What are my rights?
- All employees are entitled to an annual benefit statement from their provident fund.
- A provident fund pays benefits in cash at retirement, whereas a pension fund pays a third of benefits at retirement, with the rest paid throughout the lifetime of each member.
- An employee and his or her employer must both complete a withdrawal form in order to claim benefits.
- If a pension or provident fund member dies, the death benefit is paid to his or her financial dependants, such as a spouse and/or children or beneficiaries.
- By law employers must pay across contributions deducted from employees to the provident fund on a monthly basis. When contributions to the Fund are outstanding for 60 days, members of the Fund will be notified via sms. After 90 days the employer is reported to the Financial Services Board and a criminal case is made at the SAPS. Employers are also required to pay late interest on the contributions paid late to the Fund.
- Though still required to contribute to the fund, for the most part employers cannot take deductions from employees who are on unpaid leave.
- A member has the right to lodge a complaint with the Pensions Funds Adjudicator (PFA) if an employer deducts contributions but doesn’t pay the monies over to the fund or to the administrator of the fund. In these cases, prior to lodging a complaint at the PFA, you are requested to submit a complaint to firstname.lastname@example.org to assist in resolving the complaint.
- A claim can be made against a fund member for maintenance owed and for future maintenance which will become payable by a member in terms of a maintenance order.
- If an employer wishes to move members to another provident fund – the employer must first consult with members and allow members to vote on the matter. The employer must provide a benefit comparison of the two funds. Where an employer does not achieve a 75% approval from members they cannot move members to another fund.
PLEASE NOTE: Transfers of Road Freight and Logistics Provident Fund members to other funds will only be considered where the transfer is:
- fair and equitable;
- members’ rights are protected,
- members’ reasonable benefit expectations in terms of the rules of the fund, and any additional
benefits are met.
Please refer to Section 14 of the Pension Funds Act for more information on fund transfers.