Call Us: 012 748 4000
Email Us: enquiries@pfa.org.za
FREQUENTLY ASKED QUESTIONS
Here you’ll find answers to the most common questions about our services and processes.
WHAT WE DO
What does the Adjudicator do?
The office of the Pension Funds Adjudicator was established with effect from 1 January 1998 to investigate and decide complaints lodged in terms of the Pension Funds Act.
The Pension Funds Adjudicator investigates complaints and issues determinations which are equivalent to civil judgments in courts of law.
The Pension Funds Adjudicator only investigates complaints in relation pension funds registered in terms of the Pension Funds Act, pension funds includes Provident Funds, Retirement Annuity Funds and a Preservation Funds.
Who can complain to the Adjudicator?
The Pension Funds Act limits the number of people who can complain to the following;
- A beneficiary or former beneficiary of a fund,
- Any group of the above,
- An employer who participates in a fund,
- The Board of Management of a fund, or any member of the board can also lodge a complaint.
What can you complain about?
Your complaint to the Pension Funds Adjudicator must relate to a pension fund; either that it did what it is not supposed to or that it hasn’t done what it is supposed to in terms of its rules and the Act. Also that the employer or any other party has not done what they are supposed to in terms of the rules and the Act. For example, that payment that was supposed to have been made has not been paid.
What must you do before you complain to the Adjudicator?
Before you submit your complaint to the Adjudicator address your complaint to the party against whom you are complaining in writing and wait for a response.
If after 30 days you have not received response or you have received a response but you are still not happy you can submit your complaint to the Adjudicator.
Where can I find copies of the determinations handed down by the Pension Funds Adjudicator?
Significant determinations, raising new legal and factual issues are published at www.pfa.org.za under Determinations.
If you are unable to find a copy of the determination that you are looking for on the website you can call our offices and request for a determination by specifying the name and initials of the complainant or by using our reference number.
Who do we address the complaint to?
You can submit your written complaint to The Pension Funds Adjudicator, either by:
Post: P.O. Box 580, Menlyn, 0063
Fax: 086 693 7472
E-mail: enquiries@pfa.org.za
Website: www.pfa.org.za or
In Person to: 4th Floor
Riverwalk Office Park
Block A, 41 Matroosberg Road
Ashlea Gardens
Pretoria 0181
Can you give me some advice?
The mandate of the Pension Funds Adjudicator is to adjudicate complaints, and as such we cannot provide legal or financial advice as it could compromise our mandate to investigate and determine complaints in a fair and just manner.
The Pension Funds Adjudicator can, however, provide information in order to assess whether or not the complaint falls within the Adjudicator’s jurisdiction or not
How must you submit your complaint to the Adjudicator?
Any complaint to the Adjudicator must be in writing. The Pension Funds Adjudicator will not accept complaints on the telephone
When can you complain to the Adjudicator?
The Pension Funds Act limits the period of time within which you can submit your complaint, the Prescription Act, period of three years applies to complaints in relation to a debt.
What must you tell the Adjudicator in your complaint?
Complaints lodged with the Adjudicator must contain at least the following information:
(i) Full personal details, including your name, postal address, I.D. number, as well as phones (including an alternative number) and fax numbers and e-mail address if you have these. The history of your employment and membership of the fund concerned, together with the date you joined and left the employer and the fund, as appropriate.
(ii) Full details of the fund and the employer including name, address, telephone number. Fax number and e-mail address must be provided.
(iv) Indicate what is it that you are unhappy about as relate to the specific fund and or the employer.
(v) The relief that you seek from the Adjudicator. That is, if the adjudicator was to determine the complaint in your favour what should he/she order to be done and by who?
(vi) Proof that the complaint has been submitted to the fund or the employer e.g. post office registered letter delivery notice or a fax confirmation sheet.
(vii) A copy of the complaint sent to the fund or employer, together with a copy of any reply received from them, should also be sent to the Adjudicator.
(viii) Copies of documents referred to in the complaint which supports your complaint must be attached to the complaint e.g. death certificate where the complaint relates to a death benefit etc.
SUBMITTING A COMPLAINT
What format should be followed?
There is no prescribed format that you must follow in setting out your complaint. It is, however, important that all the required information is set out clearly and systematically, as if you are telling the story for the very first time.
What is the cost of lodging a complaint?
The services of the office of the Pensions Funds Adjudicator are free to members of the public, nor are you required to be represented by a lawyer.
What information should I include in my complaint?
REMEMBER : You must complain in writing to the fund or employer concerned at least 30 days before you can lodge your complaint with the Adjudicator. When you submit your complaint to the Pension Funds Adjudicator, please ensure that all the following information is included. (Items marked * are only required if relevant to the complaint) Your Details (the complainant) Name ID Number Address Phone Number Fax Number (optional) E-mail address (optional) Are you a Member or a Beneficiary or Other Complainant? (please state) (If you are a beneficiary, please give the name of the member whose beneficiary you are).
Employment Details Full Name and Address of Employer Phone Number Fax Number (optional) E-mail address (optional) When Employed Date From …. To …. (if still employed there, please state) Details of Fund Name of Fund Address Name of Principal Officer (if known) Phone Number Fax Number (optional) E-mail address (optional) Type of Fund Pension Fund, Provident Fund, Preservation Fund, Retirement Annuity Fund, or other (please state) Please enclose Proof of sending complaint to Fund/Employer Copy of complaint letter sent Copy of any reply received Copy of relevant documents eg *membership certificate *benefit statement *payslip showing pension deductions *documents concerning the complaint *other correspondence with fund/employer.
