Question:
Hi, Is there a new law regarding the pay-out of provident funds? The reason I ask is my friend resigned from our company on the 31st of January and she is still waiting for them to pay her out. I was retrenched at the end of June and now we have been told that we will only be paid out at the end of the year or in January.
Answer:
Darlene,
No, there is no new law governing fund pay-outs. At 10X, provided our members' tax affairs are in order, and they have submitted all the required documents (such as a copy of their ID, a completed instruction form stating where the money should go, and proof of banking details), it still only takes 14 to 21 business days to pay out. Six months delays are unconscionable and suggest that something is very wrong with the administration of your fund. You need to bring up this matter with your former HR department and also draw it to the attention of the Fund trustees.
If your Fund is presently in the process of a S14 transfer (ie the Fund is changing its administrator), then it can happen that payouts are delayed until the transfer is complete. But such delays should also not last six months.
