Employer didn’t pay pension contributions
Some workers belong to pension funds connected to their employer, where the employer pays a monthly contribution into the fund. This may provide much-needed comfort and financial security, knowing that you will retire comfortably because your pension savings, which you have accrued during your years of service, will sustain you.
But what happens when things do not turn out the way you planned, and you suddenly realise that you may not be set up for a happy retirement because your employer has been making deductions from your salary but not paying over the contributions to the fund administrators? This is the harsh reality for many workers in South Africa.
How the law protects you:
• Section 13A of the Pension Funds Act protects the rights of vulnerable employees who may fall victim to such practices.
• This section requires employers to pay over member contributions to the fund within a specified time after having deducted it from the members’ pay.
• Section 37 of the Pension Funds Act details the penalties that can be imposed if your employer is found guilty of contravening Section 13A.
• According to Section 37, failure by employers to pay member contributions to the fund is a criminal offence that can get you a fine of R10 million or imprisonment of up to 10 years.
But even with this protection, it’s best to avoid finding yourself in such a messy situation that could take years to finalise, if at all.
What you cando:
• Request your benefit statement regularly, it is your right to do so
• Monitor the amounts reflecting on the statement regularly
• Dispute any anomalies or query any information that does not look correct
• If the employer is not assisting you and you have a Scorpion legal policy, let our Pension Fund Specialist Department step in and assist.
We have a team of lawyers available to answer your legal questions every first Thursday of the month from 11:30 to 13:30 on the Scorpion Legal Protection Facebook page for free. Have your legal question answered on the spot at the Scorpion Live Q&A.
This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.