In case you missed it, The Financial Sector Conduct Authority (FSCA) issued a communication regarding retirement funds contributions, which needs noting.
Current Statute
In terms of section 13A of the Pension Funds Act, employers have seven (7) days after the expiration of a period (in respect of which contributions are due) to pay the contributions over to the fund. For example, June 2022 contributions were due by 7 July 2022.
Section 37(1) of the Pension Funds Act makes the contravention of section 13A a criminal offence, with consequences of potential personal liability for the company’s directors.
New Name and Shame Policy
Unfortunately, arrear contributions are prevalent in the retirement funds space. The FSCA now intends to publish the names of retirement funds and employers who are in contravention. The authority is compiling a list of guilty parties and validating the arrear amounts.
This is an alert to prioritise being in good standing to avoid being part of the publication.
Who is Included or Excluded?
Arrear contributions arise when employers fail to pay employer and employee contributions over to the retirement funds they participate in by the prescribed deadline.
This does not include instances where the fund and employer have registered (and applied) rules that enable the suspension of contribution payments for a period known as a contribution holiday.
What’s Next?
If you are concerned that your organisation may be in arrears and would like assistance, please contact us today at acirfa.puorgorodnim@noitacinummoc.
