Cape Town — South Africa’s National Assembly has approved the Public Sector Pension and Related Payments Bill, a major legislative step aimed at streamlining the payment of pensions and medical benefits to retired public servants.
The Bill, introduced by Finance Minister Enoch Godongwana as part of the 2025 Budget, seeks to make these payments direct charges against the National Revenue Fund (NRF), effectively bypassing the National Treasury’s annual budget process.
The move is expected to reduce administrative bottlenecks and delays in disbursing benefits to retired officials, including former presidents, Members of Parliament, military veterans, and other government employees.
“The current payment system makes it difficult for National Treasury to pay the benefits, as there are administrative requirements to track which department each retired claimant worked in, causing delays and complications.
“The new Bill will fix this by simplifying how and where the payments come from,” a statement said.
[WATCH] Making her maiden speech in the National Assembly, ANC MP, Cde Olga Seate says, “To avoid exclusion errors and unfairness in the retirement system of non-contributory pension benefits and medical contributions, National Treasury is proposing the Public Sector Pension and… pic.twitter.com/bPIsYvyFAL
— ANC Parliament (@ANCParliament) June 24, 2025
The Bill was subject to public consultations led by Parliament’s Standing Committee on Appropriations, which received submissions from several key stakeholders. The Financial and Fiscal Commission endorsed the Bill’s overall intent but flagged concerns over fiscal transparency and role clarity between the state, the Government Employees Pension Fund, and public servants.
The Parliamentary Budget Office also backed the Bill, emphasising that parliamentary oversight must be maintained for any future changes. The Congress of South African Trade Unions (COSATU) gave its full support, highlighting the Bill’s importance in protecting workers’ rights and honouring long-standing agreements.
However, the Standing Committee raised a key objection to a clause stating that proposed amendments to the list of benefits would automatically take effect if Parliament failed to respond within three months. The committee called on the Minister of Finance to remove this clause in the next round of legislative revisions.
In its report, the committee also recommended that the Minister provide written feedback addressing its concerns and commit to keeping Parliament updated on all future developments regarding public sector pensions.
With the National Assembly’s approval, the Bill now heads to the National Council of Provinces for concurrence.
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