Question:
My employers contribute a percentage towards my private RA in the form of a reimbursement to my salary each month, but since I turned 65 years they informed me that as I am over the retirement age, they no longer need to pay that even though I am still working. Are employers legally entitled to do this if it is not stipulated in the employment contract?
Answer:
Tiena, In a company-sponsored retirement fund (pension or provident fund), the employer will typically cease contributions once the employee reaches normal retirement age per the fund rules. An retirement annuity is not a company-sponsored retirement fund, the contract is between you and the retirement annuity provider. Also, the retirement age stated in the retirement annuity is not compulsory, ie you can keep contribution beyond that age. The contribution paid the employer thus has nothing to do with the fund rules (which do not bind the employer) but with your employment contract. If the contract states that your employer will only pay until you turn 65, or until you reach the retirement annuity's normal retirement age, then they can apply that rule.
