Enjoyed reading our story? and amortisation (EBITDA) increasing by R5.6 billion in 2020, primarily as a result of an increase in revenue and the results of cost-curtailment efforts. Exxaro Learnership. Never miss important updates! It allows for tariffs to be hiked from the beginning of April. Defined contribution funds generally transfer the risk of market volatility to members, but often this is a preferable outcome because members pensions are increased. But people are living longer and the money is stretching thin as the fund show sub-bar investment returns, soaring operational costs soaring in an environment of unprecedented uncertainty. Download BRIEFLY's news app on Google Play now and stay up-to-date with major South African news! Once you are done applying for your the position of your choice, please wait up to 4 weeks after the closing for the official announcements. The union has rejected the 7% increase from Eskom, saying it will go back to the negotiating table. For the poor pensioners that rely on the monthly income to cover the living cost, the below-inflation increases in annual pay make it almost unaffordable. This comes after Eskom and the National Energy Regulator of South Africa reached an agreement on the matter. Cabinet approved the suggestion by President Cyril Ramaphosa to nominate the … There are around 80000 members in total. Zelle, a leader in the U.S. peer-to-peer payments market, logged 842 million transactions totaling $217 billion through September, a 64% increase from a year ago. The fact that Eskom is seeking to change its approach is a further indication the financial stress test finds itself in dangerous territory, and with Eskom needing its own bail-out money, there is no way they can’t spare any cash to cover a position of a possible shortfall in its pension fund. ESKOM HOLDINGS SOC LTD Appellant. Eskom executive appoints six representatives, and currently, employees have two seats. The amount will increase as more IPPs are expected to reach commercial operations and further add to the 150c/kWh Eskom says it needs to be sustainable. But that was six months ago, and as the Covid-19 pandemic, and market crashes that ensued, regular life is changed in a second, leaving the fund stuck between a rock and a hard place. However, he says, the actions of the employer can also lead to affect the financial position of the fund. The order allows the state-owned entity to recover costs incurred for the production of power, Eskom explained in a statement. Vote 14 But he did confirm that “Eskom’s position is that it is not liable to make any shortfall in the EPPF, should it arise”. The US has seen a 43% increase spread between borrowing by the government and corporates. The government has had a major fallout with public sector unions after going to court to oppose parts of the 2018 wage agreement that could have seen salary increases of … These improvements were largely offset by an increase in primary energy expenditure. 10 December 2020 - 14:22 ... inquiry probing the capture of Eskom and other parastatals in November 2017 that ... in June 2015 when Wood recruited her back with a big salary increase … The rules of the Eskom Pension and Provident Fund (EPPF) set the employer’s contribution rate at a fixed rate of salary,” it says. NB: ESKOM ONLY ALLOW ONE APPLICATION PER APPLICANT. Eskom says “The group pays a fixed contribution to the fund and has no legal or constructive obligation to make good a shortfall should it arise”. “As the fund has been in a net (positive) asset position since its commencement, Eskom has not previously provided any additional contributions to meet the benefits payable as per the benefit formula.”, It would seem that only a forced liquidation, will force Eskom’s hand into raising its contribution, to cover its covenants, Whether Eskom will give its consent when called upon, is impossible to know, and the EPPF is left to steer this ship safely and sustain the required funding ratio. This latest decision means that the period of three years over which Eskom ⦠You can keep visiting the site for updates at www.eskom.co.za. ... acceded to the settlement proposal the utility made a month ago of 7.5% increases for 2018 and 7% for 2019 and 2020. The spelling of names in this story has been corrected. BM. The High Court has ruled that Eskom may recover R10 billion from consumers, allowing the power utility to increase electricity tariffs by 16%. So using a legal opinion to grant this longer leash, Eskom has by definition cut down a contingent liability. The 2020 basket, after the worst of the lockdown, averages at 5.6% higher than in 2019, reflecting the price spikes, despite a low inflation environment. Power lines run from one of Eskom's coal fired power stations near Villiers, South Africa, 29 August 2019. Hence, future income earned is mostly based on future investment returns. BusinessTech reports that Elize Kruger, an independent economist, had commented that rising prices would place added pressure on middle-income groups. Further, Eskom has managed to provide additional employment for over 10,000 more cadres since 2007. and. Income vulnerability decreased as the sub-index improved from 44.1 points in Q3 2020 to 47.7 points in Q4 2020. During the