Transnet Pension Fund Amendment Act

1. Section I of the Transnet Pension Fund Act, 1990 (hereinafter referred to as the 5 principal Act), is hereby amended- (a) by the insertion before the definition of "Company" of the following definitions: " 'actuary' means an aetuary who is a IcIlow of an institute, faculty, society or c apter ot actuaries approved by the Minister of mance; 'alternative employer' means- (a) (b) a national public entity as defined in section I of the Public Finance the State; 10 (e) Management Act, 1999 (Act No. I of 1999); a company, the shares in which were transferred ti'om Transnetlo 15 the Slate or to an entity contemplated in paragraph (b) or (d), or an entity in which such company owns one or more shares; or (d) any other company in which the State or an entity contemplated in paragraph (b) owns one or more shares: Provided that after 11 November 2005- (n the Slate or any entity contemplated in paragraph (b) or (d) acquired a business contemplated in section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995), from Transnet or acquired shares in a company from Transnet; 20 (ii) at the date of such transaction, the business or company had in its 25 employ a person who was a member of any fund established in terms of this Act; and (iii) the State or any entity contemplated in paragraph (b), (c) or (d), as the case may be, is accepted as an alternative employer for the purposes of this Act in terms of an agreement between Transnet and 30 the Minister; 'alternative group of employers' means a principal employer other Ihan Transnet and an alternative employer in which the principal employer holds shares: Provided that if more than one principal employer owns shares in an alternative employer, employt:r falls within the alternative group of employers of the principal employer alternative employer;" ; the most shares owns that that in that alternative 35 by the deletion of the definition of "Company"; (b) (c) by the insertion before the definition of "employer" of the following 40 definition: " 'dependent pensioner', in relation to the Transport Pension Fund, means a person who is entitled to a pension paid by that fund as a result of the membership of that fund of a deceased member or a deceased pensioner;"; 45 (d) by the substitution for the definition of "employer" of the following definition: .. 'employer' means [the Company or any other company of which an employee is a member of the Fund] an employer within the Transnet group of employers or an employer within an alternative group of 50 employer&;"; 6 No. :;0270 OOVERNMENTGAZbTTE, 7 SEPTEMBER 2007 Act No. (i, 2007 TRANSNET PENSION FUND AMENDMENT ACT. 2007 (e) (f) by the deletion of the definition of "Fund"; by the insertion before the definition of "Minister" of the following definition: " 'general rules' means the rules contemplated in section 4A(9) and excludes the special rules;"; 5 (g) by the substitution for the definition of "Minister" of the following definition: "'Minister' means the [Minister 01 Mineral and Energy Affairs and Public Enterprises] shareholder Minister responsible for Transnct;"; (h) by the insertion afler definitions: the definition of "Minister" of the following 10 " 'pensioner', in relation to the Transport Pension Fund, means a person who is entitled 10 a pension paid by that fund resul(ing from his or her membership of that fund; 'principal employer' means- (a) Transnet; or (b) an alternative employer that is accepted as a principal employer for the purposes of this Act in terms of an agreement between Transnet and the Minister;"; 15 (i) by the substitution for the definition of "Rules" the following definition: 20 " 'Rules' means the Rules referred to in section 5 of this Act, comprising the general rules and all speciaJ rules;"; (j) (k) by the deletion of the definition of "Second Fund"; and by the insertion after the definition of "Rules" of the following definitions: .. 'special rules', in relation to the Transport Pension Fund, means those 25 rules of that und that apply to a su fund of that und only; 'subfund', in relation to the Transport Pension Fund, means that part of that fund- (a) to which members, pensioners, dependent pensioners, assets, rights and obligations are attributable in tenos of sections 4A(I), (2) and 30 (3); and (b) which is governed by special rules and general rules; 'subfund board', in relation to the Transport Pension Fund, means a board contemplated in section 4A(6)(a);"; 'subsidiary' means a subsidiary contemplated in section 1(3)(a) of the 35 Companies Act, 1973 (Act No. 61 of 1973); 'Transnet' means Transnet Limited, formed and incorporated in terms of section 2 of the Legal Succession to the South African Transport Services Act, 1989 (Act No.9 of 1989); 'Transnet group of employers' means- (a) Transnet; (b) any company formed in terms of section 32 of the Legal Succession to the South African Transport Services Act, 1989 (Act No. 9 of 1989), in which Transnet owns shares: and any other company in which Transnet or any subsidiary of Transnet 45 is a shareholder, excluding any company that falls within an alternative group of employers; 40 (e) 'Transport Pension Fund' means the fund referred to in section 2; 'Transnet Retirement Fund' means the Transnet Retirement Fund established by Transnet in terms of section 14A; 'Transnet Second Defined Benefit Fund' means the fund established by section 14B(I); 'valuator' means an actuary approved by the Registrar of Pension Funds contemplated in {he Pension Funds Act, 1956 (Act No. 24 of 1956), as a valuator for the purposes of the valuation of retirement funds and 55 appointed in teons of section 6( 1).". 50 8 No. 30270 GOVERNMENT OAZElTE, 7 SEPTEMBER 2007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 Substitution of scdion 2 of Act 62 of 1990

