Fin24 reports that a group of pension funds in KwaZulu-Natal (KZN) is taking the SA Local Government Bargaining Council (SALGBC) to court for forcing them to get accredited by the council – or lose business from municipalities.

SALGBC reached a collective agreement with the Independent Municipal & Allied Trade Union (Imatu) and the SA Municipal Workers' Union (Samwu) in September 2021 whereby it was agreed to establish a uniform approach to the provision of retirement benefits for municipal workers. Accordingly, all funds that want to continue operating in the local government sector have to get accreditation from the bargaining council. New employees in the local government sector are only permitted to join funds so accredited. According to the last circular on this matter published by SALGBC in May, only 15 funds covering 64% of employees in the sector have applied for accreditation. The KZN Municipal Pension Fund (MPF), which represents several funds operating in the local government space in the province, has launched an objection to SALGBC "playing the role of the regulator". Its arguments will be heard in the North Gauteng High Court in Pretoria in July. The fund is challenging the lawfulness of the collective agreement on the basis that it was implemented without consulting workers or the pension funds. MPF principal officer Thomas Mkhethelwa urged the affected municipalities not to comply with the bargaining council agreement. "The unions don't even run their own affairs. Salga (SA Local Government Association) can't even run the municipalities. Why do they think they can regulate and run pension funds better? What is their interest in wanting to come closer to workers' money?" he asked. He also noted that the funds already have a right to operate in terms of the Pension Funds Act.

• Read the full original of the report in the above regard by Londiwe Buthelezi at Fin24

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