Defaulting employers owe an estimated R8.33 billion in pension contributions, affecting about 590,000 retirement fund members, according to Financial Sector Conduct Authority data cited by the Pension Funds Adjudicator.
Deputy Pension Funds Adjudicator Naheem Essop said more than 70% of complaints received by the office relate to contributions that were deducted or due but not paid to funds.
Section 13A of the Pension Funds Act requires employers to transfer contributions within seven days after the end of the month in which they became due.
When payments are missed, workers can lose investment growth and may also be exposed if death or disability benefits linked to a fund lapse.
Retirement funds are expected to monitor payments and notify affected members when an employer defaults. Annual benefit statements can also show whether contributions have been credited, although delayed or incomplete reporting can leave members unaware of arrears.
The adjudicator can issue determinations against employers and other responsible parties following complaints. The R8.33 billion figure is an estimate based on regulatory data and may change as funds report payments and new defaults.
