Joint Municipal Pension Fund and Another v Grobler and Others (183/06) [2007] ZASCA 49; [2007] 4 All SA 855 (SCA); 2007 (5) SA 629 (SCA) (30 March 2007)

Joint Municipal Pension Fund and Another v Grobler and Others (183/06) [2007] ZASCA 49; [2007] 4 All SA 855 (SCA); 2007 (5) SA 629 (SCA) (30 March 2007)

The majority held that the amendment to Munpen's rules was invalid as it conflicted with rule 49, which prohibits decreasing the value of an established benefit. The court interpreted 'established benefit' to mean the benefit that has accumulated and is calculable at the time of the amendment, regardless of whether the right to claim it has accrued. The Adjudicator lacked jurisdiction to consider the validity of the rule amendment, but the High Court was competent to review the trustees' decision under PAJA. The application for review was not time-barred, as the interests of justice justified entertaining the application given the delays in exhausting internal remedies. The monetary and...

Citation
[2007] ZASCA 49
Parties
Appellant: The Joint Municipal Pension Fund; Appellant: The Munpen Retirement Fund; Respondent: LJ Grobler; Respondent: The Pension Funds Adjudicator; Respondent: The Registrar of Pension Funds; Respondent: J Mahlangu NO; Respondent: C Müller NO
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
30 March 2007
Case Number
183/06
Procedural Posture
Civil Appeal / Appeal From the High Court, Pretoria
Outcome
Appeal dismissed with costs, subject to amendment of the High Court's order. The amendment to Munpen's rules is set aside. The Registrar is ordered to cancel registration of the amended rules. Costs awarded against the second and third respondents jointly and severally.
Judges
CT Howie, Nugent, Heher, Ponnan, Musi
Legal Topics
Pension Fund Rule Amendment, Established Benefit, Review of Adjudicator Decision, Jurisdiction of Adjudicator, Promotion of Administrative Justice Act
Banking and Finance Civil Procedure Pension Fund Rule Amendment Established Benefit Review of Adjudicator Decision Jurisdiction of Adjudicator Promotion of Administrative Justice Act

Case Brief

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Parties

The Joint Municipal Pension Fund

Appellant

The Munpen Retirement Fund

Appellant

LJ Grobler

Respondent

The Pension Funds Adjudicator

Respondent

The Registrar of Pension Funds

Respondent

J Mahlangu NO

Respondent

C Müller NO

Respondent

Procedural Posture

Civil Appeal / Appeal From the High Court, Pretoria

Legal Issues

  1. 1 Whether the amendment to Munpen's rules validly deprived Grobler of an 'established benefit'.
  2. 2 Whether the Pension Funds Adjudicator had jurisdiction to consider the validity of the rule amendment.
  3. 3 Whether the High Court had jurisdiction to review the amendment and the Adjudicator's decision.

Ratio Decidendi

The majority held that the amendment to Munpen's rules was invalid as it conflicted with rule 49, which prohibits decreasing the value of an established benefit. The court interpreted 'established benefit' to mean the benefit that has accumulated and is calculable at the time of the amendment, regardless of whether the right to claim it has accrued. The Adjudicator lacked jurisdiction to consider the validity of the rule amendment, but the High Court was competent to review the trustees' decision under PAJA. The application for review was not time-barred, as the interests of justice justified entertaining the application given the delays in exhausting internal remedies. The monetary and...

Court Disposition

Appeal dismissed with costs, subject to amendment of the High Court's order. The amendment to Munpen's rules is set aside. The Registrar is ordered to cancel registration of the amended rules. Costs awarded against the second and third respondents jointly and severally.

Orders

  • The decision of Munpen's trustees to amend the definition of pensionable service is reviewed and set aside.
  • The Registrar is ordered to cancel the registration of the amended rules of Munpen.