The Pension Funds Act in terms of Section 13A(2)(a), defines the minimum requirements that the Employer has to submit on their monthly returns.
The returns are vital in that it assists the Administrators of the Fund to reconcile payments made by the Employer in respect of members contributions. The returns also provide information advising the Fund of changes to the members records, e.g.: termination of employment, changes to members salaries, transferring between Funds etc.
The monthly returns need to be submitted to the Fund by email in an excel document, not later than 15 days after the end of the month in respect of which payment was made.
Click here for an example of the minimum information required on the monthly return.
Payments of Contributions: Section 13A
In terms of Section 13A(1), the employer is required to pay any contributions to the Fund no later than 7 days after the month end for which such contribution is payable. These contributions should be deposited into the Fund’s bank account and must be reflected therein by the 7th day.
Should the employer fail to pay the contributions over in the prescribed time, late payment interest at the prescribed rate will be levied against the employer in terms of the Pension Funds Act and using the prescribed interest rate.
Should the contributions not be paid, various processes as prescribed will be followed to recover the monies from the Employer, failing which, the Fund will be obliged to follow the reporting procedure as stipulated in the Act.
It is important for the Employer to establish whether the Employee is an existing member of the Fund i.e. if the new employee was previously employed by an associated Municipality and was contributing to the Fund’s this change from one Municipality to another, is merely an LA Switch for the member and not classified as a new entrant. The Fund will move the members benefits to the new LA/Municipality in the same Fund with the same contribution rate.
For new members, the following information will need to be submitted to the fund as soon as the member joins the fund:
New member form
Copy of Identity Document
Fund election form
It is important to note that all forms need to be completed in full and signed.
New members are also required to complete a medical certificate. Further details can be obtained by contacting our Client Services Department.