The Financial Sector Conduct Authority (FSCA) has published a list of companies who have been defaulting on their employee pension contributions. More than 6000 employers failing to pay R8.33 billion in pension contributions. The FSCA website lists those companies and has asked employees to double check if their employer is listed. The list is live and constantly updated yet there seems to be no action being taken. This is kind of typical really because without consequences where is the punishment?
The problem is massive for those reaching retirement age thinking they have a pension when in reality they have nothing. Some of the companies and even a municipality have failed their employees to such an extent that this has been happening for many years and in some cases over 26 years.
This is a criminal offence and sadly that does not change anything really because if you have no pension due to internal corruption and theft it does not change anything. 26 years is for many people half their career or longer and will severely impact their retirement.
I mentioned that my wife had a pension retirement policy internally with her company and there was some confusion with many staff members having pulled out and left thinking that there was nothing left in the retirement pot. Thankfully this was not true and her pension remained intact and this was a substantial amount that we need to move off shore. That policy had ended so it was not something we could continue and why this has become more of a lump sum than a pension payout monthly. This reinvested will still serve as a pension of sorts and no damage was done.
Skimming through the list which is 352 pages long which is seriously crazy we can see the Motor Industry Provident Fund, Hairdressing Beauty and Skin Care Industry Pension Fund, Private Security Sector Provident Fund, Municipal Councilors Pension Fund. I stopped checking through the list on page 50 as this is just too heart breaking to see knowing that each company represents x amount of employees. Some of the companies are known big names and they would have several hundred employees so the 6000 company number could represent a few million people who are in dire straits when they need the support the most in their golden years.
I would not know what the answer is for something that is that terrible and these people have been screwed over and let down by those running these companies. My understanding of these types of pension policies is you your self contribute and then the company matches that contribution which is part of your employment package deal. These company contributions are what make the big difference from being on the breadline to something decent that is a livable retirement pension.
Surely instead of publishing these lists the FSCA should be tackling this issue and actually tackling this problem head on informing those working in these companies on what has been taking place. Most people would not be able to check exactly where these lists are published as the site is confusing and you have to open up multiple links in order to find these lists.
Posted Using INLEO
