LADYBRAND, FREE STATE — Sixty-five-year-old Roster Rasutha is fighting for her financial survival after the Mantsopa Municipality in the Free State allegedly failed to release her pension funds following 39 years of dedicated service. Rasutha is among several municipal workers who claim their employer consistently deducted retirement contributions from their salaries but never paid the funds over to the respective pension providers, leaving them facing severe financial hardship in their retirement years.
Rasutha, who worked an additional five years specifically to secure a more stable pension, describes what should have been her golden years as a slow-moving nightmare. “I honestly don’t know how to feel because we don’t have anything in this house,” she said, noting the severe negative impact on her family. “I was hoping to receive my pension so that I can feed my kids, as we do not even have food, and I’ve waited months for my pension.”
The financial stakes are significant. The municipality reportedly owes over R4.8 million in outstanding retirement fund contributions, a sum that includes more than R84,000 in accrued interest on late payments.
The crisis extends beyond Rasutha. Fellow municipal workers have expressed deep anxiety about their post-retirement survival. One employee, who has worked at the municipality for 37 years since 1988, stated that their pension contributions were never made, leaving them questioning how they will survive. The lapsed benefits have already had devastating real-world consequences, with one colleague recently unable to afford funeral costs following a death in the family.
“I am deeply hurt. I am almost ready to retire because I’m over 60 years. Am I going home to be provided for by my children when I have money? It should not be like that. I feel used by the municipality,” another worker stated, adding that while higher officials worked from home during the COVID-19 pandemic, rank-and-file staff worked tirelessly and are now demanding their rightful packages.
A spokesperson for the municipal workers union confirmed that the union is actively exploring legal avenues to defend its members’ rights. The union has officially opened cases with the Hawks against the municipality and its senior management, alleging they have made themselves guilty by contravening the Pension Funds Act. The spokesperson emphasized that the matter must be resolved expeditiously and demanded that all deferred salaries owed to workers be paid directly into the pension fund.
Providing legal context, a legal expert noted that the municipality is legally obliged to pay the pension funds since the deductions were already made from employees’ salaries. Failure to do so could result in serious criminal charges, including fraud. The expert advised affected employees to first check their statements from the insurance company holding the pension funds to verify the last reflected amount. If the non-payment is a direct result of the employer withholding deducted funds, employees should open a criminal case against the employer and report the matter to the Pension Funds Adjudicator (OPFA).
In response to the growing crisis, a spokesperson for the Free State Department of Cooperative Governance confirmed that the Mantsopa Local Municipality will resolve the pension fund issue after receiving its equitable share from the national treasury. The department plans to engage the municipality’s accounting officer to demand strict accountability.
The spokesperson acknowledged that the municipality currently holds approximately R4.8 million in pension funds, which is slated to be settled once the municipality receives its portion of national grants next week. The department stressed that this situation was not supposed to happen under adopted action plans, and a full accounting of how the administrative lapse occurred will be conducted.
Furthermore, the department confirmed that both Kopanong and Mohokare municipalities, which previously faced similar pension fund challenges, have successfully made special payment arrangements with their respective pension funds to rectify their arrears.
The Mantsopa Local Municipality was not available for comment at the time of publication.
