Latest news with #PensionFundsAct
TimesLIVE
6 days ago
- Business
- TimesLIVE
Sisters lose challenge to their mom over late sibling's estate
The Johannesburg high court has dismissed an application by two unemployed sisters disputing a decision to allocate 100% of their late sister's death benefits to their elderly mother. Siblings Thandazile Mbonambi and Thobekile Ngubane approached the court to seek a review and set aside the eJoburg Retirement Fund's decision to allocate death benefits of Hlengiwe Mbonambi to their mother Ntombi Mbonambi. The deceased had nominated her mother as the sole beneficiary for the death benefit from the fund amounting to just more than R4m. Thandazile and Thobekile claimed they deserved an equal share as they were also depending on the deceased for financial support — an issue they could not produce enough evidence for except a bank statement showing R300 the deceased once sent to one of them. Their brother did not claim dependency but supported the distribution of the death benefits to their mother. When a member of a retirement fund dies before reaching retirement age, the lump sum benefit which becomes payable must be paid to the member's dependants and/or nominees. The Pension Funds Act regulates the payment of these death benefits. The primary objective is to ensure those people who were dependent on the deceased member are not left destitute after his/her death, irrespective of whether the deceased was legally required to maintain them. In this matter, the court heard the appointed fund administrator, Momentum, attended to the investigation on behalf of the fund into possible dependants of the deceased and obtained affidavits from them.
The Citizen
04-07-2025
- Business
- The Citizen
Thousands denied pensions as employers fail to pay
R5.2bn in pension debt owed by employers, mainly municipalities and security firms, leaves thousands of workers in limbo. A large number of municipalities and private employers who did not pay employees' contributions over to pension funds may face investigations. Their non-payments have tipped the new two-pot retirement system into turmoil. The employers are facing imminent investigation by the department of employment and labour, which is planning to flood them with labour inspectors to check their compliance status. Long list of companies, municipalities that violated pension fund They will also be sanctioned by the Financial Sector Conduct Authority (FSCA) which has a long list of private companies and municipalities that violated the pension fund rules and the law. An FSCA report showed municipalities and firms, mainly in the security and cleaning sectors, owe their employees approximately R5.2 billion in outstanding pension fund contributions impacting 31 000 people, with some cases dating back to the 2000s. Of the outstanding contributions, some R1.4 billion is owed by municipalities, affecting pension fund members' savings. ALSO READ: Industry leaders launch market surveillance code as Steinhoff fallout lingers The FSCA identified around 7 770 noncompliant employers, with 2 330 of them being publicly listed for violating Section 13A of the Pension Funds Act. Many employees, who were hoping to claim from their pension funds under the two-pot scheme, are crying foul after hitting a brick wall when they attempted to claim the 30% due to them under the two-pot system, which came into effect last year. The system has two pots – one is for savings and constitutes one third which goes into a savings pot and is accessible for withdrawal since September last year. The other two-thirds goes into the retirement pot to be kept in the fund until the pensioner's retirement age. Employees found their monies had been withheld The distraught employees found that their monies had been withheld by employers, particularly municipalities and the security and cleaning sector, that were all blacklisted by the FSCA. This means the contributors cannot claim the saving portion of their contributions. The Congress of SA Trade Unions (Cosatu) has taken up the matter on behalf of the affected workers, who inundated their various unions with complaints about how their employers had inconvenienced and prejudiced them due to nonpayment of their pension fund contributions. ALSO READ: Missing broker, missing money Cosatu parliamentary coordinator Matthew Parks said Cosatu has established a task force with the FSCA, National Treasury and the Association for Savings and Investment South Africa (Asisa) at the National Economic Development and Labour Council to deal with this crisis. Asisa represents the collective interests of asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life insurance companies. Parks said: 'It has the potential to get out of control. We're engaging the different sectors. Engagements have taken place with the SA Local Government Association and more are planned.' Potential to get out of control The department agreed to issue a ministerial directive to labour inspectors to check pension fund compliance by employers. The department also increased the number of labour inspectors from 2 000 by 10 000 this year and 10 000 to be hired next year. The FSCA is working with the National Prosecuting Authority to pursue criminal sanctions against offenders. NOW READ: FSCA juggling high-profile cases with limited resources