year, savings of R16.3 billion were achieved against a target of R6.2 billion. via wikigb.com Feed https://ift.tt/3oXgwRG. Consumers will pay ⦠Exxaro Resources is a large coal and heavy minerals mining company in South Africa. The liabilities of the EPPF according to the valuator’s certificate included in the 2020 financial statements were approximately R101-billion, but even if the fund drops in value by as little as 1%, that is a loss of R1-billion, which our economy will struggle really hard to withstand. Earlier, Briefly.co.za reported that Eskom has reduced its workforce by around 2 000 over the past year in an effort to slim down its bloated salary bill. I hope that Eskom can continue in this manner until at least 2030. If they can realise a financial gain now and reduce future liabilities, is it something they may be considering given the plight of the company? SA High Court Latest News - Highest Provincial Court News. The focus of the GEPF is to manage our fund’s assets in a manner that meets or outperforms the fund’s current and future liabilities. 15 November 2020 Read More Media Statement by Minister of Public Works and Infrastructure, Patricia de Lille, MP 29 October 2020 Read More Eskom says. Please note you must be a Maverick Insider to comment. ... 21 November 2019. Eskom as the employer still fills the most seats at the table of trustees. Apologies for the error. And this year the fund reported that former Eskom CFO Anoj Singh is also on the bandwagon unlawfully belonging to the membership scheme. Applications for the Eskom Artisan Learnerships must be submitted before the closing date on 18 December 2020. Honour Cuban doctors & increase salaries for SA health workers - Nehawu. “The VSP programme included 3,246 employee acceptances across all categories and closed at the end of August 2020. Eskom will now implement the increase from 1 April. We encourage different, respectful viewpoints to further our understanding of the world. The MTN Group has reported an 11.9% increase in service revenue of up to R170 billion in its 2020 … We even have the first steps of the plan. Independent legal opinion during the year confirmed that Eskom has no legal obligation to fund any shortfall that may arise. Featured: Entrepreneurship becomes lifeline for university graduates. MobileWiki. Eskom will formally advertise all its opportunities through the Eskom Recruitment website as and when required. That’s what we want from our members. 625 views 13:17. “The group pays a fixed contribution to the fund and has no legal or constructive obligation to make good a shortfall should it arise”. Sign up here or sign in if you are already an Insider. The rules of the Eskom Pension and Provident Fund fund specify SA’s largest private pension fund is structured as a defined benefits fund, which usually means that the employer underwrites the contingent liability to guarantee the payment perks agreed upon when a worker is appointed. Donald TrumpDonald John Trump is the 45th and current president of the United States. In 2020 we successfully completed 35 paediatric surgeries, amidst the pandemic,” says Sister Basha. Help us learn with your expertise and insights on articles that we publish. ... court held that a valid contract between the parties providing for the initial salary increases could not have lawfully come into existence in the absence of authorisation â Labour Courtâs judgment set aside and Appeal upheld with costs. But the other side of this coin, the fund describes itself a defined benefits scheme, an implied surety that salary of service is set for life. But what Eskom fails to say, despite the fund’s declaration of independence and the only SOE that supports a separate and private institution. The move will also place industrial and retail businesses under more strain, according to Kruger. We couldnât, however, pay a higher increase. The scheme delivered an average 5.6% per year increase of pension payments from 2003 to 2013 and since then a little less; the 2019 increase was 5.2%. So the fact that members and pensioners of the EPPF interpret the rules differently is irrelevant, as Rule 36.1(3) allows the money managers to reduce the benefits of active members and poor pensioners. A defined contribution fund means members are paid a pension according to what they and the company contributed over the years, plus what their investments have garnered over the years. A defined benefit fund is based on a fixed formula, often based on the last salary slip of the member which gets paid in perpetuity. The losses made were a sub-par investment performance. And it is well documented that the fund is playing the private equity field hard, and such investments are way too illiquid for a rainy day. Get the latest news and analysis in the stock market today, including national and world stock market news, business news, financial news and more If members on average happen to live a long time, that can land defined benefit funds with a big obligation. Select which newsletters you'd like to receive, So using a legal opinion to grant this longer leash, Eskom has by definition cut down a contingent liability. Eskom contends that approving increases by 9.41% for 2019-2020, 8.10% for 2020-2021 and 5.22% for 2021-2022 instead