Tellumat (Pty) Ltd v Appeal Board of the Financial Services Board (221/2015) [2015] ZASCA 202; [2016] 1 All SA 704 (SCA) (2 December 2015)

Tellumat (Pty) Ltd v Appeal Board of the Financial Services Board (221/2015) [2015] ZASCA 202; [2016] 1 All SA 704 (SCA) (2 December 2015)

The Supreme Court of Appeal found that the Appeal Board erred by failing to consider the distribution scheme as a whole, including the context of the trustees' agreement and the valid arbitration award upholding the surplus apportionment. The Appeal Board treated the guaranteed 3% annual pension increase and the application of section 15I on dissolution as isolated issues, disregarding the elections made by pensioners and the structure of the scheme. The court held that the Appeal Board's decision constituted a reviewable error under section 6(2)(e)(iii) of PAJA, as it failed to consider relevant factors and the impact of its decision on the agreed scheme. The court substituted its own...

Citation
[2015] ZASCA 202
Parties
Appellant: Tellumat (Pty) Ltd; Respondent: Appeal Board of the Financial Services Board; Respondent: C T Howie, D L Brooking and G O Madlanga NNO; Respondent: Alan Hunter Roy; Respondent: Registrar of Pension Funds; Respondent: Tellumat Pension Fund
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
2 December 2015
Case Number
221/2015
Procedural Posture
Civil Appeal / Appeal From Gauteng Division, Pretoria; Review of Administrative Decision
Outcome
Appeal upheld; decision of the Gauteng Division set aside and replaced.
Judges
Mpati, Leach, Wallis, Mathopo, Baartman
Legal Topics
Pension Funds Act, Apportionment of Surplus, Outsourcing of Pensions, Review of Administrative Action, Reasonable Benefit Expectations
Administrative Law Banking and Finance Pension Funds Act Apportionment of Surplus Outsourcing of Pensions Review of Administrative Action Reasonable Benefit Expectations

Case Brief

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Parties

Tellumat (Pty) Ltd

Appellant

Appeal Board of the Financial Services Board

Respondent

C T Howie, D L Brooking and G O Madlanga NNO

Respondent

Alan Hunter Roy

Respondent

Registrar of Pension Funds

Respondent

Tellumat Pension Fund

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division, Pretoria; Review of Administrative Decision

Legal Issues

  1. 1 Whether the Appeal Board erred in setting aside the Registrar's approval of the pension outsourcing scheme under section 14 of the Pension Funds Act.
  2. 2 Whether the Appeal Board failed to consider the distribution scheme as a whole and the impact of its decision on the agreed apportionment of surplus.
  3. 3 Whether the Appeal Board's decision constitutes a reviewable error under section 6(2)(e)(iii) of PAJA.

Ratio Decidendi

The Supreme Court of Appeal found that the Appeal Board erred by failing to consider the distribution scheme as a whole, including the context of the trustees' agreement and the valid arbitration award upholding the surplus apportionment. The Appeal Board treated the guaranteed 3% annual pension increase and the application of section 15I on dissolution as isolated issues, disregarding the elections made by pensioners and the structure of the scheme. The court held that the Appeal Board's decision constituted a reviewable error under section 6(2)(e)(iii) of PAJA, as it failed to consider relevant factors and the impact of its decision on the agreed scheme. The court substituted its own...

Court Disposition

Appeal upheld; decision of the Gauteng Division set aside and replaced.

Orders

  • The appeal is upheld.
  • The decision by the Gauteng Division, Pretoria is set aside and altered to read as follows: '(a) The decision by the Appeal Board of the Financial Services Board in the appeal by Mr Roy, the third respondent, against the decision by the Registrar of Pension Funds to approve, in terms of section 14 of the Pensions...