Engineering News reports that the Pension Funds Adjudicator (PFA) has reported the SA Local Authorities Pension Fund to the Financial Services Conduct Authority (FSCA) and has recommended that action to be taken against its officials.

PFA Muvhango Lukhaimane said there had been several complaints against the fund and the lack of response from the fund reflected a disregard of the Pension Funds Act, its rules and the best interests of members. She severely criticised the fund for its failure to respond to repeated requests for information. Lukhaimane said that the fund’s non-compliance was “intolerable” and included several contraventions of the Act and also reflected poor conduct of duty. The PFA dealt with high volumes of complaints which needed to be disposed of expeditiously in order to properly fulfil its mandate, Lukhaimane noted. The failure to respond to enquiries and to timeously respond to complaints by such persons was a failure to uphold their fiduciary responsibilities. It impeded the adjudicator’s ability to deliver on its mandate and, if allowed to continue, would render the adjudicator ineffective. “When the administrative wheels of a fund come off, it starts off with the fund’s failure to respond to complaints that require data from its administration system relating to payment of contributions,” Lukhaimane pointed out.

• Read the full original of the report in the above regard at Engineering News

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