When employers fail to make pension contributions to the relevant fund administrators
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GUEST – Muvhango Lukhaimane - Pension Funds Adjudicator
Key takeaways
1. - When your employer fails to pay over contributions to your fund, the trustees of the fund must be notified. If they regard the employer's failure to comply as material, they must inform the affected members.
2. - An employer's failure to comply with must also be reported to the Financial Sector Conduct Authority and the board must outline what it is doing to recover the unpaid contributions.
3. - Employers are liable for interest on outstanding contributions at the repo rate plus 2%. · If contributions are still outstanding after three months, a criminal case must be lodged with the South African Police must be informed.
4. - The responsible person at an employer can be held liable and face a fine of up to R10-million or imprisonment for up to 10 years.
5. Directors' property can be attached to recover outstanding contributions.
Key takeaways
1. - When your employer fails to pay over contributions to your fund, the trustees of the fund must be notified. If they regard the employer's failure to comply as material, they must inform the affected members.
2. - An employer's failure to comply with must also be reported to the Financial Sector Conduct Authority and the board must outline what it is doing to recover the unpaid contributions.
3. - Employers are liable for interest on outstanding contributions at the repo rate plus 2%. · If contributions are still outstanding after three months, a criminal case must be lodged with the South African Police must be informed.
4. - The responsible person at an employer can be held liable and face a fine of up to R10-million or imprisonment for up to 10 years.
5. Directors' property can be attached to recover outstanding contributions.