2. The following section is hereby substituted for section 2 of the principal Act: "Continued existence and change of name of Transnet Pension Fund 2. (I) The fund that immediately beFore the date ofthc commencement of the Transnet Pension Fund Amen ment Act, 2007, existed as the Transuet Pension Fund shall continue (0 exist as a juristic person under the name of the Transport Pension Fund. (2) Any reference 10 the Trammel Pension Fund in a law, the Rules or any other document shall be construed as a reference to the Transport Pension Fund.". 5 10 Substitution of section 3 of Act 62 of 1990, as substituted by section 40 of Act 52 of 1991

3. The following section is hereby substituted for section 3 of the principal Act: "Obligations payable from revenue 15

3. Obligations which, in tenos of regulations promulgated in terms of the Railways and Harbours Pensions Act, 1971 (Act No. 35 of 1971), and the Railways and Harbours Pensions for Non-Whites Act, 1974 (Act No. 43 of 1974), read in conjunction with section 36[(7)] of, and item (lO)(a) of Schedule 2, Part 7, to, the Legal Succession to tn.e South African Transport Services Act, 1989 (Act No.9 of 1989), are payable out of the revenue of 20 [the employer,] Transnet sn.all continue to be payable, but shall be payable out of [such] the revenue of one or more employers in such roportions- (a) (b) as may be agreed between them; or failing an agreement contemplated in paragraph (a), as the Minister, acting with the concurrence of the Minister of Finance, deems 25 equitable after taking into accoun(- (i) (ii) (iii) (iv) the history of occupational retirement funding arrangements for employees of Transnet and its predecessors; the history of Trammet and in particular the restructuring of Transnet in the period 2005 to 2007 and the consequential 30 changes in the employment of employees at that time; the tenus of any agreements between the employers; and the nature and extent of the liabilities of the Transport Pension Fund and the categories of members, pensioners and de- pendent pensioners to which they relate." . 35 Substitution of section 4 of Act 62 of 1990

4. The following section is hereby substituted for section 4 of the plincipal Act: "Determination of obligations and rights of certain members riods of membership

4. The Rules must provide for recognition of the of the New Fund or Pension Fun ,as the case may who were previously members of either of those funds for the purposes of determining their obligations to the Transport Pension Fund and the beneHts and rights that would have been applicable had they, or the members through whose membership they became entitled to benefits, been conlributors to the Transport Pension Fund from the date from which their 45 contributions to the New Fund or the Pension Fund commenced.". , of those mem ers 40 10 No. 30270 GOVERNMENT GAZETTE, 7 SEPTEMBER 1007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT. 2007 Insertion of sedion 4A in Act 62 of 1990

