GRAAFF-REINET NEWS - The hundreds of permanent employees of the Dr Beyers Naudé Local Municipality (DBNLM) have had no money paid into their pension funds since the end of June.
For many employees, a funeral policy, disability benefits and other risks policies are built into the pension fund, depending on the options chosen. It is unclear whether the non-payment of the policies for three months means that benefits are suspended, but this could be catastrophic.
One frustrated councillor contacted CRF pension fund, and was told that he "could" lose benefits unless the policy is paid up. The amount deducted from employees is approximately matched by the employer.
Despite the pension fund contribution being deducted from employees' salaries, nothing has been paid over to the pension fund for July, August or September.
"This is tantamount to theft," said an angry Cllr Eldrige Ruiters. "Money is deducted for this security for our families every month, and DBNLM is opening itself up for huge risks and possible legal actions if the worst should happen," he continued.
"The well-being of hundreds of families is at stake here."
No comment was received from the municipality by the time of going to press.
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