Deputy Speaker, the response to the first part of the question is that when the Portfolio Committee on Public Enterprises resolved on 2 November 2010 that a cash injection of R1,964 billion be provided to the Transnet Second Defined Benefit Fund to cover an ex gratia payment of five months, pension, a base upliftment of 3,21% and 75% of Consumer Price Index, CPI, and an annual increase going forward on the 3,21% uplifted base, it was recognised that a funding solution still needed to be finalised.
The Minister of Finance has met with the Minister of Public Enterprises and reached agreement that Transnet will be responsible for providing all of the funding. To effect this decision, it requires the following process be followed: firstly, the rules need to be amended and drafted accordingly; secondly, approval of the rule amendments by the board of trustees together with support from the actuaries; thirdly, approval of the rule amendments by the board of directors of Transnet; fourthly, approval of the rule amendments by the Minister of Public Enterprises, together with the concurrence of the Minister of Finance; and lastly, rule amendments to be gazetted, at which time the amended increase policy can be implemented.
The response to the second part, as highlighted in the answer above, is that the additional financing required for the payment to the pensioners over and above the existing funds surplus is to be provided by Transnet. Payments can be effected once the pension funds governance process, as outlined above, has been completed. Thank you.