Please remember to give full but concise details of your complaint, and tell the Adjudicator what you would like him to do to rectify the situation. When you send your complaint to the Adjudicator, also send an identical copy to the respondents, so that they know you have lodged a complaint with us and can see exactly what the complaint says.
PROCEDURE
What happens to your complaint when the Adjudicator has received it?
On receipt of your complaint it will be registered and allocated a reference number
The complaint will also be assessed to determine whether or not the Pension Funds Adjudicator has jurisdiction (legal mandate) to adjudicate the type of issues.
If the adjudicator has no jurisdiction you will be informed by a letter referring you to the correct entity where your complaint can be addressed.
Should the matter fall within the jurisdiction of the Pension Funds Adjudicator, the complaint shall be forwarded to the party or parties against who the complaint is raised to respond within 30 days.
On receipt of the response the complainant shall be granted an opportunity to comment on the response by submitting a reply letter.
At this point an assessment shall be conducted to determine whether the dispute can be resolved through a conciliation hearing with an independent conciliator, if so, it shall be allocated for a conciliation hearing and the parties shall be according informed by a letter.
If the conciliation is not successful or the dispute is not suitable for a conciliation it shall be forwarded to the adjudication team for an investigation on the factual and legal issues as contained in the submitted documents.
A draft document with the findings and recommendations shall be forwarded to the Adjudicator or deputy adjudicator to make a ruling. That is, to issue a determination.
The signed determination with reasons is sent to the parties.
Any party who feels that the determination is not in accordance with the law can approach the High Court with a formal application to have the determination reviewed.
TWO-POT SYSTEM
What is the Two-Pot retirement system?
The two-pot system will split your future retirement savings into two pots.
- Savings pot: For one-third of your future savings from which you can withdraw once in a tax year without leaving your job or the fund.
- Retirement pot: For two-thirds of your future retirement savings that must be preserved until retirement and 100% used to buy a pension.
Although it is called the two-pot system, there will be a third pot as well.
- Vested pot: This pot will be made up of all your savings up to 31 August 2024 and you will still have access to it if you resign from your fund. No further contributions can be allocated to it.
How will the savings pot be seeded from my existing retirement savings?
On the implementation date, 10% of the market value in your account on 31 August 2024, subject to a maximum of R30 000, will be seeded from your vested component to your savings component
How much will the two-pot system allow me to withdraw?
Retirement fund members in eligible funds will be able to withdraw from the savings pot of their retirement fund on or after 1 September 2024 without leaving their job.
The minimum withdrawal amount is R2 000.
Your withdrawal may be denied in certain limited circumstances such as:
- A court order stating you cannot be paid your benefit;
- Your employer has a judgment against you stating that you owe damages;
- You are getting divorced;
- You owe maintenance; or
- You have a housing loan guaranteed by your fund.
Is my withdrawal taxable?
Withdrawals from your savings component are taxed at your marginal tax rate which is the highest rate of tax that applies to you according to the personal income tax table. You will receive the after-tax amount, less any amounts owing to SARS and minus fund admin costs.
Such payment may push you into a higher tax bracket for the year of assessment
Which Retirement funds will fall under the Two-pot system?
Applicable to:
- Pension funds, provident funds, preservations funds and retirement annuity funds
- Defined benefit funds
- Public sector funds
Which type of Retirement Funds will NOT be affected by the Two-pot system?
Unclaimed benefit funds
Annuity payments
Beneficiary funds
Legacy Retirement Annuity Funds on application
Terminating funds and funds in liquidation
Which member categories will NOT be affected by the Two-pot system?
Pensioners
Provident fund members who were 55 or older on 1 March 2021, and who remained in the same fund are excluded unless they opt in. These members can choose to take their full benefits or purchase an annuity at retirement
Can any money be deducted from my retirement savings?
If you are a member of a retirement fund and your savings remain in your fund they are protected and your creditors cannot attach them, except in exceptional circumstances.
There are only a few instances where money can be deducted from your savings:
- If you default on a pension-backed home loan which records your savings as security for the loan.
- If you share your retirement savings with a former spouse on divorce.
- If you fail to comply with an order for maintenance for your child or children or former spouse it is enforced.
When you leave an employer, certain deductions can be made from your savings for:
- Tax you owe;
- Maintenance you have failed to pay;
- Divorce awards;
- Compensation owed to your employer if you have committed fraud or been dishonest, if certain conditions are met.
Does withdrawing from the savings pot affect my cash lump sum at retirement?
The two-pot system gives you early access to the cash lump sum you can take at retirement.
If you access it before retirement, you may have less or nothing to take in cash at retirement.
If you access your cash lump sum before retirement, you may reduce or lose the tax benefit you could enjoy at retirement.
How will the two-pot system work in defined benefit funds?
Defined benefit funds will be part of the two-pot system.
The benefits you accumulate from 1 September 2024 will be split between the two pots using your years of pensionable service.
Your savings pot will be seeded with 10 percent of the value of your benefit as at 31 August 2024 up to R30 000, and the years of service used to determine the value of your vested savings (made before 1 September 2024) will be reduced accordingly.
What can I withdraw from each pot when I leave employment and the fund?
If you resign or lose your job, you will still be able to withdraw from your employer-sponsored fund any savings you made before 1 September 2024 (your vested pot).
If you already made a withdrawal in the tax year in which you lost your job, you will also be able to withdraw what is in your savings pot if it is less than R2 000.
Currently you will not be able to withdraw the money you have saved in your retirement pot after 1 September 2024.
Legislation may be introduced in the future to give people who are retrenched and have exhausted their savings pot access to their retirement pot, but currently they can only access their vested savings.
Head Office
012 748 4000
012 346 1738
Fax: 086 693 7472
Office Hours
Monday – Thursday: 8:00 – 17:00
Friday: 8:00 – 16:30