retirement funds
Employers’ epic fail on pensions
South Africa’s pensions funds administrator and oversight body are saddled with a growing problem: errant employers — municipalities in particular — that deduct pension contributions from their staff and don’t pay them over to the relevant fund administrators
29 June 2023 - 05:00
It’s a situation that’s become common in South Africa: employers who fail to pay over the pension contributions of their staff to fund administrators. And remedying the problem is proving to be an uphill battle for both the pension funds adjudicator and the Financial Sector Conduct Authority (FSCA).
Under section 13A of the Pension Funds Act, pension contributions are supposed to land in members’ retirement funds on the seventh day of the month after they fall due. Noncompliance with this act may attract a fine of up to R10m or 10 years’ imprisonment...
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