Municipal Employees Pension Fund and Another v Mongwaketse

Ms Dineo Mongwaketse was employed by a district municipality on a fixed-term contract and was purportedly admitted as a member of the Municipal Employees Pension Fund (MEPF). Under the Fund’s rules, employees appointed for a limited period were ineligible for membership. Contributions amounting to 29.5% of her salary were deducted and paid to the MEPF, although in substance all contributions came from her remuneration. After discovering that she was ineligible, she sought a refund of all contributions. The Pension Fund Adjudicator ordered the MEPF to repay all contributions, less amounts already paid. The MEPF challenged the Adjudicator’s jurisdiction and the restitutionary relief granted, unsuccessfully in the High Court and Supreme Court of Appeal, and then appealed to the Constitutional Court.

Leave to appeal was granted, but the appeal was dismissed. The Adjudicator’s determination ordering repayment of all contributions (less amounts already paid) stood.

The case authoritatively clarifies the jurisdiction of the Pension Fund Adjudicator, confirming that individuals wrongly admitted to pension fund membership may lodge complaints under the Pension Funds Act. It affirms that pension funds act ultra vires when admitting ineligible members and that restitution based on unjustified enrichment is competent in such circumstances. The judgment strengthens access to affordable remedies in pension disputes and avoids forcing claimants into costly High Court litigation.