Msimango v Ekurhuleni Metropolitan Municipality and Another (1224/14) [2015] ZAGPPHC 559 (7 August 2015)

Msimango v Ekurhuleni Metropolitan Municipality and Another (1224/14) [2015] ZAGPPHC 559 (7 August 2015)

The court held that section 37D of the Pension Funds Act does not require that proof of liability or a judgment be available at the time of termination of employment. The Fund has a discretion to withhold payment of pension benefits pending the determination or acknowledgment of liability. In this case, the respondents have commenced civil proceedings to determine the applicant's liability, and the delay is not unreasonable or solely attributable to awaiting the outcome of criminal proceedings. The prejudice to the applicant is mitigated by the fact that the matter is being prosecuted, and it is not unjust for payment of benefits to be delayed pending the outcome of the civil proceedings....

Citation
[2015] ZAGPPHC 559
Parties
Applicant: Daphney Patricia Msimango; Respondent: Ekurhuleni Metropolitan Municipality; Respondent: Municipal Employees Pension Fund
Court
North Gauteng High Court, Pretoria
Jurisdiction
South Africa
Judgment Date
7 August 2015
Case Number
1224/14
Procedural Posture
Civil Application / Final Judgment
Outcome
Application dismissed; each party to pay its own costs.
Judges
N V Khumalo
Legal Topics
Pension Fund Deductions, Section 37d Pension Funds Act, Withholding of Benefits, Dismissal for Misconduct
Labour Law Civil Procedure Pension Fund Deductions Section 37d Pension Funds Act Withholding of Benefits Dismissal for Misconduct

Case Brief

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Parties

Daphney Patricia Msimango

Applicant

Ekurhuleni Metropolitan Municipality

Respondent

Municipal Employees Pension Fund

Respondent

Procedural Posture

Civil Application / Final Judgment

Legal Issues

  1. 1 Whether the applicant is entitled to immediate payment of her pension benefits following dismissal for misconduct.
  2. 2 Whether the respondents are lawfully entitled to withhold pension benefits pending determination of civil and criminal liability.
  3. 3 Whether section 37D of the Pension Funds Act permits withholding of benefits absent written admission of liability or judgment.

Ratio Decidendi

The court held that section 37D of the Pension Funds Act does not require that proof of liability or a judgment be available at the time of termination of employment. The Fund has a discretion to withhold payment of pension benefits pending the determination or acknowledgment of liability. In this case, the respondents have commenced civil proceedings to determine the applicant's liability, and the delay is not unreasonable or solely attributable to awaiting the outcome of criminal proceedings. The prejudice to the applicant is mitigated by the fact that the matter is being prosecuted, and it is not unjust for payment of benefits to be delayed pending the outcome of the civil proceedings....

Court Disposition

Application dismissed; each party to pay its own costs.

Orders

  • The application is dismissed.
  • Each party is to pay its own costs.