Question:
My wife was accused of taking money from the company she was employed with and was asked to resign. She agreed to pay said amount from her provident fund and signed an acknowledgement of debt for said amount. QUESTION: Can the company request the full provident fund pay-out, which is much more than what is owed, take what is owed and pay my wife the balance (we are not happy with this scenario as we can be cheated in the process) OR Does the provident fund pay what is owed to the company separately, with the balance going into my wife’s bank account? Could you please advise as to the proper process in this matter? Our broker says it is the latter, but not too sure.
Answer:
Robert,
This matter is covered by s37D of the Pension Funds Act (permitted deductions). This section allows the Fund administrator to make deductions from the fund benefit and to pay these to someone else in certain circumstances (such as yours). But it does not permit paying the full balance to another party, for them to make the apportionment. So in your case, the Fund will deduct the amount owing to the company and pay the balance into your wife's bank account.
