It is a criminal offence for employers to withhold contributions they are obliged to pay, however successful prosecutions are rare
Poor governance within funds and administrators is the reason behind most complaints to the pension funds adjudicator, it has emerged.
Adjudicator Muvhango Lukhaimane said, after releasing her office’s 2017-2018 annual report, that fund members have been forced to complain after things that should have been dealt with are left hanging, resulting in thousands of complaints and stretched resources at her office.
Proceed to Source : BusinessLive
Be careful when deciding on how to use your retirement savings to provide a pension, as the decision you make may be one you are stuck with for life.
A retired Harmony Gold Mining Company employee found this out the hard way when his pension proved to be too low to meet his daily needs.
The Sentinel Retirement Fund told “Mr Z” that it could not meet his request to increase his pension of just over R2 350 a month. He then asked the Pension Funds Adjudicator to help him withdraw his lump sum or transfer his benefit to another fund.
The adjudicator, Muvhango Lukhaimane, wasn’t able to help Mr Z as she found that the fund had acted within its rules and he had agreed to the pension.
Proceed to Source : Sowetan
Diversity is strength.” Nowhere is the aphorism more appropriate than in the world of investing. It is the principle that underpins Regulation 28 of the Pension Funds Act, which aims to protect people from poorly diversified portfolios by limiting how much they can invest in certain asset classes, particularly riskier ones, like equities, property and foreign assets.
Proceed to Source : Mail & Guardian
Government’s recent default regulations applicable to the pension funds industry will ensure that members are better informed about their decisions at retirement, Muvhango Lukhaimane, the pension funds adjudicator has said.
Lukhaimane said once fully implemented, the regulations would require that pension funds ensure that an explanation is given to a member in “understandable language” about the risks and costs of electing a one-third lump sum benefit with a guaranteed period and a spouse’s pension.
This came following a complaint that respondent Sentinel Retirement Fund had refused to pay a lump sum retirement benefit.
Proceed to Source : IOL
Good governance is key to the well-being of the retirement funds industry, says the Pension Funds Adjudicator, Muvhango Lukhaimane.
Addressing the winter conference of the Batseta Council of Retirement Funds for South Africa in Durban, Lukhaimane said in the light of recent reforms with much stronger regulation and supervision, compliance was not enough.
“The technocrats have put in place new rules of the game. However, it is no longer only about compliance.
“It is about the decision-making process and the implementation of those decisions. It is about governance,” she said.
Proceed to Source : FA News
The Pension Funds Act protects citizens not only against creditors but also from themselves in that it makes certain acts or agreements in relation to pension benefits invalid.
Section 37 of the Pension Funds Act prevents pension benefits from being ceded, pledged or hypothecated, or being subjected to execution under a judgment or court order. Where a member attempts to cede, pledge or hypothecate a benefit, the fund may withhold or suspend payment.
Proceed to Source : News 24
Our labour laws are constantly evolving as the South African government seeks to balance stronger protections for employees with the need to create a business-friendly investment climate.
This means that we can expect to see a number of amendments to the country’s core labour law acts – including the Basic Conditions of Employment Act and the Unemployment Insurance Act – over the next couple of years, says Rob Cooper, tax expert and director of legislation at Sage.
Cooper outlined some of the biggest labour law changes in the pipeline, below.
Allan Greenblo, Editorial Director
The existing Pension Funds Act – running to more than 400 pages, with regulations, constantly amended – deserves to be placed in a home for the aged.
In 1956, Elvis Presley topped the hit parade with ‘Heartbreak Hotel’. On Broadway, the musical ‘My Fair Lady’ opened. Egyptian president Gamal Nasser nationalised the Suez Canal, Nikita Krushchev denounced Stalin and a Springbok rugby team toured New Zealand under management of Danie Craven.
Proceed to Source : Insurance Gateway