Trade unions have mixed views on pension payments bill

THE National Assembly has approved the Public Sector Pension and Related Payments Bill, which is aimed at simplifying how pensions and related post-retirement benefits are paid to public servants.

- SIPHESIHLE BUTHELEZI

The Bill will now be referred to the National Council of Provinces for concurrence.

The legislation, introduced by the Minister of Finance as part of the 2025 Budget, proposes that public sector pension, post-retirement medical, and other benefit obligations become direct charges against the National Revenue Fund (NRF). This change seeks to streamline administration and avoid delays in payments, according to Parliament.

Parliament said in a statement that "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."

Trade union federation, the Congress of South African Trade Unions (Cosatu) supports the Bill.