Special Pensions Amendment Act

Link to law: http://www.gov.za/documents/special-pensions-amendment-act
Published: 2006-01-16

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Special Pensions Amendment Act [No. 27 of 2005]


Government Gazette
REPUBLIC OF SOUTH AFRICA

Vol. 487 Cape Town 16 January 2006 No. 28391
THE PRESIDENCY No. 33 16 January 2006
It is hereby notified that the President has assented to the following Act, which is hereby published for general information:–
No. 27 of 2005: Special Pensions Amendment Act, 2005.

GENERAL EXPLANATORY NOTE:
[ ] Words in bold type in square brackets indicate omissions from existing enactments. Words underlined with a solid line indicate insertions in existing enactments.
(English text signed by the President.) (Assented to 12 January 2006.)
ACT To amend the Special Pensions Act, 1996, so as to provide for the lapsing of provisions regarding rights to pensions and survivor’s benefits on 31 December 2006; to introduce a surviving spouse’s pension, an orphan’s pension, and a funeral benefit; to regulate benefit payments to spouses and dependants; to provide for the reconsideration of determined cases by the Board; to provide for the repayment of any benefit paid to a person that was not entitled to that benefit; to further regulate the dissolution of the Board and the Review Board; to amend Schedule 3 to the Act; to add Schedule 4 to the Act; and to provide for matters connected therewith.
E IT ENACTED by the Parliament of the Republic of South Africa, as B follows:- Substitution of heading in Act 69 of 1996
1. The following heading is hereby substituted for the heading to Part 1 of the Special Pensions Act, 1996 (hereinafter referred to as the principal Act): 5
“PART 1
[BENEFITS] RIGHT TO PENSION AND SURVIVOR’S LUMP SUM BENEFIT ” .
Amendment of section 1 of Act 69 of 1996, as amended by section 1 of Act 75 of 1998
2. Section I of the principal Act is hereby amended by the substitution for subsection 10
“(4) Apensioner who qualifies for a benejt in terms of subsection ( I ) is entitled to receive apension, payable monthly, commencing on 1 April 1995 or the first day of the month during which that person attains the age of 35 years, whichever is the later date.”. 15
(4) of the following subsection:
Repeal of section 3 of Act 69 of 1996
3. Section 3 of the principal Act is hereby repealed.
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Act No. 27.2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
Amendment of section 6 of Act 69 of 1996, as amended by section 2 of Act 75 of 1998 and section 1 of Act 21 of 2003
4. Section 6 of the principal Act is hereby amended- (a ) by the substitution for the heading of the following heading:
(6 ) by the substitution in subsection ( I ) for the words preceding paragraph (a) of the following words:
must-”.
“Applications for benefits under Part 1;”; 5
“Any person who applies for a benejt in terms of [this Act]
Insertion of section 6A in Act 69 of 1996
5. The following section is hereby inserted in the principal Act after section 6: 10
“Lapsing of Part 1, and certain savings
6 d (2) Subsection ( 1 ) does not affect any benejif payable under this Part in
respect of which the Board has made a determination in terms of section 7 before 3 1 December 2006.
(3) Any application for benejts in terms of this Part which has been suhmitted to the Board before 3 1 December 2006, but on which the Board has not made a determination by that date, must be finalised as if this Part had not lapsed.”.
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Insertion of heading and sections 6B, 6C, 6D, 6E, 6F and 6G in Act 69 of 1996 20
6. The following heading and sections are hereby inserted in the principal Act after section 6A:
“PART 1A
BENEFITS ON DEATH OF PENSIONER
Limitation on benefits payable under Part 1A 25
6B. A pensioner referred to in section 1 whose monthly pension payments had already begun by 3 1 December 2006 or a person referred to in section 2 who had already received a survivor 5 lump sum benejt by that date, may not be granted any benejt other than a funeral benejit under this Part.
Right to lump sum benefit
6C. Subject to section 6E, upon the death of a pensioner a surviving spouse or, if there is no surviving spouse, a surviving dependant of that pensioner, is entitled to receive a lump sum payment equal to twice the annual amount that was payable to that pensioner immediately before the date of death.
