Adjudicator criticises pension fund for ignoring complaints

THE Office of the Pension Funds Adjudicator (OPFA) has come down hard on the South African Local Authorities Pension Fund for ignoring repeated requests for information, in what it describes as serious non-compliance with regulatory obligations.

- DIEKETSENG MALEKE

Adjudicator Muvhango Lukhaimane reported the fund to the Financial Services Conduct Authority (FSCA) after it failed to respond to multiple enquiries from her office in the course of investigating a complaint.

“There were several complaints against the fund,” Lukhaimane says. “And the lack of response from the fund reflects a disregard for the Pension Funds Act, its rules, and the best interests of members.”

The complaint in question was brought by a former South African Police Service employee who believed his withdrawal benefit had been improperly calculated. He asked the OPFA to determine whether his employer had consistently paid overall contributions to the fund, a factor that would directly affect the value of his benefit.