Advertise Here
Icon

Directory

IconAssociations and Institutes
IconBBBEE Consulting and Verification Agencies
IconBenefit Administrators & Investment Managers
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconEmployee Benefits Consultants
IconFinancial Planners
IconIndependent Principal Officer
IconIndependent Trustees
IconOmbud
IconPension Fund Trustee Liability Insurance
IconPension Fund Trustee Training
IconPension Funds Adjudicator
IconPublications
IconRegulatory Authorities
IconRetirement Advice
IconRetirement Funds registered by the FSB
IconRetirement Products
IconSocial Grants (Government)
IconTrust Establishment & Management
IconWellness Programs
Advertise Here
  Subscribe To »

STATUTORY MANAGEMENT OF SECURITY SECTOR FUND FAILS TO IMPROVE EMPLOYER COMPLIANCE

Published

2021

Tue

16

Mar

A pension fund has been requested by the Pension Funds Adjudicator to notify some of its members of the failure of their employer to pay contributions on their behalf and to report the non-compliance with the Act to the National Prosecuting Authority.

 

Muvhango Lukhaimane, the PFA, said regulation 33(5) of the Pension Funds Act authorised the Private Security Sector Provident Fund (first respondent) to lay a criminal complaint against defaulting participating employers.

 

An employee complained to the PFA about the failure of his employer, Huntrex 116 (Pty) Ltd (second respondent), to pay all provident fund contributions on his behalf to the first respondent.

 

“The said regulation stipulates that if any failure to transmit contributions continues for 90 days, the monitoring person shall report the matter to the National Prosecuting Authority.

 

“It does not appear that the first respondent laid a criminal complaint against the second respondent for non-compliance with the provisions of section 13A and Regulation 33(1) of the Act to the NPA.

 

“Thus, the first respondent must notify its members of the failure of the second respondent to pay contributions on behalf of its employees and report it for non-compliance with the provisions of section 13A and Regulation 33(1) of the Act to the NPA,” Ms Lukhaimane ruled.

 

Ms Lukhaimane further indicated that, even under statutory management, the first respondent continues to fail to take action against defaulting employers and to discharge its obligations conferred in terms of the Act.

 

The complainant who has been employed with the second respondent from 1 March 2018 submitted he is dissatisfied that the employer deducts monthly provident fund contributions from his salary and fails to consistently remit same to the first respondent.

 

The first respondent submitted that it commenced receiving provident fund contributions on behalf of the complainant from 31 March 2018 and the last contribution on his behalf were received on 31 January 2019.

The second respondent was granted an opportunity to resolve the complaint and a further opportunity to comment on the allegations made against it. However, no response was received from it.

 

In her determination, Ms Lukhaimane said the second respondent owes provident fund contributions on behalf of the complainant for the period February 2019 to date. Thus, the second respondent failed to comply with rules 4.1.1 and 4.1.2 of the first respondent’s rules and section 13A of the Act.

 

She ruled that the complainant must be placed in the position he would have been in had the second respondent paid all the contributions due on his behalf to the first respondent.

 

The second respondent was ordered to pay the first respondent the complainant’s arrear contributions, plus late payment interest.

 

 
Source: The Office of the Pension Funds Adjudicator (OPFA)
 
« Back to previous page Print this page » |
 

Breaking News »

First edition of the Ombudsman’s Briefcase for 2021

In our first edition of the Ombudsman’s Briefcase for 2021 we take this opportunity to wish you a safe and prosperous year ahead. We face this year with a little more hope having emerged from a second wave ...
Read More »

  

POPIA 101

All businesses with employees, customers and suppliers must comply with POPIA, which comes into effect on 1 July 2021. Here is a practical guide to the most important aspects   With the commencement ...
Read More »

  

Local hedge funds industry finding its feet in a regulated environment

The South African hedge funds industry ended 2020 with assets under management of R73. 27 billion. Statistics released by the Association for Savings and Investment South Africa (ASISA) show that assets under management ...
Read More »

  

Risks in retirement are increasing – but you don’t have to tackle them alone

An increasing risk in retirement is that you will outlive your savings. More retirees feel less confident now that their savings will last, highlighted by a 10% year-on-year drop in confidence reported ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Short-term »

Advertise Here
Advertise Here

From The Glossary »

Icon

Market Value Or Fair Value:

The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.
More Definitions »

 

Advertise

 

eZine

 

Contact IG

 

Media Pack

 

RSS Feeds

By using this website you agree to the Terms of Use.
Copyright © Insurance Gateway (Pty) Ltd 2004 - 2021. All Rights Reserved.