5. The following section is hereby inserted in the principal Act after section 4: "Division of Transport Pension Fund into subfunds 4A. (I) (aJ When the Trausoet Pension Fund Amendment Act, 2007, comes into operation, all existing members, pensioners, dependent pen- sioners, liabilities, assets, rights and obligations or the Transport Pension Fund shall from then on be attributable to a subfund with Trammel as the principal employer. (b) With effect from the date on which an alternative employer is accepted as a principal employer a sullfund shall be established in the name of thai principal employer. (2) The following persons shall be assigned to the subfund contemplated 5 10 in subsection (I)(b): (a) every employee who- (i) was a member of the Transport Pension Fund as at 11 15 (ii) (iii) November 2005; and has not ceased to be a member of the Transport Pension Fund; ,nd is employed by that principal employer or an employer in Ihat principal employer's alternative group of employers; and (b) every pensioner, if-- (i) (ii) the business in which the pensioner was employed at the time of his or her retirement was subsequently transferred to that principal employer or an employer in that principal employer's alternative group of employers; or shares in the company by which the pensioner was employed the time of his or her retirement were subsequently at transferred to that principal employer or an employer in that principal employer's alternative group of employers, 20 25 and the transferor and transferee to the transactions referred to in 30 subparagraphs (i) and (il) have agreed that the pensioner shall be assigned to that subfund; and every dependent pensioner, if- (e) (i) (ii) the business in which the member was employed at the time of his or her retirement or death was subsequently transferred to 35 that principal employer or an employer in that principal employer's alternative group of employers; or shares in the company by which the member was employed at the time of his or her retirement or death were subsequently transferred to that principal employer or an employer in that 40 principal employer's alternative group of employers, and the transferor and transferee to the transactions referred to in subparagraphs (i) and (ii) have agreed that the dependent pensioner shall be assigned to that subfund. (3) Upon establishment of a sllbfllnd- 45 (a) the assets and rights of the Transport Pension Fund relating to the persons contemplated in subsection (2) as detennined by agreement between- (i) (ii) the subfund board from which the persons were reassigned and the subfund board to which they are now assigned, after 50 consultation with the Transport Pension Fund's valuator; and Ihe principal employers of the subfunds concerned, shall be assigned to the subfund to which the persons referred to in subsection (2) are assigned; and any claim against the Transport Pension Fund by a person contem- 55 plated in subsection (2) shall be satisfied out of only the a<;sets of the subfund to which he or she is now assigned. (b) 12 No. 30270 GOVERNMENT GAZETIE, 7 SEPTEMBER 2007 Act No. 6, 2007 TRANSNET PENSION FUND AMENDMENT ACT. 2007 (4) If a member is reassigned from one subfund to anOlhcr, the liabilities, assets, rights and obligations contemplated in subsection (3) in respect of that member shaH be similarly reassigned. (5) The board of trustees of the Transport Pension Fund shall direct and oversee the operations of the Transport Pension Fund, subject to the Act and the Rules and without derogating from the powers of a subfund board. (6) With clrcet from the date upon which subfund is established in terms of subsection (J)- (a) a subl'und board shall be appointed, the composition, powers and duties of which must be provided for in the Rules; special rules shall provide for, amongst other things- (b) 0) (ii) (iii) the rate at which members assigned to the subfund are required to contribute to the Transport Pension Fund; the rate at which employers of members assigned to the subfund are required to contribute 10 the Transport Pension Fund; the benefits payable by the Transport Pension Fund to the members assigned to the subfund and to the persons contem plated in subsection (2)(b) and (c); 5 10 15 (iv) matters incidental to the matters referred to in subparagraphs 20 (I) to (iii); and (c) special rules may provide for the transfer to an insurer registered as such in terms of the Long-Term Insurance Act, 1998 (Act No. 52 of 1998), of the liability of the Transport Pension Fund to pay a pension or any other benefit. (7) Notwithstanding anything to the contrary in the Rules, a subfund board shall- (a) (b) exercise control over and manage the subfund; implement the investment policy and strategy as agreed with the principal employer; (c) determine the allocation of benefits payable to dependent pensioners; (d) determine whether a person who claims a benefit is entitled to that (e) (I) benefit; exercise such powers as the Minister may by regulation confer upon the subfund board; and exercise such powers as the board of trustees of thc Transport Pension Fund may delegate to such board. 25 30 35 (8) The board of trustees of the Transport Pension Fund shall allocate to one or more subfunds any benefit, cost, loss sustained or liability due to or incurred by the Transport Pension Fund as a whole which is attributable to 40 such subfund or subfunds. (9) The general rules of the Transport Pension Fund shall provide for, amongst other things- (a) the allocation to a subfund of costs incurred by the Transpol"t Pension Fund; the administration of the Transport Pension Fund; the valuation of the Transport Pension Fund; the audit of the Transport Pension Fund; and all other matters related to the governance and management of the Transport Pension Fund. 45 50 (b) (c) (d) (e) (10) The administration of a subfund may, by agreement between the applicable principal employer and that subfund board, be conducted separately from any other subfund. (11) The initial special rules of a subfund must provide for benefits and rates of contribution, as the case may be, applicable to its members, 55 pensioners and dependent pensioners, which benefits and rates of contribu- tion are the same as those which were applicable to them immediately before the establishment of the subfund. (12) A principal employer is liable to the Transport Pension Fund for the payment of benefits due to members, pensioners and dependent pensioners 60 14 No_ 30270 Act No.6, 2007 GOVERNMENT GAZETTE, 7 SEPTEMBER 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 of that subfund to the extent that the assets of the subl'und are not sulTIcient to meet the benefits due. (13) An employer's liabilities to the Transport Pension Fund arc limited to those attributable to its members, pensioners and dependent pensioners assigned to its subfund.". 5 Amendmentofsection 5 ofAd620f 1990, as amended by section 20f Act 41 of 2000

