The FSCA has published the names of 6 064 employers that have contravened section 13A of the Pension Funds Act, by not paying their employees retirement benefits to pension funds.
The Financial Sector Conduct Authority (FSCA) says 6 064 employers have been defaulting on their payments to retirement funds on behalf of their employees, with total arrears of R8,33 billion.
The FSCA said it has published the names of the 6 064 employers reported to the FSCA as having contravened section 13A of the Pension Funds Act (PFA).
According to previous reports, the two-pot system exposed numerous employers who had been deducting pension contributions from employees' salaries but had failed to remit those funds to retirement funds, with outstanding contributions totaling billions of rands.
“Current data suggests that the severity of arrears is increasing, with late payment interest increasing by 21,5%, compared with a 9% increase in the capital portion of arrears. This indicates that outstanding contributions are remaining unpaid for longer periods and continuing to accumulate interest,” the FSCA said.
