MEMORANDUM
TO: CHAIRPERSON: COMMITTEE ON PRIVATE MEMBERS AND LEGISLATIVE PROPOSALS
FROM: DEPARTMENT OF PUBLIC SERVICE AND ADMINISTRATION
SUBJECT: PETITION TO PARLIAMENT BY BRIG. JD KRIGE

DATE: 29 AUGUST 2006

1. According to information supplied, Brig. J D Krige retired in 1981 from the SAPS at the age of 60. He lost his wife on 17 January 2004. He has a disabled son and according to him, there will be no one to take care of his son when he passes away. He requests Parliament that the pension benefit currently being paid to him by the Government Employees Pension Fund (GEPF) at his death be transferred to his son.

2. The following is submitted to the Committee for consideration:

2.1 The additional pension benefits Brig. Krige asked for will not be paid from the GEPF but from National Revenue. National Treasury is responsible for the fiscus and is therefore deemed to be the correct institution to respond to the funding related aspects.

2.2 Brig. Krige is stating that he has no other remedy in law for redress against the State. Although it is true insofar it relates to the rules of the GEPF, it is not necessarily true for the rest of South Africa's social network. If there is no other or sufficient source of income after the death of Brig. Krige, his son will receive a disability grant and most probably be accommodated in a home for disabled persons. The Department of Social Development is the correct institution to give guidance on this issue.

2.3 It should be taken into account that if the petition is supported by Parliament, a precedent would be created. Brig. Krige's position is not unique and the question should be asked why additional pension should only be paid in Brig. Krige's case. There are thousands of disabled citizens who only receive disability grants.

2.4 An aspect not covered at all in the Petition to Parliament is whether Brig. Krige will be leaving behind assets (cash, fixed assets, life policies, ect), which could be used to sustain his son. This aspect should first be explored before any decision is made.

2.5 It could be mentioned that Brig. Krige is currently being paid a monthly pension of R16303.38 per month after tax, which is relatively high and should have made additional provision for his son after his death. It is interesting to note that the average monthly pension paid out for the year 2005 by the GEPF is R2556.55

2.6 The Rules of the GEPF were changed to make provision for the payout of pension benefits to orphans and disabled dependants. The effective date was 1 December 2002 and excluded employees who retired prior to the latter date. The cut off date was necessary due to cost implications if it was backdated and also adheres to the general principle not to tamper with the rights of employees who vested at retirement. Brig. Krige retired in 1981 and has been on retirement for years. Note should be taken that the rule amendments were negotiated and agreed with the unions in the Public Service Co-ordinating Bargaining Council and cannot unilaterally be changed by the employer or the GEPF.

2.7 The GEPF and the employer is in the process of correcting past discriminatory practises for large groups of personnel (e.g. recognising years of service as pensionable years of service for former casual workers and general assistants and for female employees who lost their pension benefits due to a change in their marital status). The transforming of pension benefits in the Public Service has been an ongoing process since 1996, with the introduction of the GEPF law rules. These are priority areas that will cost a huge sum of money to address.

3. In view of the above, given our knowledge of the case, the Petition is not supported.

DIRECTOR-GENERAL