Workers often leave employment unaware that they have pension benefits owing to them, says Tiaan Kotze, managing executive of Liberty Corporate.
More than half the unclaimed benefits of R42 billion owed to roughly 4.2 million former workers are bottled up in just two trade union-affiliated pension schemes.
GroundUp asked for comment on the Open Secrets report from the regulator, the FSCA, and two administrators, Liberty and Alexander Forbes. Only Liberty responded. “Our experience with the trade union-administered funds has been frustrating for many claimants. We have done searches on behalf of former members that show they are entitled to benefits, yet when they then approach the administrators directly, they are told there is no record of them on file.”
Administrators charge up to R12 per member per month – or R144 per year. Liberty charges R10 per member per month for administration, and 0.6% annually on long-term funds invested. By way of comparison, a typical fee on a commercially available retirement annuity is between R60 and R80 a month for administration, and 1% annually to the manager who invests the funds.
Kotze says Liberty has more than 50 people in the company working full time at tracing beneficiaries in old funds and getting benefits paid to members. The company also uses the services of outside tracing agents.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
JSE could be subdued on Tuesday despite trade war optimismPositive signs in the US-China dispute lift sentiment, though the local bourse faces subdued Asian markets and a weaker Tencent
Read more »
Gold slips to one-week low on optimism about US-China trade deal‘The threat of a full escalation to a trade war, with bans and boycotts, is off the radar screen for the moment,’ analyst Carsten Menke says
Read more »
Global equities slightly stronger amid hope of a trade dealShares rise as investors hold out for some progress in US-China talks, while the dollar dips after its latest data-inspired rally
Read more »
Asian shares edge up on hopes over trade dealOutperformance of US economic data gives the dollar a leg up on its peers
Read more »
Gold slips amid hope of a trade dealOptimism is sending global equities higher, and capital is fleeing away from safe havens into risk assets, analyst says
Read more »
Oil begins new week with gains as focus remains on tradeWest Texas Intermediate crude rose 0.17% to $57.87 a barrel, having ended last week little changed
Read more »