Many consumers complain about lack of access to savings

JOHANNESBURG: As consumers cash out their pension funds under the two-pot pension system, the Pension Funds Adjudicator says it has received numerous complaints from frustrated consumers who are unable to access their savings.

This happened after it emerged that some companies had fallen behind on their pension payments.

This means that employees who pay into their pension fund will not have access to part of their savings due to non-compliance.

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The two-pot pension system, which divides pension funds into a vested pot, a savings pot and a retirement pot, has been in force for over a week.

Although pension funds have received and processed thousands of withdrawal requests, some members have missed out due to breaches of their employers’ obligations.

Pension fund arbitrator Muvhango Lukhaimane said non-compliance by some companies remained a major problem.

“Especially today [Tuesday] I have received 76 complaints that I have to deal with. Of these, 76.63% relate to employers who have not paid contributions to the funds. That is about 82%.”

Some of the biggest offenders include local authorities and security companies.

The referee said he was working around the clock to investigate the complaints that were received.