The Emfuleni Local Municipality is one of three local municipalities comprising the Sedibeng District Municipality which includes Sebokeng, Evaton and Vanderbijlpark in Gauteng.
“To date, our efforts have been in vain and it is for this reason that there are now legal proceedings between us and Emfuleni before both the pension funds adjudicator and the South African Local Government Bargaining Council ,” Dladla-Nkadimeng says. The LAMPF was established as an umbrella occupational retirement fund for municipal employees in 1994 and was initially underwritten and administered by Sanlam. For some time, there were a number of municipal employers across the country participating in the fund but in recent years, Emfuleni has become the only contributor. Liberty has since taken over the administration of the scheme.
Says Dladla-Nkadimeng: “Not only are we on the hook for much higher premiums than our colleagues, we are also taxed on a scheme structured as a fringe benefit. Worse still, many of the claims to disability benefits in terms of the insurance policy have been rejected, as it stipulates that applicants be 100% incapacitated to qualify, while the council boards its members at a level of 75%.”
Although both the Pension Funds Act and the rules of the LAMPF require that its members be given the right to elect at least half of the members of the board, current trustees were simply appointed in 2013 by the previous board. Members were not given the opportunity to elect their own representatives or to elect members of the board.
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