of the requested 16% was insufficient. Why Eskom CEO André de Ruyter is under siege ... that the average SA homeowner saved about R28,000 on bond repayments in 2020.That is based on the change in … The EPPF rules further provide that a decision to increase contributions (employer and employee) would be made by the EPPF Board of trustees in consultation with the appointed actuary, not by Eskom’s management. Itâs below inflation and they were agitating for us to pay a higher increase. And they are preparing for the surge in retrenchment payouts of Eskom’s staff realisation plans, and of course, refunding the contributions to a stack of illegal members that contributed for some time. Is this a prelude to a possible “sale” or “transfer” of the fund away from Eskom? Removing advertising from your browsing experience is one of them - we don't just block ads, we redesign our pages to look smarter and load faster. For active members in service, this could mean that the current accrual rate they raise during pensionable service is pinched, and possibly be further reduced for future salaries. Over the last two years, the increase awarded to the pensioner community was cut to just 1%. PAY ATTENTION: Join Briefly News' Telegram channel! For example, higher than expected salary increases can lead to losses. Eskom unions accept 7.5% pay increase. It allows for tariffs to be hiked from the beginning of April. He had used the platform to clarify that a number of top officials at the power utility had received pay increments and even hefty bonuses at a time when the state-owned utility's finances had been in a questionable state. The average salary for a Mechanical Engineer is R 466 662 per year in South Africa. But what Eskom fails to say, despite the fund’s declaration of independence and the only SOE that supports a separate and private institution. Please sign in or register to enable this feature. Ailing power utility, Eskom wants to pay workers R1.8 billion in performance bonuses, according to a report in the City Press, citing court papers filed by the National Energy Regulator of SA. About Telkom Job Vacancies 2020-2021 Telkom is offering several job vacancies for talented South African individuals who are interested in working for a world-class telecommunications company. Telkom is here to ensure that all your needs can be met, and more importantly, to increase the quality of your life. Leave your email to receive our newsletter, Get the news that matters from one of the leading news sites in South Africa, Drop your mail and be the first to get fresh news. A 2019 report by cleaning company SweepSouth found that there was an increase in the average national domestic worker wage to R2,699 per month after the minimum wage was introduced. This suggests that more consumers were able to earn or increase their income. This is Rule 36.1(3), which allows for either an increase in contributions from employees, with the consent of Eskom of course, or a reduction in benefits the required recourse. For the six months to September 2020, Eskomâs sales volumes fell 10.3% to R108.7 billion, as a result of the Covid-19 national lockdown that came into effect in March. Eskom states in its financials, that “[t]he group accounts for its pension obligations as a defined contribution plan in line with IAS 19 Employee benefits. Ever since we implemented the 2% increase at the end of last year for 2020, a number of pensioners, understandably, were quite upset that 2% is below the cost of living. NERSA had appealed a ruling in July 2020 that enables Eskom to boost revenue by R69 billion over the course of the next three years. Sikonathi Mantshantsha, the Eskom spokesperson, has defended the position of the utility’s stance by stating that Eskom views the liability in the EPPF as a DC in terms of the International Financial Reporting Standards (IAS Employee Benefits) and the benefits are calculated by a formula in terms of the rules of the fund. According to Erich Kröhnert, Director at Ultreia Consulting Services, the benefit butchering comes down to actuarial valuations. Eskom executive appoints six representatives, and currently, employees have two seats. The CEO remained silent on whether or not Eskom intended on reducing its workforce to this point, instead explaining that the reduction had taken place by retirement and voluntary severance packages. There are around 80000 members in total, MAVERICK INSIDERS CAN COMMENT. Japan has seen a 50% increase. Eskom CEO Andre de Ruyter has begun to implement the unbundling plan. Some … It is different from its defined contribution counterpart, in which members get only what they have put into the fund plus the market returns over the years. More needs to be done to increase vaccination efforts - SAMRC's Grey ... she'll never have that salary or cast again ... in Johanneburg on 10 September 2020. Image: Waldo Swiegers/Bloomberg Source: Getty Images. This is done by providing Asset Managers such as the PIC with a mandate that outlines which type of investments can be made, the percentage allocations for each asset class, benchmarks and performance targets, among other guidelines. This has put the fixed funding model at serious risk. Eskom is battling to service R464 billion in debt and has