The African Transformation Movement (ATM) has called for harsh penalties for companies that fail to pay their pension contributions to fund administrators.
The ATM also wants the Department of Employment and Labour to investigate and penalise companies and officials who failed to monitor and report companies that did not pay the pension benefits over to fund administrators.
This comes after the Pension Fund Administrator’s office found that at least 82% of companies were fingered for non-payment of their workers’ pension funds.
Last week, the pension fund adjudicator sounded the alarm following complaints by workers trying to make claims in the first week of the implementation of the two-pot retirement system.
In a media statement, pension fund adjudicator Muvhango Lukhaimane, revealed that their case load for the current financial year was 82% for complaints by workers whose employers were not paying their pension deductions over to administrators.
“Workers usually find out their pension fund balances during either the retirement, resignation and retrenchment stage, however, with the advent of the two-pot system they can access their pension once yearly at any time,” she said.
According to a recent report, municipalities, security firms and retailers were among the biggest culprits in this fiasco, with the Financial Sector Conduct Authority saying some companies had failed to pay over benefits for up to 21 years.
Reacting to this anomaly, ATM leader Vuyo Zungula blamed the ANC led government for not clamping down on non-compliance.
“It is utterly sickening to learn from the Pension Fund Adjudicator Office that 82% of companies in South Africa, in the year 2023/2024, are failing to remit the pension funds that they have deducted from the hard-working citizens. These individuals sacrifice their comfort monthly, driven by the hope of a secure and dignified retirement, only to be met with the harsh reality of corporate greed and exploitation. This reflects a disturbing trend of thuggery within the private sector, prioritising self-enrichment over the well-being of workers and leaving many to scavenge just to survive,” Zungula said.
As such, the party wants the companies to be held accountable for their theft against hard-working employees who were left in the lurch.
“We urge the government to take immediate action against all companies that have profited from the blood and sweat of our people without regard for their future. The time has come to recover the lost funds from these companies and their owners so that workers of this nation receive what is rightfully theirs.
“Additionally, we call for a thorough investigation within the department of labour to uncover how such gross negligence could occur. It is imperative that all who have colluded with these companies or failed in their duties are brought to justice,” he said.
The Star