Home  »  Articles   »   Military Pensions Adjusted

Military Pensions Adjusted

November 15, 2019

National Treasury

15 November 2019

Military pensions have been adjusted.

The new amounts were published in Government Gazette 42840.

The Military Pensions Act refers to various formulas to be used in the determination of pension pay outs for South African National Defence Force members injured or disabled while performing military service.

In terms of formula one, the amount to be determined by the finance minister is set at R86 712.00

As regards formula two, the variable amount stands at R14 393.64.

The notice also sets the gratuity to be paid to a member who suffers from a pensionable disability determined at 10% or less at R9 597.00.

The gratuity for a pensionable disability determined at more than 10% but less than 20% will be R19 191.00.

New amounts are also provided for those with a matric certificate or a three-year bachelor’s degree.

The adjusted amounts come into effect on 1 April 2019.

Meanwhile, in Gazette 42839, the Financial Sector Conduct Authority has published proposed amendments to the listing requirements of Equity Express Securities Exchange (PTY) Limited for comment.

The proposed amendments were drawn up in terms of the Financial Markets Act.

Objections are invited within 14 days of the date of publication.

In Gazette 42840, the South African Revenue Service published an amendment to Schedule 1 of the Customs and Excise Act.

Part 5A of Schedule 1 is amended by the substitution of fuel levy item 195.20.01 in order to rectify the rate of fuel levy on biodiesel from 170,5c/kg to 170,5c/li.

The amendment applies with retrospective effect from 5 June 2019.

In a separate matter, the finance minister, Tito Mboweni, has informed Geordin Hill-Lewis of the Democratic Alliance in a written reply to a parliamentary question that “National Treasury is not actively considering the introduction of prescription of assets”.

Mr Hill-Lewis had asked whether national treasury is actively considering to introduce the prescription of assets and whether he has held any consultative meetings with industry bodies and/or organised labour to discuss the introduction of the prescription of assets.

The finance minister highlighted treasury’s role in protecting retirement funds.

“I want to assure all member of any retirement fund that Government’s first and foremost responsibility is to protect their funds at all times, and we have in fact strengthened our regulatory system to continue to do so (e.g. through “Twin Peaks” legislation like the Financial Sector Regulation Act of 2017).”

The minister also cautioned “all who make public comments on retirement funds, including those who report on them, to take greater care that they do not in the process scare retirement fund members to cash out their funds and hence not to preserve their savings”.

He added that treasury has “not held any consultative meetings this year with industry or any person on prescribed assets”.