Today's Labour News

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fsbBusinessLive reports that Treasury deputy director-general Ismail Momoniat says that legislation is needed to compel pension fund administrators to increase efforts to trace beneficiaries and pay out billions of rand in unclaimed funds.  

The Financial Services Board (FSB) estimates that more than R40bn in pension funds remains unclaimed.  Health Minister Aaron Motsoaledi recently said billions of rand due to former mine workers remained unclaimed, while Chamber of Mines CEO Roger Baxter put the figure at R3bn for the mining sector.  The unclaimed benefits, which include cash accumulated towards retirement and deaths, are held in investment vehicles and overseen by trustees, who use tracing companies to find beneficiaries, albeit sometimes reluctantly.  Momoniat, an FSB board member, said on Wednesday that a law was needed to provide guidelines and to compel trustees to find beneficiaries and pay out the money.  The FSB has been asked to deal with this issue.  A lack of record-keeping, the weak provision of information to employees as well as poor tracing efforts are among the reasons that workers’ benefits remained unclaimed.

  • Read this report by Michelle Gumede in full at BusinessLive

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