Companies owe pension funds more than R6bn in contributions

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Private security firms are the worst offenders, putting nearly 250 000 workers at risk.

The Financial Sector Conduct Authority recently published a list of companies that apparently deducted pension fund contributions from employees but failed to pay the contributions over to the respective pension funds.

“The PFA states that employers have seven days after the expiration of the period in respect of which contributions are due to pay the contributions prescribed in terms of the retirement fund rules to a retirement fund. “Whilst financial difficulties faced by municipalities and the effects of Covid-19 on the economy are public knowledge, employers still have an obligation to their employees to pay over deducted contributions to the retirement fund as per the PFA.

Contributions were not received for more than three months for more than 243 000 security guards, while those for 261 000 members are up to date. “Conduct standard 1 of 2022 states that where there is a discrepancy of less than 2.5% of the total contributions payable for the month and the contribution schedule for the month, then that is not deemed as a contravention.

Sandile Khumalo, chair and statutory manager of PSSPF, elected not to answer questions about the large number of security companies on the FSCA list.

 

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