Parliament, Wednesday, 27 November 2024 - The Standing Committee on Finance is gravely concerned by municipalities and private companies that contravene with impunity Section 13A of the Pension Fund Act (Act No. 24 of 1956), which mandates employers to deduct employees' contributions and pay to pension funds.
The committee heard from the Pension Fund Adjudicator (PFA) and Financial Service Conduct Authority (FSCA) that private security companies are the biggest culprits, followed by other companies in various sectors such as transport and metal industry, among others.
Furthermore, the committee expressed shock when it learned that some 40 municipalities are also culprits in contravening section 13A of the Pension Act. The Chairperson of the committee, Dr Joe Maswanganyi, said that the contraventions are so serious that those responsible will face the consequences. He called for action to be taken using existing legislation to bring perpetrators to book.
"We appreciate the action taken by PFA to publish on their website names of all culprits, which saw some of them making efforts to rectify their mistake," said Dr Maswanganyi.
Lastly, the committee called on the National Treasury to find mechanisms to regulate service fees charged by pension fund administrators when processing claims from the two-pot system. The committee also said that FSCA and PFA should move with speed to resolve the problem of unclaimed pension benefits.
