EFF Member of Parliament Sinawo Thambo says it is distressing that it took the introduction of the two-pot system for the Pension Fund Adjudicator to raise the alarm about the pension funds of workers.
Muvhango Lukhaimane indicated that the introduction of the retirement system will expose the extent of employers’ failure to pay their employees’ contributions to pension fund schemes. The system, which kicked off this month, allows workers to withdraw funds from their pension and provident fund savings while still being employed.“We have discovered that 172 local government municipalities have also not been compliant for periods ranging from 26 to 240 months, so respectively municipalities owe a billion to pension funds. And private security companies also owe R6 billion. That’s a total of R7 billion of workers’ money that is unaccounted for.
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