6. Scction 5 of the principal Act is hereby amended- (a) by the substitution for the heading of the following heading: "Rules of Transport Pension Fund"; (b) by the substitution for subsection (I) of the following subsection: 10 "( I) The control and management of the Transport Pension Fund, admission to and termination of membership, the amount and nature of contributions by mcmbers and contributions and other payments by the [employer] employers, and the benefits due to pensioners and [other beneficiaries] dependent pensioners, the tenns and conditions under which members of the Transport Pension Fund may elect to have their rights ceded, and assets commensurate with such rights transferred from the Transport Pension Fund to a pension fund established by the Minister in terms of section l4A(2), and the manner in which the Rules of the Transport Pension Fund may be amended, shall be governed by the Rules 20 of the Transport Pension Fund."; 15 (e) (d) by the deletion of subsection (2); by the substitution for subsection (3) of the following subsections: "(3) [Prior to the date of registration of the Fund in terms of section 13 this Act, any amendment of the Rules shall be subject to] 25 Any amendment of- (a) (b) t e general rules shall be made by the board 0 trustees of the the Transport Pension Fund subject principal employers or subject to the approval of a majority of the principal employers and of the Minister; and the special rules applicable to a subfund shall be made by the applicable subfund board subject to the approval of the principal employer. to the approval of all 30 (3A) If, in the opinion of the valuator of the Transport Pension Fund, an amendment to either the general rules or the special rules may affect 35 the financial condition of the Transport Pension Fund or any subfund such amendment shall only be made with the approval of the Minister, [acting with the] in concurrence [of] with the Minister of Finance."; and (e) by the substitution for subsection (4) of the following subsection: "(4) (a) The general rules as amended from time to time shall be 40 binding on each erop oyer, member, pensioner, dependent pensioner and the Transport Pension Fund. (b) The special rules of each subfund, as amended from time to tjme, shall be binding on the applicable employers, membcrs, pensioners, dependent pensioners and, to the extent applicable, on the Transport 45 Pension Fund.". Amendment ofsection 6 ofAct 62 of 1990, as amended by section 3 of Act 41 of 2000

7. Section 6 of the principal Act is hereby amended- (a) by the substitution for the heading of the following heading: "Actuarial [evaluation] valuation of [the] Transport Pension Fund"; 50 (b) by the substitution for subsection (1) of the following subsection: "(I) The Transport Pension Fund shall be valued by [an actuary]!! valuator, appointed by the Minister, within three years from the operative datc of this Act and thereafter by a valuator appointed by the board of 16 No. 30270 GOVERNMENT GAZETfE, 7 SEPTEMBER 1007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT. 2007 trustees of thc Transp0l1 Pcnsion Fund at intervals[, in the discretion of the Minister,] of not more than three years."; (c) by the insertion of the following subsection after subsection (I): "(IA) With eflect from the date of commencement of the Transnet Pension Fund AmendmentAct, 2007, and for the purposes of an actuarial valuation, each subfund shall be subject to an actu<lrial v<llu<ltion as if it were a separate legal entity."; 5 (d) by the substitution for subsection (2) of the following subsection: "(2) The report of the [actuaryJ valuator shall comply with the requirements [set out in se(tion 16 (7) of the Pension Funds Act, 1956J 10 applicable to the valuation of retirement funds in tenus of the Pension Funds Act, 1956 (Act No. 24 of 1956), and shall be submitted by Ihe [actuary] valuator to f2l the Minister [and]; @ the Minister of Finance; (c) the Registrar of Pension Funds contemplated in section 3 of Ihe Pension Funds Act, 1956; and (d) each principal employer."; and by the deletion of subsections (3), (4) and (5). 15 (e) Substitution of section 7 of Act 62 of 1990 20 8, The following section is hereby substituted for section 7 of the principal Act: "Benefits from [the] Transport Pension Fund not assignable or executable

