25 November 2024
The South African Municipal Workers’ Union (SAMWU) has been inundated with calls and emails from frustrated members unable to access their two-pot retirement savings following the implementation of the amended Pension Fund Act on 1 September 2024. Many workers report that their claims are not being processed, calls to pension funds go unanswered, email queries receive no response and their offices are closed.
The Municipal Workers Retirement Fund (MWRF), previously known as the SAMWU National Provident Fund, has emerged as the most problematic fund in this regard. Despite its origins as a union-initiated scheme, MWRF has consistently failed to honour its commitments to municipal workers since rebranding in 2022.
SAMWU sought answers by requesting an urgent meeting with MWRF’s Principal Officer, Mr Themba Mfeka, on 12 October 2024. However, Mfeka failed to recognise the urgency of the matter, only scheduling a meeting nearly a month later, on 6 November 2024. Even then, Mfeka delayed the virtual meeting, displaying blatant disrespect towards members and their concerns.
The meeting could not proceed because Mfeka demanded that SAMWU instruct workers—who had travelled from Welkom to Johannesburg at their own expense to demand answers—to return home without addressing their grievances. SAMWU could not abide by this demand as the action by workers wasn’t sanctioned by the Union. SAMWU also did not disown its members and condemn the action.
To make matters worse, when approached by the media about members’ complaints, Mfeka falsely accused SAMWU of raising these issues out of spite because MWRF allegedly declined a R13.8 million sponsorship request. This is a deliberate fabrication. The R13.8 million referenced by Mfeka is the total estimated cost of SAMWU’s Shop Steward elections and Congresses and was never requested from MWRF only. MWRF was expected to be liberty to elect how they would sponsor the programs of the Union. Furthermore, our sponsorship request—dated 27 September 2024—was made before the Union became aware of MWRF’s widespread failures.
Systematic Failures and Financial Risks
SAMWU has verified reports from members that MWRF is unresponsive to phone calls and emails, and workers continue to face delays in accessing their legally entitled funds. These failures raise serious concerns about MWRF’s financial stability and its ability to honour its obligations to current and future retirees.
SAMWU suspects that MWRF’s delays may be linked to deeper financial issues, putting thousands of municipal workers at risk of losing their hard-earned retirement benefits. This negligence is an insult to the workers who have entrusted MWRF with their livelihoods.
Taking Action
To address these failures, SAMWU will:
· Lodge a formal complaint with the Financial Sector Conduct Authority (FSCA) against MWRF and other non-compliant funds, calling for an investigation into their operations.
· Escalate the fight for a pension fund window period in the local government sector, enabling workers to transfer their savings from poorly managed funds like MWRF to more reliable alternatives.
Municipal workers deserve better. SAMWU remains unwavering in its commitment to protecting the rights and financial security of its members.
Issued by SAMWU Secretariat
Dumisane Magagula, General Secretary (076 580 4029), Nkhetheni Muthavhi, Deputy General Secretary (073 375 9645) or Papikie Mohale, National Media Officer (076 795 8670).
