The Municipal Workers Retirement Fund is pleased to share an important update with our members and pensioners.
The matter was first brought by the Fund to the Gauteng Division of the High Court concerning the Retirement Fund Collective Agreement of 2021, and was heard on the 13 and 14 October 2022. On the 20th of February 2023, the court ruled in our favour against the South African Local Government Bargaining Council which involves SALGA, SAMWU and IMATU. These parties in the bargaining council took the matter to appeal which was delivered on the 21st of August 2025.
Again, the Supreme Court of Appeal ruled in favour of the MWRF. The Court set the agreement aside in its entirety, finding that it was unlawful, and it is a significant victory for the protection of your retirement savings.
The MWRF challenged the agreement for one reason: it threatened the independence and security of your retirement fund. The agreement sought to create an accreditation scheme that would have given an outside body far-reaching powers over retirement funds in the local government sector, including powers the law does not allow. The Court agreed with the MWRF that this could not stand.
The Court also confirmed principles that matter deeply to every member. The rules of your MWRF are binding and cannot be sidestepped or changed under outside pressure. Pensioners and members who do not belong to a union are important stakeholders whose interests must be considered before any decision that affects their benefits. And the protections given to you by the Pension Funds Act cannot be taken away by any agreement.
The parties in the bargaining council further approached the Constitutional Court for an application for leave to appeal, which application was refused on 29 September 2026.
For you, dear members, the message is simple and reassuring. Your contributions and savings remain protected and secure. Your benefits continue as normal and your contributions carry on exactly as before. No action is required from you as a result of this ruling.
We did not take this matter to court lightly. The Principal Officer, the Board of Trustees carries a legal duty to act in the best interests of members and pensioners and pursuing this challenge was part of honouring that duty. The outcome confirms that we, as your Fund, acted correctly in defending the MWRF’s independence.
The MWRF remains committed to working constructively with all stakeholders in the local government sector and to the shared goals of good governance and secure retirement outcomes for all who serve our municipalities.
Thank you for your continued trust in the Municipal Workers Retirement Fund. Protecting your retirement remains our purpose, today and always.
Municipal Workers Retirement Fund
For enquiries: IMonamane@mwrfund.org.za | +27 11 727 2800