frequently commented that tariffs do not reflect its costs. Eskom employees to get pay hike of up to 10%. This is Rule 36.1(3), which allows for either an increase in contributions from employees, with the consent of Eskom of course, or a reduction in benefits the required recourse. How to Apply Implats (Impala Platinum) Job Vacancy 2020-2021 Applications to Implats’ job opportunities can be done by clicking on its main online recruitment page . (Photo: EPA-EFE/KIM LUDBROOK). He has been refunded his side of the contribution equation. A public sector union says an increase in the subsidy for medical scheme contributions is cold comfort for its members amid a battle between the government and public servants over salary increases. Thereâs been lobbying, Alec, for a higher increase. View our comments policy here. Nersa, however, only granted Eskom price increases of 9.41% and 8.10% in 2020/21 and 2021/22 respectively. The utility and NERSA have frequently headed to court over their numerous disputes over the price of electricity. Join Briefly News' Telegram channel! Before entering politics, he was a businessman and television personality. The unemployment rate in the fourth quarter of 2020 increased by 1.7 percentage points to 32.5% compared to the third quarter. Delivered: 06 January 2020. On the question of whether and when Eskom will consider an increase in contributions to cover a sudden shortfall, he simply stated the EPPF rules dictate that Eskom’s contributions are fixed. - The High Court has ruled that Eskom may recover R10 billion from consumers, - This has enabled the power utility to hike tariffs by 16%, - This comes shortly after the National Energy Regulator of South Africa agreed to the increase. The order allows the state-owned entity to recover costs incurred for the production of power, Eskom explained in a statement. Despite the reduction, Eskom remains overstaffed, according to its CEO Andre de Ruyter, who says 6 000 fewer employees would be ideal. Everybody has an opinion but not everyone has the knowledge and the experience to contribute meaningfully to a discussion. Eskom Tariff Increase Application: briefing by Eskom and NERSA 14 Sep 2009 Minister of Communications & ICASA on Infraco licencing delay; Minister of Public Enterprises on Infraco & Transnet CEO appointment; Eskom Annual Report 2008/09 & Executive salary increase De Ruyter revealed this in a panel hosted by the Free Market Foundation, during which he explained that the utility has 44 000 employees when instead it should have 38 000. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. All over the world, funds have been moving from defined benefit to defined contribution funds, as the contingent liability for companies has become a risk they can longer afford. BECOME AN INSIDER. Eskom as the employer still fills the most seats at the table of trustees. Sister Basha originally used her nursing hospital salary to fund these lifechanging projects. Click here to see other benefits and to sign-up to our reader community supporting quality, independent journalism. It premiered on Netflix on December 25, 2020. via wikigb.com Feed https://ift.tt/2M2uUt6. Eskom has announced that it achieved progress in some key areas of the business, setting it on a path to operational and financial stability. This is Rule 36.1(3), which allows for either an increase in contributions from employees, with the consent of Eskom of course, or a reduction in benefits the required recourse. Trustees of the EPPF had amended the rules of the fund to facilitate addressing any deficits which may arise in the future. As soon as this changes, the site will be updated accordingly. Relations between the mining industry and the Minister of Minerals and Energy have repaired in the last year. Never miss important updates! Fortunately, the EPPF still states a healthy financial position in its financial reports to the end of June 2020. The battle between the government and trade unions over salary increases for SA’s 1.2 million public servants is far from over. Eskom cuts 2 000 jobs in attempt to reduce bloated salary bill. According to the power utility, this is based on the interim results for the six-month period ending in September 2020. There are many great benefits to being a Maverick Insider. Also, according to payscale.com, an early career Civil Engineer with 1-4 years of experience earns an average total compensation of R326,150 based on 853 salaries. He says that the trustees still need to hold the employer account and have a fiduciary duty to serve the best interest of the members, but scandals like illegal memberships and paid-for trustees, who unlike Brian Molefe were forced to pay back the money following a reportable irregularity in the 2019 audit report. So to reduce such an unpredictable risk, if pension funds fall short of its covenant, it will be forced to fill the gap and pay out according to a fixed schedule. Independent legal opinion during the year confirmed that Eskom has no legal obligation to fund any shortfall that may arise. Government held the line on public sector wages to date for much of 2020 – though that commitment is now in question. MTN Group reports an increase of up to R170 billion in financial year 10 March 2021, 8:32 PM.