. Living annuities have many advantages: they offer flexibility of investment choice, you choose how much income you want to draw within certain limits, and your investment can be bequeathed to your beneficiaries on your passing.

However, they offer no longevity protection, and it is not uncommon to read about living annuitants being left destitute and having to rely on the government or family for an income in their old age.

Proceed to Source : BusinessLive

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Fund managers and their fees

The growing international popularity of tracker funds helps to explain why SA investors are paying more.

The SA fund management industry is sophisticated, professional, internationally adept … and expensive. The question is whether this expense is justified and if not, are the costs of investing the hard-earned cents of retirees coming down?

In some ways, the second part of the question is the easiest to answer; costs are coming down and respectably fast. Part of the reason is that the SA industry is tightly bound to trends in the international industry, and the megatrend internationally has been a drop in the cost of investing.

Proceed to Source : BusinessLive

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Amendment to tax law will inhibit saving, investment body warns

An amendment to the Income Tax Act proposed by the Treasury would have a negative effect on saving in SA, the Association for Savings and Investment SA (Asisa) argued in parliament on Tuesday.

“It will undermine policy consistency, negatively differentiate SA from collective investment scheme taxation in other jurisdictions, encourage withdrawals in favour of less regulated saving and promote externalisation to foreign collective investment schemes,” Asisa deputy chairman Thabo Khojane said in a submission to parliament’s finance committee during public hearings on the draft Taxation Laws Amendment Bill.

Proceed to Source : BusinessLive

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The fight against Gupta Inc moves to the computer server rooms of Regiments Capital

A civil seizure warrant is being executed on the premises of Regiments Capital, the financial services company accused of being central to the Gupta wave of State Capture, for contracts and electronic records relating to payments to a Bank of Baroda account, any communication with members of the Gupta family or their kingpin, Salim Essa and various “supplier development partners” and Gupta front companies.
The Transnet Second Defined Benefit Fund obtained an Anton Piller order at the High Court in Johannesburg that allows for a wide-ranging search and seizure of key “evidence” in its ongoing legal case against several companies in the Regiments stable.

Scorpio has confirmed that commencement of the execution of the order has begun at at the Illovo, Johannesburg, office of Regiments under the supervision of a court-appointed independent supervising attorney. Regiments declined to comment. The search is restricted to business hours.

Proceed to Source : Daily Maverick

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Unit Trusts: The Next Tax Target?

Treasury has proposed legislation on taxing Collective Investment Schemes (CIS), more commonly known as unit trusts. The tax amendment aims to tax realised profits (made from selling an asset) that were generated within 12 months of the purchase of the asset/instrument. These profits will then be distributed to investors and taxed as income.

The current situation
There has been a debate about the unequal treatment of tax between CIS and other industries. The profits that individuals or other industries generate are taxed as income if the asset was held for less than 12 months (deemed profit in nature) and as capital gains tax for longer investment periods (seen as capital appreciation from long-term investment). An investor putting money in a CIS would have only been liable for capital gains tax on redemption of the investment, thereby taxing both short term and long-term profits as capital gain. This is significant since an initial amount of capital gain is exempt from tax and the excess is taxed at a lower rate, 40% of the marginal income tax rate.

Proceed to Source : ShareNet

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