Question:
Hi there, My husband recently resigned from his job and would like his pension/provident fund to be paid out to him. He contacted his employer to retrieve the documentation in order to request the pay out. His employer then notified him that they only pay over pension fund contributions to the fund once a year on the 1st January. Is this allowed? Isn't the point of a pension/provident fund to invest contributions and allow to grow? It seems as thought the company is keeping the money in their account in order to earn interest when that money should actually be working for employees.
Answer:
Samantha,
No, this is not allowed, in fact it is a very serious offense not to pay over pension fund contributions, for which the directors of your husband's company will be criminally prosecuted. Our law requires that pension fund contributions MUST be paid over the fund within seven days of month end. Of course, it is fraud to withhold this money in the company's bank account as it - and the investment income thereon - belongs to the employee. You should report this matter to the FSB (Financial Service Board) as a matter of urgency.