7. No pension or lump sum from the Transport Pension Fund, or right to such a benefit, or right in respect of contributions made by a member or on 25 his or her behalf, shall be capable of being assigned or transferred or otherwise ceded, or of being pledged or hypothecated, or be liable, subject to [the provisions of] section 7 of the Divorce Act, 1979 (Act No. 70 of 1979), and the Maintenance Act, 1998 (Act No. 99 of 1998), to be attached or subjected to any form of execution under ajudgment or order of a court 30 of law, and in the event of the beneficiary attempting to assign, transfer or otherwise cede or to pledge or hypothecate a benefit or right, payment thereof may be withheld, suspended or entirely discontinued, if the Transport Pension Fund so determines, provided that the Transport Pension Fund may make payment of such benefit or of any benefit in pursuance of 35 such contributions or part thercof to one or more of the dependents of the beneficiary or to a trustee for such dependent or dependents during such period as it may direct.". Amendment of section 8 of Act 62 or 1990 9, Section 8 of the principal Act is hereby amended- (a) by the substitution for the heading of the following heading: 40 "'How pensions rrom [Ihe] Transport Pension Fund are affe(ted by insolvency"; and (b) by the substitution for subsection (I) of the following subsection: "( I) If the estate of any [person in receipt of a pension from the 45 Fund] member, pensioner or dependant pensioner (including the estate of any member, pensioner or dependent pensioner entitled to an annuity purchased by the Transport Pension Fund) is sequestrated or surrendered or assigned for the benefit of his or her creditors, [payment of the pension shall forthwith be discontinued, provided that in any such 50 case all or any part of the pension shall be paid to or for the benefit of all or any of the following persons, namely, the pensioner. his wife or minor child or, failing a wife or minor child. to the mother of an illegitimate child or any child, whether legitimate or adopted or illegitimate, or other relative dependent on him, provided further 55 18 No. 30270 GOVERNMI:NT GAZETTE, 7 SEPTEMBER 2007 Act No. 6. 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 that, if the payment is made to the pensioner, it shall be] any benefit payable to such person shall nol foml part of the assets in the insolvenl estate of that person and shall be paid to thai person for his or her own personal use or 10 his or her dependents for their own personal use, and may not in any way be auached or appropriated by the tllistee of his or her insolvent estate or by his or her creditors, notwithstanding anything to the contrary in any law relating to insolvency.". 5 Substitution of section 9 of Act 62 of 1990

10. The following section is hereby substituted for section 9 of the principal Act: "Recovery of certain debts due to employer from benefits payable to members on their dismissal or retirement 10

9. If a member of the Transport Pension Fund (a) (b) (c) is dismissed on account of fraud or dishonesty; resigns or absconds in order to avoid dismissal on account of fraud or dishonesty, or in anticipation of a disciplinary or a criminal charge involving fraud or dishonesty being laid against him or her; or leaves the employ of [thel an employer for any reason, or dies, before any loan or advance (otherthan a loan referred to in section 10 of this Act) made {Q him or her at his or her specific written request by [the] an employer or from the Benevolent Fund referred to in section 23 of 20 the SOUlh African Transport Services Conditions of Service Act, 1988 (Act No. 4101' 1988), has been repaid in full, 15 the Transport Pension Fund shall have the right to rO;;lcover on behalf of the cmployer from any benefit payable from the Transport Pension Fund to such former member or his or her estate or to some other person in respect 25 of his or her death, the amount of any loss, a<; determincd by the employer, which the latter may have sustained by reason of such fraud or dishonesty on the part of the member, or the unpaid balance of such loan or advance, as the case may be, provided that the onus of proving that a member rcsigned or absconded for any reason mcntioned in paragraph (b) shall be 30 on the employer.". Substitution of section 10 of Act 62 of 1990

