Can my employer withhold my pension fund benefit?


Question:

Hi, can my previous employer the department of education hold back my pension funds and refuse to pay me out. Is it legal for them to hold back my pension? Thank you

Answer:

Noor, Your employer may put a hold on your pay-out pending a criminal investigation or a court case, and they can make a claim against your fund only if: (a) if you owe the employer money, or the employer has paid money on your behalf that you need to pay back; (b) if the employer paid you an amount to which you were not entitled to; (c) the employer incurred a loss due to your theft, fraud, negligence or any misconduct on your part, which you have admitted to in writing, or which has been proved in a court of law; (d) any amount, plus interest, for which the Fund is liable under a guarantee furnished by the Fund in your favour in respect of a loan issued to you;

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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