Today's Labour News

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FSCAFin24 reports that according to the Financial Sector Conduct Authority (FSCA), naming and shaming employers who have not paid retirement fund contributions over into the retirement fund set up for their employees has been a "good move" that made several employers pay attention to their debt.

Astrid Ludin, FSCA deputy commissioner, told last week’s Pension Lawyers Association conference that more funds were reporting unpaid contributions and more employers were responding when contacted about unpaid contributions, which amounted to some R7 billion. In late March, the FSCA published its latest list of employers with outstanding contributions up to July last year. It noted that since the first list was published in August last year, close to 90 employers had responded by entering into arrangements to settle what they owed. Around nine have paid their outstanding contributions. The list of errant employers still runs to around 4,000 employers and includes many security companies that have not paid contributions to the Private Sector Security Provident Fund for their employees. Other employers on the list include municipalities and furniture companies. In some cases employers have failed to pay their portion of the contributions. In other cases, they have also deducted retirement fund contributions from employees’ salaries and unlawfully used this money for their own purposes. The FSCA’s list of employers with arrear contributions shows contributions outstanding for anything between five months and 21 years. Ludin advised that the regulator had appointed a team that would contact employers with contribution debt and help them understand the options.

  • Read the full original of the report in the above regard by Laura du Preez, editor of Smart About Money, at Fin24

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