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