National Tertiary Retirement Fund v Registrar of Pension Funds

The appellant, a registered pension fund, applied to the Registrar of Pension Funds for approval and registration of an amendment to its rules under s 12 of the Pension Funds Act 24 of 1956. The amendment made the payment of certain historically guaranteed retirement benefits conditional upon the relevant employer funding those benefits. This arose from significant deficits linked to guarantees inherited from predecessor funds (AIPF and TEPF) and the introduction of statutory minimum benefits on early withdrawal under s 14A, which created an additional unfunded liability. The Registrar refused to approve and register the amendment, primarily because it reduced benefits and shifted responsibility to employers. The Board of Appeal and the Pretoria High Court upheld the refusal. The fund then appealed to the Supreme Court of Appeal.

The appeal was upheld with costs. The decisions of the High Court and the Board of Appeal were set aside. The Registrar was directed to register amendment number 31 to the appellant’s rules in terms of s 12 of the Pension Funds Act.

The case clarifies the limited nature of the Registrar of Pension Funds’ powers under s 12 of the Pension Funds Act and confirms that the Registrar has no broad discretion to refuse registration of rule amendments that are financially sound and not inconsistent with the Act. It also provides authoritative interpretation of ss 37A and 14A, confirming that they do not prohibit reductions of benefits through lawful rule amendments, and is a key precedent on pension fund governance and administrative law review.