Constitutional Court Ends Four-Year Municipal Pension Dispute.

The Constitutional Court has brought an end to a four-year legal battle over municipal retirement funds, leaving the 2021 Retirement Fund Collective Agreement declared unlawful and set aside in its entirety.

On 29 September 2026, the court refused an application for leave to appeal brought by the South African Local Government Bargaining Council and its parties against the Municipal Workers Retirement Fund (MWRF).

The MWRF first challenged the agreement in 2022, securing a High Court victory in February 2023. The Supreme Court of Appeal upheld the fund’s position in August 2025.

The dispute centred on the legal responsibilities of pension fund trustees and protections provided under the Pension Funds Act.

The Supreme Court of Appeal ruled that collective agreements could not remove these protections. It also described exposing retirees who had not been consulted to the risk of losing retirement benefits as “reckless”.

In a statement issued on 13 October, the MWRF welcomed the Constitutional Court’s decision, confirming that all avenues of appeal had been exhausted.

The fund reassured members and pensioners that its rules remain in force, contributions will continue as normal and no action is required.

The ruling reinforces the legal protections governing municipal retirement funds across South Africa, including those serving municipal employees in the Eastern Cape.