FSCA releases names of employers in arrears with contributions

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The Financial Sector Conduct Authority (FSCA) has published the names of pension funds and employers with arrear contributions.

The communication provides the names of 2330 employers that have contravened section 13A of the Pension Funds Act, 1956 (“PFA”), which prescribes how contributions and other benefits should be paid to a retirement fund.

The FSCA received 7,770 complaints about employers that contravened the act as of 31 December 2023.

As a result, the FSCA published the names of the reported employers.

The Conduct Authority reminded employers that the failure to pay retirement fund contributions has severe consequences for members, affecting their withdrawal benefits, as they have seen with the introduction of the Two-Pot.

System, investment returns, and applicable risk benefits.

The FSCA further states that withholding these contributions, despite deducting the contributions from employees' salaries, is a severe offence that could amount to theft and, in some cases, fraud. The FSCA oversees regulated entities, which include retirement funds and their boards.

Employees affected have the right to report the matter to the South African Police, and the FSCA will continue working with the National Prosecuting Authority.

The biggest culprits were the transport, beauty, construction and private security industries, and most notably, several local municipalities, including the ANC Chief Whip office, which is 159 months behind its Local Authorities pension fund.

Due to the long list, we narrowed it down to entities within the Algoa FM broadcast region.

1. Enoch Mgijima Local Municipality (LM) is 153 months behind on contributions to the Municipal Councillors pension fund and 33 months behind on the South African Local Authorities (SALGA) pension fund.
2. Kou Kamma LM is 142 months behind on contributions to the Municipal Councillor's fund.
3. Joe Gqabi District Municipality (DM) is 114 months behind on the Municipal Councillor Pension Fund.
4. Alfred Nzo DM is 111 months behind on the same fund.
5. Buffalo City Metro (BCM) is 89 months behind the same pension fund.
6. Walter Sisulu LM is 33 months behind in payments to the South African Local Authorities (SALGA) pension fund.
7. Makana LM is 33 months behind in SALGA pension.
8. Dr Beyers Naude-Cambedoo is 45 months behind in SALGA pension.
9. Dr Beyers Naude-Ikwezi is 45 months behind in SALGA pension.
10. Dr Beyers Naude-Baviaans has a discrepancy in the date of contributions to the Retirement Fund for Local Government.
11. Raymond Mhlaba LM is 33 months behind SALGA pension.
12. Engcobo LM is 26 months behind in contributions to the Municipal Councillors Pension Fund (MCPF).
13. Emalahleni LM is 26 months behind in MCPF.
14. Senqu LM is 26 months behind in MCPF.
15. Kind Sabata Dalinyebo LM is 25 months behind in MCPF.
16. OR Tambo DM is 25 months behind in MCPF.
17. Haga Haga Hotel in Gxarha (formerly Morgan Bay) is 39 months behind in paying the Hospitality and General Provident fund.
18. Hair Affair in Jeffreys Bay is 70 months behind in paying the Hairdressing beauty and skincare industry fund.
19. East London Sprinkler Installations are 10 months behind in contributions to the Metal Industry Provident Fund.
20. 3 Star Barber in Newton Park, Gqeberha, has a date discrepancy when paying contributions to the Hairdressing, Beauty and Skincare Industry fund.

Garden Route

1. Mossel Bay Municipality is 278 months behind in contributions to the SALGA pension fund.
2. South Cape Security in George is 38 months behind in paying contributions to the Private Security Sector Retirement fund.
3. Phangelo Group in George is 49 months behind in contributions for the Private Security Sector Retirement fund.
4. 1 Stop in Sedgefield is 24 months behind its contributions to the Hospitality and General Provident Fund.