-
Pension jar
The Auditor General’s office with the assistance of some pension fund administrators have embarked on an investigation to hold senior municipal officials who have contravened Section 38 of the workers pension fund act accountable.
About 100 municipalities across the country were found to have violated the act.
Most of them allegedly deducted the workers’ pension contributions from their salaries but failed to transfer the funds to the respective pension funds.
Workers of the affected municipalities were unable to cash out from the two-pot pension fund benefits last September.
Pension Fund administration expert, Keabetswe Tsuene says they hope to bring those responsible to book.
“So, we are looking at senior officials such as municipal managers, CFOs and any others officials that are in the management financial office of the municipality. And the AG will raise certain flags in their reports and will continue to report these contraventions to National Treasury. What we have seen in the national report that we have provided to Treasury, Treasury has the taken the decision to withhold equitable share of the municipalities that were affected. That has already happened in the month of March. So far it seems it will provide positive outcomes for members that have been affected.”
Two-Pot Retirement System | 82% of firms not paying workers’ pension funds
