<\/p>\n
The names of 6 064 employers reported to be in arrears with retirement fund contributions have been published by the Financial Sector Conduct Authority (FSCA) \u2013 with unpaid pension contributions climbing to an estimated R8.33 billion, affecting more than half a million retirement fund members.<\/p>\n
The number of employers listed has more than tripled in less than three years, \u201cincreasing from 23 funds and 5 430 employers in April 2023 to 75 funds and 16 556 employers as at 28 February 2026\u201d, the FSCA said in a statement.<\/p>\n<\/div>\n
Read\/listen:
FSCA warns of sophisticated scam using regulator\u2019s identity
Employers face tougher enforcement for late pension fund contributions
FSCA to clamp down on failing pension fund trustees<\/p>\n
This is the fifth list of defaulting employers the regulator has released since 2022 as part of its campaign to improve transparency, alert affected members and pressure employers and retirement funds into resolving outstanding contributions.<\/p>\n
The employers were reported to the regulator for contravening Section 13A of the Pension Funds Act, which governs the payment of retirement fund contributions.<\/p>\n
The FSCA said the total value of arrears had increased by R1.04 billion (14.2%) from R7.29 billion reported a year earlier.<\/p>\n
\nLate payment interest now accounts for 43.5% of total arrears.<\/p>\n<\/blockquote>\n
Current data also suggests the severity of the arrears is increasing, the regulator said, with late-payment interest jumping 21.5%, compared with a 9% increase in the capital portion of the arrears.<\/p>\n
\u201cThis indicates that outstanding contributions are remaining unpaid for longer periods and continue to accumulate interest,\u201d the FSCA said.<\/p>\n
\n\nADVERTISEMENT<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
North West, Free State top municipal arrears list<\/strong><\/p>\n
Municipalities remain a major area of concern.<\/p>\n
Entities participating in local government retirement funds account for 21.5% of total arrears.\u00a0Bargaining council funds represent nearly 77% of total arrears.<\/p>\n
Municipalities in the North West and Free State account for almost 80% of all municipal arrears.<\/p>\n
Signs of improvement<\/strong><\/p>\n
The FSCA says there have however been signs of progress.<\/p>\n
Since the regulator first began publishing the list defaulting employers in 2022, retirement funds have reported recoveries of about R1.01 billion, representing 12.1% of estimated arrears.<\/p>\n
More than 200 employer records have improved their compliance status since the previous publication through partial settlements, payment arrangements or voluntary termination following business closures.<\/p>\n
Read\/listen:
FSCA cracks down on over R5bn in unpaid pension fund contributions
Employers face tougher enforcement for late pension fund contributions<\/p>\nThe regulator also lauded National Treasury\u2019s decision to withhold equitable share allocations from persistently non-compliant municipalities, with improving contribution payments in parts of the local government sphere.<\/p>\n
\n\nADVERTISEMENT:<\/p>\n
CONTINUE READING BELOW<\/p>\n<\/div>\n<\/div>\n
Enforcement pressure building<\/strong><\/p>\n
The FSCA notes it will continue to collaborate with key stakeholders, including the Auditor-General, National Treasury and law enforcement to ensure accountability.<\/p>\n
In 2025, the FSCA warned that the future Conduct of Financial Institutions (Cofi) Bill would significantly strengthen its powers over employers that fail to pay retirement fund contributions.<\/p>\n
Under the proposed legislation, employers participating in retirement funds will become supervised entities, allowing regulators to issue directives, conduct investigations and, in serious cases, remove directors responsible for persistent defaults.<\/p>\n
The growing arrears have also become a recurring concern for the Pension Funds Adjudicator.<\/p>\n
Previous industry data showed that employers\u2019 failure to pay contributions remains one of the leading causes of complaints lodged by retirement fund members, with trustees increasingly being warned that they have a fiduciary duty to pursue defaulting employers.<\/p>\n
Read: Pension funds and administrators could face summons for ignoring complaints<\/p>\n
The FSCA urges members who are concerned that their pension contributions may not have been paid to contact both their employers and their retirement funds, and to approach the regulator if their concerns remain unresolved.<\/p>\n<\/p><\/div>\n
#Employers #owe #R8.3bn #pension #contributions #FSCA<\/p>\n","protected":false},"excerpt":{"rendered":"
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