Kwacha Pension Fund and Another v Pension Fund Adjudicator and Another (76484/2013) [2014] ZAGPPHC 481 (23 May 2014)

Kwacha Pension Fund and Another v Pension Fund Adjudicator and Another (76484/2013) [2014] ZAGPPHC 481 (23 May 2014)

The court found that the deduction of R 383 808.86 from the 2nd Respondent's pension benefit was lawful under section 37D of the Pension Funds Act. The 2nd Respondent had admitted liability in writing for the costs incurred by the employer in recovering its asset, and the amount was fixed by a court order. The actions of the 2nd Respondent constituted misconduct, and the deduction was therefore permissible. The Pension Fund Adjudicator's determination ordering reimbursement was set aside, and the 2nd Respondent's complaint was dismissed.

Citation
[2014] ZAGPPHC 481
Parties
Applicant: Kwacha Pension Fund; Applicant: Sizwe Medical Fund; Respondent: Pension Fund Adjudicator; Respondent: Nompumelelo Faith Gabela
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
23 May 2014
Case Number
76484/2013
Procedural Posture
Review Application / Judgment
Outcome
Application granted. The deduction from the 2nd Respondent's pension benefit was lawful, the Pension Fund Adjudicator's determination was set aside, and the 2nd Respondent's complaint was dismissed.
Judges
De Vries
Legal Topics
Pension Funds Act Section 37d, Lawful Deduction From Pension, Review of Adjudicator Determination
Civil Procedure Land and Property Pension Funds Act Section 37d Lawful Deduction From Pension Review of Adjudicator Determination

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Parties

Kwacha Pension Fund

Applicant

Sizwe Medical Fund

Applicant

Pension Fund Adjudicator

Respondent

Nompumelelo Faith Gabela

Respondent

Procedural Posture

Review Application / Judgment

Legal Issues

  1. 1 Whether the deduction of R 383 808.86 from the 2nd Respondent's pension benefit was lawful under section 37D of the Pension Funds Act.
  2. 2 Whether the Pension Fund Adjudicator's determination ordering reimbursement to the 2nd Respondent should be set aside.
  3. 3 Whether the 2nd Respondent's complaint regarding non-payment of her pension benefit should be dismissed.

Ratio Decidendi

The court found that the deduction of R 383 808.86 from the 2nd Respondent's pension benefit was lawful under section 37D of the Pension Funds Act. The 2nd Respondent had admitted liability in writing for the costs incurred by the employer in recovering its asset, and the amount was fixed by a court order. The actions of the 2nd Respondent constituted misconduct, and the deduction was therefore permissible. The Pension Fund Adjudicator's determination ordering reimbursement was set aside, and the 2nd Respondent's complaint was dismissed.

Court Disposition

Application granted. The deduction from the 2nd Respondent's pension benefit was lawful, the Pension Fund Adjudicator's determination was set aside, and the 2nd Respondent's complaint was dismissed.

Orders

  • The deduction of R 383 808.86 from the 2nd Respondent’s pension benefit was lawfully made.
  • The Pension Fund Adjudicator’s determination is set aside insofar as it directs the 1st Applicant to reimburse the 2nd Respondent.