Parly's Standing Committee on Finance wants action against employers who've not been paying employee pension contributions
It said it was concerned by the trend where some municipalities and private sector companies did not make employee pension contributions.
Member of the Standing Committee on Finance, Nonceba Gcaleka-Mazibuko. Picture: @ParliamentofRSA/X
CAPE TOWN - Parliament's Standing Committee on Finance says it wants action taken against employers for not paying employee pension contributions.
It said it was concerned by the trend where some municipalities and private sector companies did not make employee pension contributions.
The committee said this was brought to light by the recent two-pot retirement withdrawals, where beneficiaries found no available funds in their pensions.
Nonceba Gcaleka-Mazibuko and the African National Congress (ANC) in November called for the establishment of an ad-hoc committee to investigate some local government municipalities and private companies found in violation of Section 13A of the Pension Fund Act.
She told a cluster media briefing on Monday that the matter was still on the committee’s agenda and they would be meeting with the pension funds adjudicator and the Financial Sector Conduct Authority to get a full sense of the problem.
"We have condemned and are still condemning the non-compliance by municipalities as well as the private sector because the employer has to contribute."
Gcaleka-Mazibuko said that non-compliance affected entire families.
"Even your family gets affected and your health, as a person, gets affected."
She said the committee was taking the matter very seriously and would decide on Friday what should happen to the employers.