South Africa’s National Assembly has approved the Public Sector Pension and Related Payments Bill, a key legislative move aimed at streamlining payments of pensions and medical benefits to retired public servants.
The Bill, introduced by the Minister of Finance as part of the 2025 Budget, proposes that such obligations become direct charges against the National Revenue Fund (NRF) instead of being routed through the National Treasury’s departmental budgets.
The reform is expected to cut administrative delays and improve consistency in the disbursement of benefits to former presidents, parliamentarians, civil servants and military veterans.
Currently, payments are often slowed by the requirement to trace retirees’ former employing departments, a process the Bill aims to bypass by centralising funding through the NRF.
Parliament said on Thursday that stakeholder consultations led by its Standing Committee on Appropriations has revealed broad support for the Bill.
It cited the Financial and Fiscal Commission (FFC) – a statutory body with the mandate to advise and make recommendations to state organs on financial and fiscal matters – as one of the stakeholders consulted.
The FFC is said to have endorsed the Bill while calling for clearer delineation of roles among the state, the Government Employees Pension Fund and beneficiaries.
The National Assembly also said the Congress of South African Trade Unions backed the legislation, commending its protection of pension entitlements and alignment with labour agreements.
The Bill now heads to the National Council of Provinces for approval, after which it will be sent to President Cyril Ramaphosa for his signature.
JN/APA