11. The following section is hereby substituted for section 10 of the principal Act: "Application of benefits in liquidation of debts in respect of dwelling. houses 35

10. If in any agreement between [the] an employer or another entity, approved by the board of trustees of the Transport Pension Fund which provides housing finance, and a member of the Transport Pension Fund in terms of which the member purchases from the employer any dwel1ing~ house or in terms of which the member is to receive any loan from the 40 employer or the aforementioned entity in order to acquire land for the purpose of erecting a dwelling-house thereon or to acquire or erect a dwelling-house or to discharge any bond over any land or dwelling-house owned by the member, it is provided that- (a) if for any reason the member retires [or is dismissed or retired] on a 45 pension, [the employer or] the Transport Pension Fund may, at the discretion of the employer and upon the member so retiring, commute in a cash sum such portion of the pension as may be necessary to liquidate any amount payable- 20 No. .10270 GOVERNMENT GA/.fiTTE, 7 SEPTEMBER 2007 Act No.6, 2007 TRANSNET PENSION fUND AMENDMENT ACT, 2007 5 (i) (ii) under such agreement; or in pursuance of any insurance entered into by the employer in connection with the repayment of any amount under such agreement, which remains unpaid at the date of his or her retirement [or dismissal], the Transport Pension Fund may, upon the member so retiring [or being dismissed or retired], effect such commutation with a consequent reduction in pension benefits and, on behalf of the employer or entity, apply such first-mentioned amount towards the liquidation of the amount so remaining unpaid; or if for any reason the member [resigns voluntarily or is dismissed or retired otherwise than on pension] ceases to be employed by an employer and is not immediately thereafter employed by another employer, or if the member dies before retirement, the employer or the Transport Pension Fund may apply any money doe under this Act to 15 him or her or his or her successor in title in respect of such property or of his or her interest in such property, towards the liquidation of any amount payable- 10 (b) (i) (ii) termination of employment or death, the date of [his voluntary resignation, the under such agreement: or in pursuance of any insurance entered into by the employer in 20 connection with the repayment of any amount under such agreement, which remains unpaid at dismissal, retirement] Transport Pension Fund may on behalf of the employer or entity, upon 25 the [member so voluntarily resigning or being dismissed or retired] member's tennination of employment or upon his or her death, as the case may be, so apply the said money with a consequent reduClion in pension benefits, provided that the Transport Pension Fund shall not so apply out of money so due to any such successor an 30 amount in excess of the amount which bears to the total amount so remaining unpaid the same proportion as the value of such successor's share or interest in property bears. in the opinion of the Transport Pension Fund, to the value of the whole thereof, provided further that no benefit payable to a widow or widower shall be so applied.". 35 Substitution of section II of Act 62 of 1990, as substituted by section 4 of Act 41 of 2000

12. The following section is hereby substituted for section 11 of the principal Act: "Recovery of amounts in respect of medical scheme

11. The Transport Pension Fund and the Transnet Second Defined 40 Benefit Fund are hereby empowered to recover money due by a pensioner to Transmed (the medical scheme referred to in section 10 (2) of the Legal Succession to the South African Transport Services Act. 1989 (Act No.9 of 1989)), in terms of the Transmed Rules and to pay such money to Transmed.". 45 22 No_ 30270 GOVERNMENT GAZETTE, 7 SEPTEMBER 2007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 Substitution of sedion 12 of Act 62 of 1990, a'l substituted by section 5 of Act 41 of 2000