IOL News
14-06-2025
- Business
- IOL News
Adjudicator criticises pension fund for ignoring complaints
The South African Local Authorities Pension Fund faces scrutiny after the Office of the Pension Funds Adjudicator reported it to the FSCA for failing to respond to multiple complaints, raising concerns over its compliance and fiduciary duties. Image: Pexels The Office of the Pension Funds Adjudicator (OPFA) has come down hard on the South African Local Authorities Pension Fund for ignoring repeated requests for information, in what it describes as serious non-compliance with regulatory obligations. Adjudicator Muvhango Lukhaimane reported the fund to the Financial Services Conduct Authority (FSCA) after it failed to respond to multiple enquiries from her office in the course of investigating a complaint. 'There were several complaints against the fund,' Lukhaimane says. 'And the lack of response from the fund reflects a disregard for the Pension Funds Act, its rules, and the best interests of members.' The complaint in question was brought by a former South African Police Service employee who believed his withdrawal benefit had been improperly calculated. He asked the OPFA to determine whether his employer had consistently paid overall contributions to the fund, a factor that would directly affect the value of his benefit. Despite being called upon to respond, the fund failed to file any response to the OPFA's request. As a result, the adjudicator proceeded to determine the matter without their input. Lukhaimane described the fund's behaviour as 'intolerable,' saying it suggested multiple contraventions of the law and showed poor standards of fiduciary duty. 'The fund's unreasonable delay in responding to the complaint could not be entertained as it prejudiced the complainant,' she added. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Noting the volume of cases her office handles, Lukhaimane stressed the importance of timely cooperation. 'It is, therefore, incumbent upon pension funds and administrators to ensure that enquiries from the Adjudicator are properly and adequately responded to. This is especially so since boards of funds and Principal Officers are required to be fit and proper.' She says: 'The failure to respond to enquiries and to timeously response to complaints by such persons is a failure to uphold their fiduciary responsibilities. It impedes the Adjudicator's ability to deliver on its mandate, and if allowed to continue, will render the Adjudicator ineffective. It also constitutes a barrier to the complainant being able to have their complaint properly resolved.' Lukhaimane also raised concerns about systemic issues within the fund's administration. 'When the administrative wheels of a fund come off, it starts with the fund's failure to respond to complaints that require data from its administration system relating to payment of contributions.' She named the fund's administrator, Fairsure Administration (Pty) Ltd, saying: 'All indications are that there is an issue with the receipt and allocation of contributions. It is, therefore, imperative that the FSCA acts with haste to avoid further prejudice to members.' In her ruling, Lukhaimane ordered the fund to reconcile all contributions and advise the employer of any shortfalls. The fund must also furnish the complainant with a full breakdown of both his contributions and withdrawal benefits. In addition, the employer has been ordered to pay any outstanding contributions to the fund, which in turn must credit the complainant for any shortfall. PERSONAL FINANCE
The Citizen
13-06-2025
- Business
- The Citizen
Adjudicator reports Local Authorities Pension Fund for misconduct
The Pension Funds Adjudicator is holding the pension fund for local authorities accountable for not paying over pension contributions. The Pension Funds Adjudicator has severely criticised the South African Local Authorities Pension Fund for failing to respond to repeated requests for information and has reported the fund's misconduct to the Financial Services Conduct Authority (FSCA). Muvhango Lukhaimane, the Pension Funds Adjudicator, says her office has received several complaints against the fund, and she believes the fund's lack of response reflects a disregard for the Pension Funds Act, its rules, and the best interests of its members. She has reported the fund to FSCA to act against its officials. ALSO READ: What happens to your pension fund when you pass away? Complaint to Pension Fund Adjudicator about withdrawal benefit One of the complaints she received was from someone employed by the South African Police Service, who was unhappy with the amount received as his withdrawal benefit when he stopped working. He requested that the Office of the Adjudicator investigate whether the employer had failed to make all required contributions to the fund on his behalf, as this would affect the amount he could withdraw. When the office of the Adjudicator contacted the fund for a response to the complaint, the fund failed to file a response, forcing the Adjudicator to proceed with determining the matter. Lukhaimane said in her determination that the fund's non-compliance is 'intolerable' as it points to several contraventions of the Pension Funds Act and also reflects poor conduct of duty. 