Johannesburg | Saturday
IF the British government had to pay out more than R64-billion in frozen increments to British pensioners living in the Commonwealth, it would mean an automatic increase in National Insurance Contributions for all UK contributors, the London High Court heard on Friday.
In April 2001, British pensioners living outside the Commonwealth received an annual cost of living increment of 7,4 percent, but in South Africa and other Commonwealth countries, many drew the same pensions they received 20 years ago.
This prompted British pensioners living in South Africa to take the UK government to court to try to rectify the discrepancy.
The South African Alliance of British Pensioners (SAABP), which claims to represent about 36 000 pensioners in southern Africa, was granted a judicial review by a London High Court judge.
Lawyers for the British government argued on Friday that UK domestic legislation overruled EU legislation concerning the amount of benefit payable.
They also asserted that increased payment to the deprived pensioners was not affordable to the UK Exchequer.
The UK government maintained that as there was no right in possession to the increase then there could be no discrimination.
Lawyers speaking for the pensioners argued strongly that this was unlawful discrimination.
The key legal point was that the UK government was unable to lead any evidence as to the justification for the policy of pensioner discrimination.
The judge gave the UK government seven days in which to submit further details of reciprocal pension agreements with overseas countries.
Judgment is expected to be issued within the next four weeks. – Sapa