Transcript Presentation name

FSLGAB – changes to Section
13A
Asanda Ntile
19 August 2013
Late/Non payment of contributions
Source – Personal Finance
How members are affected
•Unpaid GLA premiums – no death/disability
cover
•Non payment may be discovered much
later, upon retirement or withdrawal
Original Section 13A
•Payments to be made no later than 7 days after the month
which they are due
•Data in respect of reductions to be made by 15th day
•Interest is payable on outstanding contributions
•Monitoring duty placed on PO or any party appointed by Fund
•Should non payment continue for 90 consecutive days,
monitoring person must report to NPA within 14 days
Original Section 13A
Consequences of non payment:
•Late payment interest
•Registrar may report to Enforcement Committee
•Employer may be liable for investment loss to members
The reality
•3 800 complaints to the PFA in 2012
Source – Personal Finance
Amendments to Section 13A
The objective
•Extend liability for non payment of
retirement fund contributions by an employer
to certain individuals within that employer
Additions to Section 13A
The following persons are liable:
•Company - controlling shareholders
involved in financial affairs
•Close Corporation – controlling members
involved in financial affairs
•Any other employer – board members
involved in management of financial affairs
Additions to Section 13A
Employer obligations:
•Notify the Fund of relevant persons
•Failing which, personal liability for
•All directors
•All members
•All persons comprising governing body