13. The following section is hereby substituted for section 12 of (he principal Act: "Guarantee 12. ill [The] Subiect to sections4A(12) and (13), the obligations of [the Company] Transnet and the State in respect of the New Fund und the Pension Fund in terms of section 3(2) and section 16 of the Legal Succession to the South African Transport Services Act, 1989 (Act No.9 of 1989), shall be deemed to be obligations towards the Transport Pension Fund and the Transnet Second Defined Benefit Fund in such proportions as determined by [the State Actuary] a valuator appointed by the Minister in consultation with the [actuary] valuator appointed by the Transport Pension Fund and the [actuary] valuator appointed by [the Company] Transnet. 5 10 (2) Transnet guarantees the financial obligations of the Transnet Second 15 Defined Benefit Fund.". Substitution of section 13 of Act 62 of 1990

14. The following section is hereby substituted for section 13 of the principal Act: "Registration and application of Pension Funds Act, 1956 13. (1) The Registrar of Pension Funds may, on request by the Transport 20 Pcnsion Fund, register the Transport Pension Fund in terms of section 4 of the Pension Funds Act, 1956, and may, for the purposes of such request, regard the Transport Pension Fund as a 'pension fund organization' as defined in section 1(1) of that Act. (2) Upon such registration- 25 (a) (b) (e) the whole of the Pension Funds Act, 1956, shall become applicable to the Transport Pension Fund; and the provisions of sections [5] 1 to 11 of this Act shall cease to be applicable[; and the Fund shall, for the purposes of the application of the Income 30 Tax Act, 1962, no longer be regarded as a pension fund as defined in paragraph (a) of the definition of "pension fund" in section I of that Act].". Amendment of section 14 of Act 62 of 1990, as substituted by section 41 of Act 52 ~1"1

15. Section 14 of the principal Act is hereby amended- (aJ by the substitution for the heading of the following heading: "Membership of funds"; (b) by the substitution for subsections (1) and (2) of the following subsections, respectively: 35 40 ''( 1) Any employee of [any of the companies whicb form part of the group of companies and] an employer who is a member of the [Fund] Transport Pension Fund or the Transnet Retirement Fund, may, subject to the [Rules] rules applicable to that fund, continue to enjoy membership of [the Fund] that fund if [be is transferred or seconded from one 45 company which forms part of the group of companies to another company which forms part of the group of companiesl= (a) he or she continues to be employed by the employcr; or (b) he or she becomes employed by another employer as a conseguence of a transfer of business as contemplated in section 197 of the 50 Labour Relations Act, 1995, (Act No. 66 of 1995). 24 No. 30270 GOVERNMENT GAZETTE. 7 SEPTEMBER 2007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 (2) [Any employee of any of the companies which form part of the group of companies, may, subjeet to the Rules, become a member of the Fund] OnlY persons who are employed by an employer in the Transuet group of employers after the commencement of the Transnet Pension Fund Amendment Act, 2007, may become members of the Transnet Retirement Fund. "; (e) by the inserlion after subsection (2) of the following subsections: "(2A) If an employer ceases to be an employer its employees who are members of the Transport Pension Fund or the Transnet Retirement Fund (:ease to be members of that fund, (28) If an employee who is a member of the Transport Pension Fund or the Transnet Retirement Fund ceases to be employed by an employer, other than- (a) (b) he or she shall cease to be a member of that fund."; and in the circumstances contemplated in subsection (I); or as a consequence of retirement, (d) by the deletion of subsections (3) and (4), Amendment of seetion 14A of Act 62 of 1990, as inserted by seetion 7 of Act 4J of 2000 16, Scction 14A of the principal Act is hereby amended- (a) by the substitution for the heading of the following heading: "Powers of [Company] Transnet to establish pension [fund] funds"; (b) by the substitution for subsections (1), (2), (3) and (4) of the foJlowing subsections, respectively: 5 10 15 20 "( I) In this section, "pension fund" means [the] !! pension fund 25 contemplated in subsection (2), (2) Notwithstanding the establishment of the [Transnet] Transport Pension Fund in tenns of section 2(1), [the Company] Transnet may, subject to the approval of the Minister, acting with the concurrence of the Minister of Finance, by notice in the Gazette establish [a] one or more 30 pension [fund] funds. (3) [The] ~ pension fund established in terms of subsection (2) shall be vested with legal personality and shall be capable of owning assets, incurring liabilities, suing or being sued in its own name and of doing all such things as may be necessary for or incidental 10 the exercise of its 35 powers or Ihe perfonnance of its functions in tenns of its particular rules, (4) The control and management of the pension fund, admission to and tennination of membership, the amounl and nature of contributions by members and contributions and other payments by the employer and {he benefits due to pensioners and beneficiaries as well as the manner in 40 which the rules of such pension fund may be amended, shall be governed by the particular rules of such pension fund."; and (e) by the substitution for subsections (6), subsections,respeclively: (7) and (8) of the following "(6) The rules of the pension fund, as amended from time to time, 45 shall bind [the employer] each employer which employs members of the pension fund or which employed persons who were members of the pension fund immediately before their retirement or disablement, members, pensioners, [and] beneficiaries of such pension fund and the pension fund. (7) [The] A pension fund is deemed to be a pension fund as defined in paragraph (Qj of the definition of "pension fund" in section I of the Income Tax Act, 1962 (Act No, 58 of 1962). 50 (8) [All the provisions of this Act, except section 12] Sections 6, 7, 8,9, to, II, 13 and 14 apply with the changes required by the context to 55 [the] ~ pension fund,". 26 No. 30270 GOVERNMENT GAZfiTIE, 7 SEPTEMBER 2007 Act No.6, 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 Amendment of section 148 of Act 62 of 1990, as inserted by section 7 of Act 41 of 2000