'The fund's unreasonable delay in responding to the complaint could not be entertained as it prejudiced the complainant. My office deals with high volumes of complaints, which need to be disposed of expeditiously to properly fulfil its mandate. 'Therefore, it is mandatory for pension funds and administrators to ensure that they respond properly and adequately to enquiries from my office, especially since boards of funds and principal officers are required to be fit and proper.' ALSO READ: Councils take pension billions Failure to respond is failure to uphold fiduciary responsibilities Lukhaimane says the fund's failure to respond to enquiries and respond timeously to complaints is a failure to uphold the officials' fiduciary responsibilities. 'It inhibits my office's ability to deliver on its mandate and, if it is allowed to continue, will render the Adjudicator's office ineffective. 'It also constitutes a barrier to complainants' being able to have their complaints properly resolved,' said Lukhaimane. She said that when the administrative wheels of a fund come off, it starts with the fund's failure to respond to complaints that require data from its administration system relating to payment of contributions. 'The administrator in this instance is Fairsure Administration (Pty) Ltd, and all indications are that there is an issue with the receipt and allocation of contributions. It is therefore imperative that the FSCA acts with haste to avoid further prejudice to members.' ALSO READ: Two-pot retirement system: Nothing for thousands of pension fund members Pension Funds Adjudicator's acts on non-compliance Lukhaimane ordered the fund in her determination to reconcile the contributions received and advise the employer of any outstanding contributions. In addition, the fund was ordered to provide the complainant with a breakdown of his contributions and a breakdown of his withdrawal benefit. She also ordered his employer to pay any arrears to the fund. The fund was ordered to pay the complainant any outstanding fund credit due to the arrears for contributions. The Office of the Pension Funds Adjudicator (OPFA) is a statutory body established to resolve disputes in a procedurally fair, economical and expeditious manner. The adjudicator's office investigates and determines complaints of abuse of power, maladministration, disputes of fact or law and employer dereliction of duty regarding pension funds. If you have a question or a complaint, visit the Adjudicators website at call it on 012 346 1738 or email Enquiries@ NOW READ: Pension Fund complaints surge amid trust and accountability concerns
The Citizen
06-06-2025
- Business
- The Citizen
Limpopo DA lays charges over GNT pension crisis
LIMPOPO – On Monday, May 26, the Democratic Alliance (DA) in Limpopo laid criminal charges against the CEO of Great North Transport (GNT) and the Limpopo Economic Development Agency (LEDA), the sole shareholder of GNT. The charges, filed at the Polokwane Police Station, relate to the non-payment of employee pension fund and medical aid contributions. Jacques Smalle, DA Limpopo provincial spokesperson for economic development, environment, and tourism, said LEDA, as the sole shareholder, holds both statutory and fiduciary responsibilities for GNT's financial management. 'The scale of the crisis became clear during an urgent sitting of the Limpopo Portfolio Committee on Economic Development, Environment and Tourism on Friday, May 23,' Smalle explained. 'This meeting, which followed the DA's repeated calls for GNT and LEDA to account, revealed unpaid contributions to three pension schemes totalling R6.78 million and affecting 945 employees. In some cases, employee memberships have already been suspended. If at least R1 million is not paid by the end of May, all memberships could be suspended, potentially resulting in permanent loss of pension benefits.' Smalle attributed the crisis to 'years of corruption, mismanagement, and lack of accountability' at GNT. He added that the company's failure to implement a viable turnaround strategy further deepened its financial troubles. 'The situation at GNT is dire; it has become an unsustainable entity,' Smalle said. 'The charges laid include theft, fraud, and violations of both the Pension Funds Act and the Medical Schemes Act, all of which are criminal offences.' In response to the allegations, Mthunzi Dlamini from LEDA acknowledged the outstanding contributions and said efforts were underway to settle the payments within the week. 'GNT has faced ongoing financial constraints in meeting its obligations,' Dlamini said. 'However, strategic steps have recently been taken, including the procurement of new buses to replace the ageing fleet and the launch of a bus lease programme aimed at increasing operational capacity.' LEDA CEO Thakhani Makhuvha said the LEDA is committed to resolving the issue. 'As the shareholder, LEDA has decided to step in and ensure that all outstanding pension and medical contributions are brought up to date,' Makhuvha said. 'We recognise the severity of the situation and apologise to affected employees. This is deeply regrettable.' At Caxton, we employ humans to generate daily fresh news, not AI intervention. Happy reading!
