DEAR Editor,-
I write to express my confusion about the calculation of the once-off gratuity payments to be granted to non-returning councillors following the May 3, 2016 municipal elections.
In terms of the formula provided by Cooperative Governance in their circular number 30 of 2016, which was tabled at council meetings in July 2016, non-returning councillors would receive a once-off grant equivalent to their annual total remunerations, divided by 12 months, and multiplied by three months. This would apply in all cases where councillors completed their full term of office of five years and three months (the election held on August 3 was three months late).
When my term of office came to an end on August 3, I applied for a gratuity from Cogta and a pension from the Councillors Pension Fund. In both cases I was assisted by the municipality, who checked that my applications were correct and all required documents were enclosed before submitting them to Cogta and the Councillors Pension Fund.
Three months later I was paid out in full by the pension fund and after another month (in December 2016) Cogta deposited a modest amount (less than a single month’s pay) into my bank account. To this day I have received nothing in writing from Cogta.
I took this matter up with the municipality, who in turn took it up with Cogta. I was startled to be informed that I had used the ‘old formula’ in my calculations (which was in fact the only formula in existence in July 2016 when I made my application).
It appears that Cogta in the meantime unilaterally adopted a new formula on November 11, which means that the gratuity/grant is now only three months of the basic salary. This was done without the municipality or councillors being advised or consulted.
If one reads the Annual Government Circular (which determines councillors remuneration) the councillors’ total remuneration package is the total cost to a municipality of a basic salary component package which is 75 percent of the total remuneration package (25 percent has to be paid as a travelling allowance). If the councillor exercised his or her option to belong to a subsidised pension fund or a subsidised medical aid scheme, this is also part of a total cost to the municipality.
This presents some difficulties in calculating the value of the gratuity grant on an individual basis. Councillors themselves determine how much to contribute, on a personal basis to the councillors pension fund.
Some councillors do not set aside an amount for a housing allowance at all. Some councillors do not even belong to the Municipal Councillors Pension Fund, so a gratuity based on total annual remuneration seems more equitable.
When parliament voted an amount of R309.8-million in 2016 to pay non-returning councillors a once-off grant, the amount was based on the total annual remuneration of councillors which forms the basis of the formula spelled out in Circular 30 of 2016.
What has happened to the money?
D SNASHALL
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