Judgement fair or not

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Judgement fair or not

These issues arise within the context of a challenge to the constitutionality of certain rules of the Political Office-Bearers Pension Fund the Fund Judgement fair or not provided for differentiated employer contributions in respect of members of Parliament and other political office-bearers between and The first is that the relevant rules of the Fund offend the equality provisions of the Constitution because they are unfairly discriminatory.

The second ground is that, in any event, the Fund as a whole is a nullity because it was not validly established under section A of the interim Constitution [1] or section of the Constitution. He served as a National Party member of the old Parliament from to With the advent of the new democratic Parliament inhe was returned to office for the same political party as member of the National Assembly until April Factual background [4] From tothe pension benefits of members of the tricameral Parliament and of other political office-bearers were regulated by statute.

There had been speculation by parliamentarians and other political office-bearers of the time that the new political regime may not continue to pay their pension benefits. The negotiating parties agreed that a pension fund exclusive to members of the old Parliament and other political office-bearers of the time would be established and fully funded to pay defined benefits to its members, whether they were re-elected or not as members of the first democratic Parliament of As its name intimates, the CPF had several exclusionary features.

Only members of Parliament and political office-bearers who held office before could become its members. It follows that persons who were elected to Parliament for the first time in the general elections were excluded. A further significant feature is that members of the old Parliament who on the 26 April had not served for a period of seven and a half years were entitled only to a gratuity.

The pension liability of the CPF to its beneficiaries was to be fully financed by public funds and not based on employer or employee contributions. A new pension fund for the new Parliament had to be brought into being. This was in fact a constitutional obligation under section A of the interim Constitution.

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The setting up of a new pension fund was a venture that would take time. In JuneParliament supported recommendations on the formation of the new pension fund, with four political parties in Parliament dissenting.

On 13 Augustthe report was debated and adopted by the National Assembly with only one party dissenting. The rules of the new fund were finalised and registered in terms of section 4 4 of the Pension Funds Act.

Rule 2 spells out the categories: However, the contributions payable by the various employers [20] within the Fund are calculated according to a differentiated scale. From 1 Maythe differentiation between the three categories fell away, and the contribution of employers became standardised for all members at a rate of one-twelfth of 17 percent of their annual pensionable salaries.

The High Court held the differentiated employer contributions to be unconstitutional and declared them invalid. However, no order was made regulating the consequences of the declaration of invalidity on the Fund and its members.

They argued that the purpose of the differentiated scheme of employer benefits was to advance equality by identifying three separate indicators of need for increased pension benefits over a finite period. In that way the scheme rationally pursues a legitimate governmental purpose of distributing pensions on an equitable basis.

Its effect on the respondent and members of his class is that they remain considerably privileged and better off in respect of their pension benefits than members of the favoured categories A and B.

Moreover, it was submitted, the scheme is neither unfair nor invasive of the dignity of anyone. The complaint of the respondent and his class is not one that says the scheme invades their dignity but rather one propelled by financial benefit out of public funds and a desire to maintain historical privilege.

The party implementing the measures must show them to be fair. The differentiation here, he argues, is informed by race because the scheme has a disproportionate impact on white, coloured and Indian members of Parliament as against two black members.

In his view, limited resources do not necessitate the scheme, as the state cannot credibly claim that it cannot afford to pay pension contributions for all members at the same level.

After all from it did. In emphasising the point that the state is not out of pocket, the respondent draws attention to an announcement by the Minister on 12 Novembera date after the judgment of the High Court, that the national treasury plans to put aside as a budget item R million for additional service benefits for members of Parliament and of provincial legislatures.

It is contended, however, that this is not so in all cases. The respondent points to 15 category C members who are saddled with membership of the CPF without the benefit of generous pensions.

Judgement fair or not

As a result, he submitted, the adverse impact of the scheme on the jammergevalle is sufficient to render the employer contributions scheme as a whole unfairly discriminatory. Equality and unfair discrimination [22] The achievement of equality goes to the bedrock of our constitutional architecture.

When our Constitution took root a decade ago our society was deeply divided, vastly unequal and uncaring of human worth.A judgment is simply the official decision of a court at the completion of a lawsuit. It merely indicates that the court has resolved the issues brought before it in a lawsuit in .

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Judgement fair or not

Learning from deaths of people in their care can help providers improve the quality of the care they provide to patients and their families, and identify where they could do more.

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