Ismail Momoniat calls for law on unclaimed pensions
Concern over estimates by FSB that at least R40bn remains due to former workers
Legislation is needed to compel pension fund administrators to increase efforts to trace beneficiaries and pay out billions of rand in unclaimed funds, Treasury deputy director-general Ismail Momoniat says. The Financial Services Board (FSB) estimates more than R40bn in pension funds remains unclaimed. Health Minister Aaron Motsoaledi recently said billions of rand due to former mine workers remained unclaimed. Chamber of Mines CEO Roger Baxter put the figure at R3bn for the mining sector. The pension money, which is due to former mine workers from SA and neighbouring countries, is not controlled by the government. The unclaimed benefits, which include cash accumulated towards retirement and deaths, are held in investment vehicles and overseen by trustees, who use tracing companies to find beneficiaries, albeit sometimes reluctantly. Momoniat, an FSB board member, said on Wednesday the concern about unclaimed funds was a regulatory issue. A law was needed to provide guidelines, he s...
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