The South African Municipal Workers’ Union says it has been inundated with complaints from members unable to access their two-pot retirement savings since the amended Pension Fund Act came into effect on 1 September 2024.
The municipal union said its members have raised complaints about unprocessed claims, unanswered calls, ignored emails, and sometimes closed pension fund offices.
Dumisane Magagula, SAMWU General Secretary, said the Municipal Workers Retirement Fund, formerly the SAMWU National Provident Fund, has emerged as a major culprit.
Despite its origins as a union-initiated scheme, MWRF has struggled to fulfill its obligations to municipal workers since rebranding in 2022.
Magagula said SAMWU requested an urgent intervention and requested a meeting with MWRF Principal Officer Themba Mfeka on 12 October 2024.
“However, Mfeka scheduled the meeting for nearly a month later, on 6 November, only to delay it further,” said Magagula.
“Adding to members’ frustrations, Mfeka insisted that municipal workers—who had traveled from Welkom to Johannesburg at their own expense—return home without addressing their grievances. SAMWU refused, standing by its members while clarifying that the workers’ actions were not union sanctioned.”
Magagula said Mfeka further fueled tensions by accusing SAMWU of fabricating complaints over a denied R13.8 million sponsorship request.
SAMWU refuted this claim, clarifying that the figure represented the estimated costs of shop steward elections and congresses and that MWRF was free to determine its sponsorship contributions.
SAMWU said to protect its members, it plans to file a formal complaint with the Financial Sector Conduct Authority (FSCA) against MWRF and other non-compliant funds.
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