Tshwane metro to appeal high court order over medical aid contributions

The Tshwane metro has been accused of ignoring a Pretoria High Court decision ordering it to pay post-retirement medical aid contributions to its employees, Pretoria East Rekord reports.

The Independent Municipal and Allied Trade Union (IMATU) last week expressed concern that the metro was refusing to pay contributions, despite the court order.

It labelled the refusal “a direct attack on the well-being of pensioners and the [elderly]”.

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In December of last year, the court confirmed the metro’s contractual obligation to continue contributing towards the monthly premiums of its pensioner members after retirement.

IMATU Tshwane regional manager Rudy de Bruyn said: “To date, the metro has refused to comply and we received notice last week that they have filed an application for leave to appeal the aforementioned judgment.

“Despite slim margins for success, the metro is determined to delay the process and negate the contractual rights of pensioners.”

De Bruyn said many of those affected dedicated years of their lives to the service of the council “only to be sidelined and denied in retirement”.

The court case came after IMATU became aware that pensioners were no longer receiving post-retirement medical aid contributions.

Prior to 2003, local government employees were expected to select an accredited medical aid scheme and remain with this service provider for the duration of their employment.

The South African local government bargaining council medical aid collective agreement made it possible for all local government employees to migrate, during an annual window period, between accredited medical aid schemes.

While the onus fell on the employer (municipality) to inform both employees and pensioners of this “choice of movement on an annual basis before 1 January”, the Tshwane metro failed to inform employees belonging to the Pretmed scheme that resignation and movement to other accredited schemes would also terminate any post-retirement medical aid subsidy from the employer.

Employees therefore freely moved between accredited medical aid schemes, unaware of any potential prejudice or disadvantage, said De Bruyn.

“The high court found that the contractual entitlement to a post-retirement medical aid subsidy for former employees was never contingent upon employees remaining members of Pretmed. The metro was then ordered to continue to contribute medical aid premiums.”

The metro confirmed it had applied for leave to appeal.

Metro spokesperson Lindela Mashigo said: “The city is not prepared to discuss the merit of the matter and any related facts as the process of appeal is still ongoing.”

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