FSCA proposes Treasury sets up centralised fund for unclaimed pension money
The Financial Sector Conduct Authority (FSCA) was has been sitting with over R44 billion worth of unclaimed pension funds owed to 2.5 million South Africans.
JOHANNESBURG - The Financial Sector Conduct Authority (FSCA) said that it had proposed to Treasury that there be a centralised fund for unclaimed pension monies, in an effort to trace and pay beneficiaries.
The regulator was has been sitting with over R44 billion worth of unclaimed pension funds owed to 2.5 million South Africans.
Citizens who believe they have money owed to them have been urged to come forward.
The Financial Sector Conduct Authority is working to try and allocate billions of rands to the rightful beneficiaries and said that it had put in place measures to assist South Africans get what’s owed to them.
Manager for retirement fund conduct supervision, Takalani Lukhaimane, said that many people had accused administrators of not doing enough to trace beneficiaries.
Lukhaimane said that they had suggested that Treasury set up a centralised pension fund.
“Which will be tasked with tracing and making payments and hold that money until a person comes forward.”
One of the reasons cited by the regulator that had led to billions not being claimed by beneficiaries was that many employees did not provide their employers with sufficient information regarding their pension funds.