These SA companies aren’t paying employees’ PENSION
In a shocking discovery, thousands of SA companies aren’t paying employees’ pension, says a financial-sector watchdog. Is yours on this list?
In a groundbreaking enquiry by a financial-industry watchdog, it’s been uncovered that thousands of SA companies aren’t paying employees’ pension. This is according to the Financial Sector Conduct Authority (FSCA), which has secured a list of thousands of companies in SA who are in arrears with their pension funds.
SA COMPANIES AREN’T PAYING EMPLOYEES’ PENSION
The full list – which runs over 100 pages – has the names of 3 262 employers who have fallen behind in paying their pension funds. However, this list isn’t even comprehensive says the watchdog. As of 30 April 2023, the FSCA had received a total of 5 430 employers that contravened section 13A of the Pension Fund Act (PFA).
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According to the findings by FSCA, one in four offending companies has pension contributions outstanding for five or more years. While nearly one quarter has outstanding contributions for between one and five years. Worrying, the worst of SA companies aren’t paying employees’ pension are more than 20 years behind.
BILLIONS IN ARREARS
“The FSCA’s preliminary statistics indicated that municipalities and private sector companies have approximately R1 billion and R6 billion arrear contributions, respectively,” the FSCA statement said on Thursday (31 August 2023).
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“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 and employers to the retirement fund as per the Pension Funds Act,” concludes the FSCA.
THE FULL LIST HERE
Click on the link HERE to view the full list and see if your employer is mentioned. You’ll note the overwhelming majority of payments due, and the longest periods unpaid, come from private security and clothing sector, as well as municipal government. This is due to many of the named companies using the same pension fund, says the FSCA.
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The FSCA said it had issued a notice in June 2022 of its intention to make the information public regarding the arrears and asked retirement funds to inform participating employers.