Two-pot system: Scores of consumers complain about not being able to tap into savings
It emerged that some companies had fallen behind on their pension contributions, meaning workers paying towards their pension fund won’t be able to access a portion of their savings yet as a result of the non-compliance.
Picture: Franz W/Pixabay
JOHANNESBURG - As consumers cash out their pension funds under the two-pot retirement system, the Pension Funds Adjudicator said it had received scores of complaints from frustrated consumers who are unable to tap into their savings.
This after it emerged that some companies had fallen behind on their pension contributions.
This means workers paying towards their pension fund won’t be able to access a portion of their savings as a result of the non-compliance.
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It’s been more than a week since the two-pot retirement system took effect, dividing pension funds into vested, savings and retirement pots.
While pension funds have received and processed thousands of withdrawal requests, some members have been short-changed as a result of non-compliance with their employers.
Pension Funds Adjudicator Muvhango Lukhaimane said the non-compliance of some companies remained a massive issue.
"Just today [Tuesday] I have received 76 complaints that I must work through. Out of those, 76.63% have to do with employers having not paid contributions to the funds. So, that’s like 82%."
Some municipalities and security companies are among the biggest offenders.
The adjudicator said it was working around the clock to investigate the influx of complaints.