How long can a fund withhold my benefit?

There’s no fixed period in the Act, but trustees must act reasonably. If the employer delays legal proceedings or fails to provide updates, the fund may release payment to avoid prejudice to the member.

 

Can my employer deduct money without my consent?

No. Deductions for employer losses require either your signed admission of liability or a civil or criminal court judgment.


Does a criminal case allow deductions?

Yes, but a criminal conviction alone is not enough. The employer must  obtain a  compensation order granted by the criminal court in terms of section 300 of the Criminal Procedure Act, 1977. 


What happens if I resign before the employer gets a judgment?

The fund may withhold your benefit temporarily if the employer requests this and shows a valid claim, but only while legal proceedings are actively pursued.

 

What if I think withholding is unfair?

You can make representations to the trustees before the trustees make a withholding decision. If you will suffer prejudice (e.g. financial hardship) or you provide information which weakens the merits of the employer’s case, the trustees must weigh this against the employer’s claim when deciding whether to withhold the benefit. Once they have decided to withhold the benefit and you do not agree with this, you can lodge a complaint with the Pension Funds Adjudicator


Who checks that deductions are legal?

Trustees decide, and the section 13B administrator verifies paperwork and executes the decision under the law and the fund’s compliance standards.

 

Can maintenance or divorce orders be deducted without my consent?
Yes, if they are valid court orders. These deductions are allowed by law.

 

What documents must the employer provide to the fund?
A copy of an admission of liability or a civil/criminal judgment, withdrawal claim form, all supporting evidence of loss, legal proceeding documents and updates on legal proceedings taken.

 

Where can I complain if I disagree with the fund’s decision?

You can lodge a complaint with the Pension Funds Adjudicator.