Critical decision from the Supreme Court for pensions!

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Lerato Khumalo

A remarkable decision that concerns millions of retirees and citizens whose retirement transactions are ongoing came from the Supreme Court. The 10th Civil Chamber of the Supreme Court of Appeals made an evaluation regarding the date from which the interest to be applied on the salaries to be paid retroactively will begin in a case filed due to the late payment of the pension.

In the incident in question, an insured person requested that it be determined that he was entitled to an old-age pension as of July 13, 2018. The insured also requested that the unpaid pensions be collected from SSI, together with the highest deposit interest applied by the banks, starting from each payment date.

The first instance court ruled that the insured was entitled to receive an old-age pension as of October 1, 2018. The court decided to make the missing payments between October 1, 2018 and April 1, 2019, together with legal interest.

SSI’s application for appeal against the decision was rejected on merits by the Regional Court of Justice.

After the file was brought to the Supreme Court of Appeals, the 10th Civil Chamber of the Supreme Court of Appeals overturned the local court and appeal decisions in terms of procedure and calculation.

The Supreme Court did not find it procedural to directly apply to an expert report to determine the net pension amount without obtaining official information and opinions from the relevant units of the SSI.