There are multiple reasons for there being an estimated total of R42-billion in benefits owed to more than four million pensioners and pension fund members, according to the Financial Services Conduct Authority 2018 Annual Report.released by advocacy group Open Secrets on Wednesday 30 October 2019, private fund administrators and the regulators have failed collectively to build transparent and accountable structures for the management of these funds.
The disparity in perception about what is at stake here, the Open Secrets report states, is for each side. While R10,000 could be a life-changing windfall for a poor South African pensioner or dependant, it is a small change in the world of the private fund administrator.There are serious socio-economic consequences of depriving ordinary people of their retirement benefits, the report states.” Pensioners interviewed for the report include mine workers and factory workers.
The other wasn’t aware he was entitled to surplus distributions linked to funds with his previous employers. Hunter explains some of the multitude of reasons behind this dire situation. These include funds that don’t actively follow up on members, people who simply don’t know how to claim when they stop working and family members who are uninformed about what to do when a fund member dies.
Hunter explains that preceding the large-scale deregistration of pension funds, there had been a trend for smaller employers to move their employees into umbrella funds.In addition, the Registrar does not maintain the records of individual members. She maintains the records of retirement funds and retirement fund administrators and therefore assists with facilitating your inquiry with the relevant retirement fund or retirement fund administrator.
There is significant evidence to suggest that both the state regulator and private fund administrators cut corners and ignored the law to de-register as many funds as possible in the shortest time.
And once again, the poor and marginalised get hit the hardest! 😢