Legal Requirements (Section 13A)

Section 13A of the Pension Funds Act defines the rights of the Fund and the responsibility of the Employer. Below are brief highlights from the act.

The Employer must pay the contributions to the Fund by the 7th day after the end of the month in respect of which the contributions were payable.
The contribution payment must be paid directly into the Funds bank account and must reflect therein by the 7th day after the end of the month in respect of which the contributions were payable.
Penalty interest is payable on arrear contributions by the Employer at the prescribed rate.
The Employer must provide the Fund with a monthly reconciliation of its member data which agrees to the contribution payment made, by the 15th day after the end of the month in respect of which the contributions were payable.
The act defines the minimum information that the Employer must provide in the monthly returns
The act also provides a reporting procedure that the Funds are obliged to follow should the Employer not pay over contributions in the prescribed period.

Person(s) Responsible	Steps in the Process	Timeframe
Employer and/or Member	Contribution not paid or not paid in full	By the 7th day of each month
Administrator	Contact the Employer to solicit payment	Within 3 days (recommended)
Administrator	Report to “Monitoring Person” or PO	By the 22nd of the month
Administrator “Monitoring Person” or PO	Report to Board of Trustees	By the 22nd of the month
Board of Trustees	Inform Members and advise Registrar of actions taken	To be determined by trustees
“Monitoring Person” or PO	Report to the National Prosecuting Authority (NPA)	90 days after contributions were due, but within 14 days thereafter
“Monitoring Person” or PO	Second report to Registrar	Within 14 days after the 90 day period has expired
Registrar	Report to SARS