OFFICIAL MEDIA STATEMENT: Municipal Employees Pension Fund (MEPF)

In light of recent events, we have noted that a small group of members are continuously circulating misleading and inaccurate information about the MEPF Rules and its alignment to the Pension Funds Act of 1956 (South Africa). This has unfortunately caused unnecessary panic among some of our members.

We urge all members to familiarise themselves with the official MEPF Rules found on our website mepf.co.za, which are fully aligned with the Pension Funds Act of 1956, and to engage directly with our dedicated Stakeholder Relations Team for clarity. We remind members that MEPF is a Hybrid Fund, comprising two categories—Defined Benefit and Defined Contribution—each with its own rules, benefits calculations, and responsibilities.

1. Addressing Misleading Comparisons

We have heard remarks suggesting that “we are the next VBS”. We regard such statements as baseless, far-fetched, and malicious, aimed at discrediting the Fund and our trusted Administrator, Akani Retirement Fund Administrators (Akani RFA).

Marketing Manager, Ms. Mathawe Matsapola was on SAFM on Thursday, 07 August 2025, to address these misinformed allegations, and we welcome the opportunity to re-engage with the station as suggested. MEPF and Akani RFA operate strictly within the legal framework of the Financial Sector Conduct Authority (FSCA) and is fully guided by the Pension Funds Act of 1956. We assure our members that these malicious attempts to cause confusion will not succeed. We wish to emphasize that members who have raised concerns, including those who called into the radio station, have been responded to directly by Ms. Matsapola, the Principal Executive Officer of the Fund- Mr. Gift Motsepe, and our Stakeholder Relations team. All have received extensive explanations on their enquiries.

Addressing Specific Allegations:

• Mr Itumeleng Mekoa of Ngaka Modiri Molema District Municipality: Claimed on radio that he was transferred from GEPF and contributed for 36 years, with his funds not reflecting on his benefit statements. This information is incorrect. Mr. Mekoa joined MEPF in 2003 and has been contributing for 22 years, not 36. No funds were transferred from GEPF; he started afresh with MEPF. On 26 May 2025, he contacted Ms. Matsapola regarding general unresolved issues. Ms. Matsapola requested specific member details to investigate, but to date, this information has not been provided. We cannot address general allegations without specific information.
• Sello Mokganya of Bushbuckridge Local Municipality: On 10 July 2025, he contacted Ms. Matsapola and alleged that a member who joined MEPF with R4.5 million from GEPF only received R500 000 on retirement. Ms. Matsapola requested the member’s details to investigate, as such a situation is highly improbable. No information was provided, yet these claims continue to be made publicly. We wish to highlight that Mr. Mokganya engages Ms. Matsapola regularly, forwarding other members’ enquiries, which are always attended to. However, the specific case regarding the alleged R4,5 million has never been substantiated with details.
• Sibusiso Sitiba of City of Ekurhuleni: Raised concerns about discrepancies in his benefit statements and fund growth. Ms. Matsapola provided a detailed explanation responding to his email and also invited him to the office for a personal walkthrough of his statements. Mr. Sitiba declined, requesting written communication, which was duly provided on 15 October 2024. We are aware of claims that this invitation was for inappropriate reasons, which is categorically untrue.
• Kwena Mokoele of Capricorn District Municipality: Engaged extensively with Ms. Matsapola, including over weekends on a number of concerns and portal issues. Ms. Matsapola provided clarity on concerns raised. Mr. Mokoele requested for the Principal Executive Officer to still respond to the emails he sent through to Ms. Matsapola for his attention. Formal responses by Principal Executive Officer were given to Mr. Mokoele, also confirming explanations given to him by Ms. Matsapola in May 2025. It is surprising to hear claims on radio that he did not receive responses to his enquiries.
• Success Nkuna of Bushbuckridge Local Municipality: His enquiries regarding his benefit statements were investigated and addressed in 2023 by our Stakeholder Relations team.

Our commitment to our beneficiaries—including pensioners, widows, widowers, and child pensioners—remains unwavering. Many of you personally know individuals in your own communities who have benefitted from the Fund. We encourage you to speak with them and learn about their experiences. We made a commitment to them, just like we have made a commitment to you.

2. Understanding Your Fund Category

As explained in our regular Member Education Sessions, it is important to know which category you fall under:

Defined Benefit (DB)

• Applies to members who joined the municipality between 1970 –late 2013.
• Designed to take care of you even if you outlive your savings.
• The employer bears the investment risk.
• Retirement Benefits Calculation Formula:
  • Gratuity (Lump Sum) = (Average of last 3 years’ Annual Salary) × (Years of Pensionable Service) × (Age Factors in MEPF Rule Book) ÷ 100
  • Monthly Pension for Life = (Average of last 3 years’ Annual Salary) × (Years of Pensionable Service) × (Age Factors in MEPF Rule Book) ÷ 1200

Defined Contribution (DC)

• Applies to members who joined the municipality from late 2013 to date.
• Unlike the DB category, what you put in is what you get out.
• The member bears the investment risk.
• Members Fund Credit: Minimum 7.5% (employee) + 18% (employer) – admin & risk costs + investment returns.
• Upon retirement: 1/3 lump sum + 2/3 used to purchase an annuity as required by law.

We encourage members to engage directly with a Stakeholder Relations Officer for personalised benefit illustrations.

3. Funeral Benefit Clarification

We are aware of misunderstandings about the Funeral Benefit, with some believing claims are paid from their pension savings. This is not correct.

The Funeral Benefit is free to all MEPF members and ensures loved ones receive a dignified send-off. It is underwritten by our trusted partner Old Mutual. All claims are assessed by Old Mutual, which then approves or rejects them based on policy rules.

Common reasons for rejected claims:

1. Not listing all eligible dependants on the Funeral Cover Form. Only listed individuals are covered.
2. Differences in surnames without proof of relationship, which is required to prevent fraud.
3. Two or more members claiming for the same person. Only one claim can be paid   for one life assured.
4. Claims for other extended family members who are not biological parents and parents-in-law and children over the age of 21.

We extend our condolences to any member whose claim was previously rejected and sincerely apologise for any distress caused. We urge members to engage with our Stakeholder Relations Officers to ensure documentation is correct for successful claims.

4. Our Commitment to Members

The MEPF and Akani RFA remain steadfast in our mission: putting our members first.
We continue to urge members to:

• Attend Member Education Sessions in large numbers. Knowledge is the key to making informed decisions.
• Seek direct information from the Fund instead of following unverified trends.
• Protect your financial future and that of your children by staying informed.

This is your financial future. This is your family’s security.

Our Stakeholder Relations Officers are always ready to assist:

1. Lebo Molemane – 066 020 8535 (North-West, Mpumalanga, Gauteng)
2. Gudani Mufhadi – 072 352 7144 (Free State, Limpopo, Mpumalanga, North-West)
3. Thulani Mthombeni – 082 585 5931 (Gauteng, KZN, Northern Cape, Eastern Cape)
4. Wisani Shiviti – 072 352 6894 (Limpopo, Mpumalanga, Gauteng)