17. Section l4B of the principal Act is hereby amended- (a) by the substitution for subsections (2), (3), (4), (5) and (6) of the foHowing subsections, respectively: 5 "(2) Pensioner members of the Transport Pension Fund as at the date of commencement of the Transnet Pension Fund Amendment Act, 2000 (Act No, 41 of 2000), are hereby transferred from the Transport Pension Fund to the Transnet Second Defined Benefit Fund. (3) All the assets, liabilities, rights and obligations pertaining to the members referred to in subsection (2), as determined by [the State Actuary] a valuator appointed by the Minister in consultation with an actuary appointed by the Transport Pension Fund and an actuary appointed by [the Company] Transnet, shall vest in and devolve upon the Transnet Second Defined Benefit Fund without any formal transfer or cession with effect from the date of publication of such determination in the Gazette by the Minister. 10 15 (4) The Transnet Second Defined Benefit Fund shall be vested with legal personality and shall be capable of suing or being sued in its own name and of doing all such things as may be necessary for or incidental 20 to the exercise of its powers or the performance of its functions in terms of its rules. (5) The control and management of the Transnet Second Defined Benefit Fund, the benefits due to pensioners and the beneficiaries shall be governed by the rules of the Transnet Second Defined Benefit Fund set 25 out in the Schedule to [this Act] the Transnet Pension Fund Amendment Act, 2000 (Act No. 41 of 2000). (6) TIle rules set out in the Schedule may be amended by the board of trustees of the Transnet Sccond Defined Bcnefit Fund with the approval of Transnet: Provided that an amendment that is likely to affect the 30 financial condition of the Transnet Second Defined Benefit Fund shall be of no force or effect unless it ha.. also been approved by the Minister acting with the concurrence of the Minisler of Finance."; and (b) by the addition of the following subsection: "(7) The Minister may by notice in the Gazette, with the a roval 35 t e boar of trustees of the Transnet of Transnet and the approva 0 Second Defined Benefit Fund, determine that those persons or categories of persons receiving pensions and benefits from Transnet will become entitled, with effect from a date stipulated in the notice, to pensions and benefits from the Transnet Second Defined Benefit Fund, which shall be 40 no less favourable than that which they presently receive whereupon the pensions and benefits from Transnet shall cease. ". Insertion of section ISA in Act 62 of 1990

18. The following section is hereby inserted in the principal Act after section 15: "Minister's powers to make regulations ISA. (I) The Minister may make re ulations regarding- (a) (b) anything that must or may be prescribed in tenns of t is Act; and any ancillary or incidental administrative or procedural matter that it is necessary to prescribe for the proper implementation or administration of this Act.". 45 50 No. 30270 GOVERNMENT GAZETIE, 7 SEPTEMBER 2007 Ad No.6. 2007 TRANSNET PENSION FUND AMENDMENT ACT, 2007 Short title and commencement

19. This Act is called the Transnet Pension Fund Amendment Act, 2007, and is deemed to have come into operation on II November 2005.