Two-Pot system drives surge in pension complaints, adjudicator warns of rising trend

THE Office of the Pension Funds Adjudicator (OPFA) has reported a sharp rise in pension-related complaints during the 2024/25 financial year, largely linked to the rollout of the new Two-Pot retirement system introduced in September 2024.

- YOGASHEN PILLAY

MUVHANGO Lukhaimane, the Pension Funds Adjudicator. SUPPLIED

(SUPPLIED)

According to the OPFA's latest annual report, released on Sunday, the number of new complaints increased by 13% year-on-year to 10 331, compared to 9 177 in the previous period. Of these, the office managed to resolve 10 100 cases.

The report noted that 239 complaints were directly related to the twopot system in the first seven months of its implementation. The system allows retirement fund members to access part of their savings without resigning from their jobs - a reform designed to provide financial flexibility to workers.

However, the OPFA said many funds underestimated the volume of withdrawal applications, leading to processing delays. In some cases, funds were unable to pay claims because employers were in arrears with their contribution payments.

"Funds received a significant number of two-pot withdrawal applications from members," the report stated. "However, there were processing delays as some funds underestimated the uptake, whilst others could not pay claims because employers owed arrear contributions."