Massive pension boost for MPs

Cape Town - A whopping R2.5bn has been earmarked by Treasury for politicians' pensions.

According to the Adjusted Estimates of National Expenditure tabled by Finance Minister Trevor Manuel on Tuesday, the money "has been allocated for the Political Office Bearers Pension Fund".

This means that more than 10% of this year's additional total appropriation of R24.4bn is to be used to improve the pensions of contributing MPs and MPLs.

The document notes this major improvement to politicians' retirement prospects in a chapter dealing with parliament's budget vote, where it is listed as an "unforeseeable/unavoidable" additional appropriation.

According to Treasury officials, the pension scheme - currently a "defined benefit" fund - serves both national and provincial politicians. It has about 865 members.

This meant individual members got back "what you have put in and what the State has put in", one official told Sapa.

Last week, the commission headed by deputy chief justice Dikgang Moseneke, which has been tasked to examine remuneration for public office bearers, recommended significant improvements to politicians' pensions.

According to reports, these include - for MPs and MPLs who have served less than a five-year term - a once-off gratuity equal to 45% of their pensionable salary for every year of service.

Those who have served for longer than five years will get a cash payout equal to four months' salary for each five-year term of service.

Manuel told the National Assembly on Tuesday that the R2.5bn was a once-off allocation.

"[An amount of] R2.5bn is recommended in the adjustment appropriation bill as a once-off allocation for the Political Office Bearers Pension Fund on the basis of recommendations made by the Commission on the Remuneration of Public Office Bearers, chaired by Judge Dikgang Moseneke," he said.

- Sapa