{
  "id": 4168821,
  "title": "R5m bill stays after pension fund’s ‘gross negligence’ sinks appeal in SCA",
  "url": "https://urgent.news/2026/08/29/r5m-bill-stays-after-pension-funds-gross-negligence-sinks-appeal-in",
  "topic": "world",
  "section": "World",
  "published": "2026-08-29T10:30:25.000Z",
  "source": {
    "name": "The Citizen",
    "slug": "the-citizen",
    "url": "https://www.citizen.co.za/news/south-africa/courts/municipal-employees-pension-funds-rescission-sca-appeal/"
  },
  "original_language": "en",
  "account": "The Municipal Employees Pension Fund (MEPF) lost its bid to overturn a default judgment that ordered it to pay the Ntabankulu Local Municipality approximately R5.1 million. The dispute began in September 2013, when 101 municipal employees transferred their membership from the South African Municipal Workers Union (Samwu) Provident Fund to the MEPF. Consequently, the municipality redirected pension contributions to the MEPF. The Gauteng High Court found the transfer unlawful, requiring the municipality to repay the employees' outstanding pension contributions to Samwu. The MEPF refunded the municipality for contributions it had already received, but Ntabankulu claimed a further R5.1 million remained outstanding. Despite receiving the default judgment from the high court, the MEPF waited until July 2023 to request rescission, which was dismissed. The pension fund claimed an internal failure and an employee's workload prevented them from defending the case, while the municipality stated the delay was excessive. The Supreme Court of Appeal dismissed the MEPF's appeal, ruling there was no error in the default judgment as the fund was properly served. They criticized the MEPF's lack of a strong case for rescission and the unconvincing explanation for the delay in bringing the application.",
  "summary": "The Municipal Employees Pension Fund had failed to file a notice of appearance to defend.",
  "key_points": [
    "Municipal Employees Pension Fund loses R5.1M default judgment appeal",
    "South African Municipal Workers Union Provident Fund dispute",
    "Supreme Court of Appeal dismisses MEPF's rescission request"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}