YOUR PENSION PROTECTED: ADJUDICATOR ENSURES FAIRNESS

Your pension savings are critical to your financial future. If something goes wrong with your pension fund, such as delayed payments or incorrect calculations, the Pension Funds Adjudicator can help resolve disputes.

During the 2024/5 financial year, the Pension Funds Adjudicator received 10 331 new complaints (9177 in the previous year) and disposed of a total of 10 100.

The new Pension Funds Adjudicator Lebogang Mogashoa would like every member of a pension fund to be aware of the existence of the Adjudicator’s office, as well as how and when to lodge a complaint if something goes wrong.

“The Pension Funds Adjudicator (PFA) is an independent authority established by law in South Africa to investigate complaints of maladministration and unlawful conduct in the management of pension funds. 

“The PFA provides a trusted avenue for pension fund members, employers, and trustees to resolve disputes quickly and effectively. Importantly, the PFA’s decisions carry the same weight as a court judgment, which means they are binding and enforceable. 

“By turning to the PFA, you avoid the high costs and lengthy delays of court proceedings, gaining access to justice that is both accessible and efficient,” Mogashoa said.

What Counts as a Complaint?

You can complain to the PFA if your issue is about the administration of a pension fund. Examples include:

• Your pension benefit is not paid, or it is unnecessarily delayed.
• The amount you received is calculated incorrectly.
• Your employer is not paying contributions into the fund.
• Trustees are not managing the fund properly or communicating clearly.
• The fund has made a decision outside its powers.

You cannot complain about matters outside pension funds (like medical aid) or matters already decided by a court.

When to Complain?

First, you are encouraged to raise the issue directly with your pension fund or employer. If they do not resolve the matter to your satisfaction within 30 days, you can go to the PFA.

“Disputes can often be resolved amicably among the parties without getting the Adjudicator involved at all. 

“In fact, the Pension Funds Act encourages this. So, it is important that you first discuss your complaint with your employer and the fund, perhaps through the fund administrator, to see if they can help you resolve the problem,” Mogashoa said.

How to prepare Your Complaint?

• Write down your details (name, ID, contact info).
• Include your pension fund details (fund name, membership number).
• Explain clearly what the problem is and what assistance you require from the PFA. State what has happened and why you feel that such events amount to maladministration, excess of powers, a dispute of law or fact, or dereliction of duty on behalf of the employer.
• Attach proof (like payslips, fund statements, or letters).

Where to send your Complaint?

You can lodge a complaint with the PFA online, by email, fax, post, or visiting the office. Lodging a complaint is free - you do not pay anything.

Investigation and Decision

The PFA will contact the fund, employer, and others involved. The PFA may contact you for more information after receiving a response from the fund or employer. Based on all the facts at its disposal, the PFA will issue a written decision that is legally binding.

Depending on the complexity of a complaint, cooperation of all parties involved, and no delays, the estimated time for resolution of a complaint could be between one to six months. 

Any party who feels that the determination is not in accordance with the law can approach the Financial Services Tribunal or the High Court with a formal application to have the determination reviewed.

Mogashoa added: “The Pension Funds Adjudicator is there to protect your rights as a pension fund member. 

“If you ever face problems with your pension, knowing how to complain and what counts as a valid complaint, ensures you do not lose out on the benefits that you have worked hard for.”

For general enquiries or to lodge a complaint visit www.pfa.org.za, call 012 346 1738  / our toll-free number: 0800 74 4444 or email: Enquiries@pfa.org.za