Ex-Ford workers told they lose out on R200m surplus

By Michael Roux van Zyl

FORD pensioners in Port Elizabeth have been left in the lurch after hearing from the motor company yesterday that they are not entitled to pension fund surpluses of more than R200-million.

More than 200 pensioners assembled in the Eastcape Training Centre to attend a presentation by the Ford Motor Company South Africa Pension Fund and its administrators, Alexander Forbes.

The issue was the Ford pension fund history and possible surplus payments to which the pensioners and retrenched workers felt they were entitled.

The Port Elizabeth base of Ford pensioners is the biggest in the country. They have been battling confusion over the pension fund since Ford disinvested in South Africa. A large part of the company’s operations moved to Pretoria to the new South African Motor Corporation (Samcor) in 1985.

FMCSA fund representative Egbert Steyn said there was no surplus after Anglo American took over the fund in 2001.

“The FMCSA fund is currently well-funded with a zero surplus with its assets equalling its liabilities,” Steyn said.

However, Steyn said the fund’s assets were over R600-million.

With its current equity amounting to R430-million, it leaves a surplus of almost R200-million.

“According to the Pension Fund Second Amendment Act of 2001, no pension fund is allowed to have a surplus,” Steyn told pensioners.

Instead the surplus would be paid out to Samcor workers who resigned from the company during the 1986 to 2000 period, said Johan Esterhuizen of Alexander Forbes.

“There are almost 22 000 former employees who could potentially benefit from the surplus apportionment.

“They have to register with Alexander Forbes to receive the funds,” Esterhuizen said.

Steyn said the trustees of the fund initially wanted to share the surplus among all beneficiaries of the fund.

The trustees then took the issue to court in 2003 and a judgment was made against the FMCSA fund.

“We decided not to oppose the judgment. Now we have started a process to finalise the transfer and it will be finished by the last quarter of 2006,” Steyn said.

Nadine Tansley said the pensioners in Port Elizabeth felt grossly neglected for not receiving a cent of the surplus.

“There are more than 1 000 people, especially in the townships, who were retrenched in 1985 and are still waiting to receive some of the surplus funds. The effect of Ford leaving our city was devastating,” Tansley said.

Ford pensioner Tony Snape said: “This is a shock to all of us.”

Ford left the country and its operations were taken over by Samcor. Anglo-American owned 58 per cent and Ford, 42 per cent. Anglo-American Group Pension Funds took control of the Ford SA pension fund.

In 1994 Ford reinvested in South Africa and in January, 2000, Ford announced it was acquiring Anglo-American’s interest in Samcor and the Ford Motor Company Pension Fund was established in 2001.

After that, all assets and liabilities belonging to the Anglo American fund were to be transferred to the FMCSA pension fund.

The pensioners said that a part of the R56-million in the Ford Motors pension fund during the 1985 transfer to Anglo-American allegedly went missing.

“Whether the funds were used for other means or not, we have no authority to answer this,” said Steyn.

“Nothing can be done about it as that fund was de-registered and does not exist anymore. We can only speak for current funds.”

Steyn said that if any funds had gone missing, Anglo American actuaries would have picked this up.