Right to monthly pension
6D. ( I ) Subject to section 6E, upon the death of a pensioner- (a) a surviving spouse of that pensioner is entitled to receive a monthly
pension equal to 50% of the pension that was payable to that pensioner immediately before the date of his or her death for the remainder of the surviving spouse’s life; or
(b) where there is no surviving spouse, a dependant who becomes an orphan is entitled to receive a monthlypension equal to the 50% of the pension that was payable to that pensioner immediately before the date of his or her death-
(i) until the orphan reaches the age of 18; or (ii) until the orphan reaches the age of 23, if the orphan is a
full-time student; or
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6 No. 28407 GOVERNMENT GAZEITE, 16 JANUARY 2006
Act No. 27.2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
(iii) for the remainder of the orphan5 life, if the orphan suffers from a permanent and total disability on the date of the pensioner5 death. (2) When the first monthly payment is made to a surviving spouse or
orphan in terms of this section, the Minister must include a lump sum covering all the pension payments due to that person from the date of the death of the pensioner to the date of that first payment.
Allocation of equal shares in benefit
6E. If a pensioner is survived by more than one spouse or, if there are no surviving spouses, by more than one dependant or orphan, each of whom qualifies for a lump sum benejt or a monthly pension or both, the Board must allocate an equal share of the lump sum bene@ and the monthly pension to each qualifying spouse, dependant or orphan, as the case may be, but the total benejts for all the surviving spouses, dependants or orphans must not exceed the benejt that would have been payable had there been only one surviving spouse, dependant or orphan.
Funeral benefits
6F. (I) A funeral benejit as set out in Schedule 4 is payable to- (a) a pensioner on the death of his or her spouse or child; (b) a surviving spouse upon the death of apensioner or child of a deceased
pensioner; or (c) any dependant who becomes an orphan upon the death of a pensioner
or surviving spouse of a deceased pensioner. (2) Section 6E applies with the necessary changes in respect of
subsection (l)(b) and (c).
Applications for benefits under Part 1A
6G. ( I ) (a) Any person who applies for a benejt under Part I A must- (i) complete an application form in such format as the Board may
determine; and (ii) supply the Board with such additional information as it may require.
(b) The form must be submitted to the Board as soon as possible after the death of the pensioner, spouse or child, but not later than 12 months thereafter.
(2) If a person who would qualify for a benejt is permanently or temporarily disabled and therefore unable to apply for a benejt personally under this part, any person acting on behalf of that disabled person may submit a curator’s application to the Board in such format as the Board may determine.”.
Insertion of heading in Act 69 of 1996
7. The following heading is hereby inserted in the principal Act after section 6G:
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I O
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“PART 1B 40
DETERMINATION BY BOARD AND APPEAL”
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Act No. 27,2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
Amendment of section 7 of Act 69 of 1996
8. Section 7 of the principal Act is hereby amended by the addition of the following
“(2) The Board may on application reconsider and amend or withdraw its determination in respect of any application, if the Board is satisfied that material facts exist that were not considered by it and that may have resulted in a different determination, had the facts been considered when it made the determination.”.
subsection, the current section becoming subsection (1):
Insertion of heading and of section 8A in Act 69 of 1996
9. The following heading and section is hereby inserted in the principal Act after section 8:
“PART 1C
MATTERS RELATING TO BENEFITS
Moneys for payment of benefits
SA. Benefits payable in terms of this Act must be paid from money appropriated by Parliament for that purpose.”.
Amendment of section 9 of Act 69 of 1996, as amended by section 3 of Act 75 of 1998
10. Section 9 of the principal Act is hereby amended- by the substitution ‘for subsection (1) of the following subsection:
“ ( I ) The Minister must pay any pension, payable in terms of [this Act] section 1, on the first day of the month in which thepensioner is entitled to that payment, commencing in the month in which the pensioner is first entitled to a payment.”; by the substitution for subsection (3) of the following subsection:
“(3) When the first monthly payment is made to a pensioner in terms of
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- - - [subsection] section 1(4), the Minister must include- therein a lump sum 25 covering all the pension payments due to that pensioner from either 1 April 1995, or the pensioner’s [6Oth] 35th birthday, whichever is the later, to the date of that first payment.”; by the substitution for subsection ( 5 ) of the following subsection:
“(5) The Minister must pay any survivor’s lump sum benefzt payable in 30 terms of this Act, any monthly pension referred to in section 6D or any funeral benefit referred to in section 6F to the beneficiary within 90 days of the date on which the Board notifies the Minister that a benefit is payable to that benejiciary.”; and by the substitution in subsection (6) for paragraphs (a) and (b) of the following 35 paragraphs, respectively:
“(a) the Master of the [Supreme] Hii& Court must appoint an appropriate person to administer that benejit on behalf of the benefzciary; and
(b) the Board, on behalf of the applicant, must take the necessary steps 40 to obtain the required order from the Master of the [Supreme] €&& Court.”.
