Public Finance and Monetary Policy Chamber Activities

Over the past 18 months the chamber has not functioned optimally, with only occasional meetings taking place. Disagreement between the constituencies on the role and the work programme of the chamber contributed considerably to the poor performance of the chamber.

Since November 1999, Nedlac has engaged in a series of meetings to establish an appropriate role and work programme for the chamber. The constituencies have committed themselves to revitalizing the work of the chamber. This commitment has begun to see results and constituencies are currently engaged in negotiating the use of pensions funds surpluses by employers.

Pension Funds Surplus

The Financial Services Board, which is the body that administers various parts of the Pension Fund Act, has faced increasing numbers of applications for the repatriation of surpluses. This follows a case involving the Paarl Municipal Widows and Orphans Pension Fund, where a decision by the registrar of Pension Funds to refuse to allow surplus assets to be repatriated to the employer on the fund's liquidation was overruled by the Financial Services Board's appeal board. The appeal board ruled that as the Pension Funds Act was silent on the question of distribution of surpluses of liquidated funds, there was nothing to prevent a change in the rules giving employers access to them.

The Department of Finance did table a Pension Funds Amendment Bill in Parliament last year, but trade union opposition was so strong that the bill was withdrawn for further negotiation. (The bill would have granted employers the right to the negotiated repatriation of surpluses).