Question:
In May of this year the provident fund of my previous employer was liquidated. I was told that if the fund is liquidated it can take anything between 12-18 months to pay out as it has to go through the FSB of SA, is this true?
Answer:
Di,
From our experience, some administrators (who we are not at Liberty to mention) can take over a year merely to effect a s14 fund transfer. So it can well take a year or longer to wind up a fund, especially if the administrator is not motivated, or there are outstanding (unallocated) actuarial surpluses or reserves (the auditors cannot sign off the annual financial statements until the actuaries have signed off on these surpluses). It is easy to blame on the FSB; if the records were in order and up to date, it would not have to take so long.