Repeal of section 10 of Act 69 of 1996
11. Section 10 of the principal Act is hereby repealed.
Amendment of section 14 of Act 69 of 1996, as amended by section 3 of Act 21 of 45 2003 and section 1 of Act 30 of 2003
12. Section 14 of the principal Act is hereby amended- (a) by the substitution for subsection (1) of the following subsection:
“(1) In addition to any benefits granted in terms of this Act, a beneficiary who qualifies as contemplated in [section 1 or 21 section 1,2 50
10 N0.28407 GOVERNMENT GAZETTE, I6 JANUARY 2006
subject to reconsideration and allocation of benefits in accordance with section 6E in the event that another surviving spouse, dependant or orphan not known at the time of the payment applies and qualifies for the same benejt.
(2) The Minister must on payment of a benejt inform the surviving spouse, dependant or orphan i n writing of the provisions of subsection (1 ) .
Repayment of benefit to which person was not entitled
14B. ( 1 ) Any amount paid to a person as a benefit to which that person was not entitled or which was in excess of the amount to which that person was entitled, must be refunded by the person to the Board within 30 days of written demand by the Board.
(a) allow repayment in instalments; or (b) set off any amount due to the Board against any benefit payable in
terms of this Act to the person concerned. (3) Despite subsection ( I ) the Review Board may on the recommendation
of the Board and if it would be just and equitable to do so- (a ) allow repayment of a lesser amount; or (h) absolve a person from repayment of the whole amount or any part
thereof.”.
(2) Despite subsection (1 ) the Board may-
Act No. 27,2005 SPECIAL PENSIONS AMENDMENT ACT. 2005
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or 6D may apply for, and if qualified, may receive payments also in terms of either or both- (a) the [Social Pension Act, 19731 Social Assistance Act, 1992; (b) the Military Pensions Act, 1976.”.
(6) by the substitution for subsection (3) of the following subsection: 5 “(3) BeneJits received in terms of this Acr are taxable, unless exempted
(c) by the substitution in subsection (4 ) for paragraph (a) of the following paragraph:
“(a) Subject to paragraph (b), any person’s right to a pension i n terms of 10 this Act ceases on the day on which that person’s right to a pension=
in terms of the Government Employees Pension Law, 1996 (Proclamation No. 21 of 1996). is recognised as contemplated
under any applicable law.”.
@
in section 30A of that L a w s is recognised in terms of the rules of any other employee 15 pension or provident fund or scheme established by or under any pension law.”.
(ii)
Insertion of section 14A in Act 69 of 1996
13. The following sections are hereby inserted in the principal Act after section 14:
“Reconsideration and allocation of benefit paid 20
Amendment of section 22 of Act 69 of 1996
(3 14. Section 22 of the principal Act is hereby amended by the substitution in subsection ) for paragraphs (b ) and ( c ) of the following paragraphs, respectively:
“(b) the [Exchequer Act, 1975 (Act No. 66 of 1975)l Public Finance Management Act, 1999 (Act No. 1 of 1999); and
(c) the [Auditor-General Act, 1995 (Act No. 12 of 1995)] Public Audit Act, 2004 (Act No. 25 of 2004)’’.
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Amendment of section 23 of Act 69 of 1996
15. Section 23 of the principal Act is hereby amended- (a) by the repeal of subsection (1); and
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Act No. 27,2005 SPECIAL PENSIONS AMENDMENT ACT. 2005
assign any of the functions Contemplated in subsection (2) to an officer in the public service.
(6) A delegation or assignment contemplated in paragraph (a) does not
(b) by the substitution in subsection (6) for paragraph (b) of the following paragraph:
“(b) subject to the [Exchequer Act, 1975 (Act No. 66 of 1975)] Public Finance Management Act, 1999 (Act No. 1 of 1999), is accountable for all State money that the Board receives or pays, and must keep the records needed to comply with that Act.”.
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Substitution of seetion 27 of Act 69 of 1996, as amended by section 6 of Act 75 of 1998 and section 5 of Act 21 of 2003
posthumous child, an adopted child and a child born out of wedlock, that-
16. The following section is hereby substituted for section 27 of the principal Act:
“Dissolution of Board 10
17. Section 28 of the principal Act is hereby amended by the addition of the following
“(6) The Minister must dissolve the Review Board within a period of 90 days
(7) Upon dissolution of the Review Board, the Minister is responsible for the
subsections: 30
after dissolving the Board in terms of section 27( 1).
performance of all the functions of the Review Board.”.
