South Africa: National Assembly Approves the Public Pension and Related Payments Bill
The National Assembly, during its hybrid plenary sitting yesterday, approved the Public Sector Pension and Related Payments Bill.
The Bill, introduced by the Minister of Finance as part of the 2025 Budget, proposes that public sector-related pension, post-retirement medical and other benefits in terms of statutory and collective agreement obligations become direct charges against the National Revenue Fund (NRF).
This means the Bill will make it easier for the government to pay pensions and medical benefits to retired public servants, such as former presidents, Members of Parliament, military veterans, and other government employees. Instead of using the National Treasury's budget, these payments will now be made directly from the NRF – the central account for government funds.
The current payment system makes it difficult for National Treasury to pay the benefits, as there are administrative requirements to track which department each retired claimant worked in, causing delays and complications. The new Bill will fix this by simplifying how and where the payments come from.
In line with the requirements of the Money Bills Amendment Procedure and Related Matters Act, the Standing Committee on Appropriations held public hearings and submissions were received from key stakeholders, including the Financial and Fiscal Commission, which supported the Bill's intent but raised concerns regarding fiscal transparency and the clear delineation of responsibilities between the government, the Government Employees Pension Fund and public servants.
The Parliamentary Budget Office agreed with the Bill and said Parliament should always have a chance to approve any changes. The Congress of South African Trade Unions fully supported the Bill, saying it protects pensions and respects worker agreements.
While the Standing Committee supports the Bill, it raised its concern with a clause that says if Parliament does not approve or reject changes to the list of benefits within three months, those changes will automatically become law. The committee does not agree with this and asked the Minister of Finance to remove that clause in the next round of changes.
The committee further recommended that the Minister of Finance report back to Parliament in writing on the concerns raised and that the committee should be kept informed and involved in all future decisions about these pensions.
The NA adopted the Bill and it will now be sent to the National Council of Provinces for concurrence.
Distributed by APO Group on behalf of Republic of South Africa: The Parliament.
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