top of page
Search

Emfuleni employees to lose benefits due to non-payment

VANDERBIJLPARK - A leaked document from Municipal Gratuity Fund (MGF Wealth) written to Emfuleni Local Municipality warns about loss of cover if non-payment persists. The Fund’s rules determine that if members' contributions are not paid for three consecutive months or four months in a financial year the members will forfeit their risk cover being death, disability and funeral cover. This rule will be applicable on the members of Emfuleni Local Municipality in the event that contributions are not paid. In the letter it is stated, according to the Pension Funds Act, contributions deducted from members’ remuneration must be paid over to the Fund's bank account and interest will be calculated on the late payment of contributions. It is also of importance to note that such non-payments are regarded as a criminal offense and parties guilty of such an offense are liable on conviction to a fine not exceeding R10 million or to imprisonment for a period not exceeding 10 years, or to both. This is a legislative requirement and cannot be waived by the Board of the Fund. Emfuleni Local Municipality will be legally required to pay late payment interest. PHOTO: (Supplied)


13 views0 comments
bottom of page