Amendment of section 31 of Act 69 of 1996, as amended by section 9 of Act 75 of 35 1998
14 No. 28407 GOVERNMENT GAZETTE. 16 JANUARY 2006
Pensioner Surviving spouse of pensioner Child
Act No. 27,2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
R7 500 35 R 7 500 R 3 ooc)
I (6) is under the age of 23 and a full-time student; or ( c ) suffers from a permanent and total disability on the date of the pensioner5 death, irrespective of his br her age;”.
( e ) by the substitution for the definition of “pension” of the following definition: “‘pension’ means a right to the monthly payment o f a pension determined in terms of section 1 or section 6D;”; and
by the insertion after the definition of “Minister” of the following definition:
[a) has no surviving parent or of whom the other parent is unknown; 10
jb) has a surviving parent, but the whereabouts of that parent are unknown; or
IC) has a surviving parent, but has been abandoned by that parent;”.
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(j) “(xiA) ‘orphan’ means a child of the deceased pensioner that-
Amendment of Schedule 3 to Act 69 of 1996 15
19. The following Schedule is hereby substituted for Schedule 3 to the principal Act:
Schedule 3
PENSIONS PAYABLE IN TERMS OF SECTION l(6)
Age category in years 35 but younger than SO SO [but younger than 651 until death
65 and older at the comniencement date
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12 OOO Plus 1 200 for each year of service exceeding 5 years with maximum amount of 42000. Where years of service exceed 25 years, a fixed amount of 84 000. 25 24000 Plus I 200 for each year of service exceeding 5 years with maximum amount of 42000. Where years of service exceed 25 wars. a fixed amount of 84 OOO
Addition of Schedule to Act 69 of 1996 30
20. The principal Act is hereby amended by the addition of the following Schedule:
Schedule 4
FUNERAL BENEFITS PAYABLE IN TERMS OF SECTION 6F
Substitution of Table of Contents of Act 69 of 1996
21. The following Table of Contents is hereby substituted for the Table of Contents of the principal Act: 40
“TABLE OF CONTENTS Section Contents
PART 1
[BENEFITS] RIGHT TO PENSION AND SURVIVOR’S LUMP SUM BENEFIT
I . Right to pension 2. 3. 4. 5. Allocation of survivor’s benefit
Right to a survivor’s lump sum benefit [Payment to survivor on death of pensioner] One benefit only to be granted
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Act No. 27,2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
6. 6A.
Applications for benefits under Part 1 Lapsing of Part I , and certain savings
PART 1A
BENEFITS ON DEATH OF PENSIONER
6B. Limitation on benefits payable under Part 1A 6C. Right to lump sum benefit 6D. Right to monthly pension 6E. Allocation of equal shares in benefit 6F. Funeral benefits 6G. Applications for benefits under Part 1A
PART 1B
DETERMINATION BY BOARD AND APPEAL
7. Determination by Board 8. Right of appeal against Board’s decision
PART 1C
MATTERS RELATING TO BENEFITS
8A. 9. Payment of benefits 10. 1 1 . . . . 12. Increases in pension amounts 13. Pensions cannot be assigned or attached 14. Qualilicatioii for other benefits I4A. Reconsideration and re-allocation of benefit paid 14B. Repayment of bencfit to which person was not entitled
Moneys for payment of benefits
[Payments to other public pension funds]
PART 2
15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28.
29. 30. 31. 32.
SPECIAL PENSIONS BOARD
Establishment of Board Appointment of members Remuneration of members Conduct of members Board to be unfettered Board business Staff and contractors Chief Executive Officer Board finances Duties and powers of Board Board investigations Legal proceedings against Board Dissolution of Board Review Board
PART 3
GENERAL PROVISIONS
Minister’s powers Offences Definitions Short title and commencement
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Act Nu. 27, 2005 SPECIAL PENSIONS AMENDMENT ACT, 2005
SCHEDULES
Schedule 1: CRIMES AND LIST OF ACTS
Schedule 2: APPLICATION FORM FOR PENSIONS
Schedule 3: PENSIONS PAYABLE IN TERMS OF SECTION l(6)
Schedule 4: FUNERAL BENEFITS PAYABLE IN TERMS OF SECTION 6F”. 5
Retrospective application of certain section
22. Section 6D of the principal Act must be regarded as having come into operation on 1 December 1996.
Short title and commencement
23. This Act is called the Special Pensions Amendment Act, 2005. 10