FSCA Publishes Updated List of Employers in Arrears with Retirement Fund Contributions

Posted 29 July 2026 Written by Acts Online
Category Retirement Funds & Compliance

Brought to you by SA Accounting Academy: The Financial Sector Conduct Authority (FSCA) has published an updated list of defaulting participating employers to address persistent non-compliance under section 13A of the Pension Funds Act, No. 24 of 1956.

In terms of section 13A(1) of the Pension Funds Act, No. 24 of 1956, an employer must pay employee retirement deductions and employer contributions to the fund no later than seven days after the end of the month for which the contributions are due. Failure to transmit these funds timeously constitutes a statutory contravention and a criminal offence under section 37(1)(a) of the Act.

Key statutory obligations and enforcement mechanisms

The publication forms part of the FSCA’s regulatory strategy to enforce compliance, protect fund beneficiaries, and hold accountable those responsible for unpaid retirement contributions. Key provisions under the statutory framework include:

  • Payment deadlines: Section 13A(3)(a)(i) requires contributions to be remitted directly to the fund account within seven days post month-end.
  • Penalty interest: Section 13A(7) prescribes that compound interest is automatically payable by defaulting employers on overdue payments at the prescribed rate.
  • Personal liability: Section 13A(8) imposes personal liability on directors, members of close corporations, and individuals responsible for managing employer financial affairs where contribution defaults occur.
  • Criminal prosecution: Conviction under section 37(1)(a) carries penalties of up to R10 million in fines, imprisonment for up to 10 years, or both.

Fund boards and principal officers are bound under FSCA directives and Conduct Standard 1 of 2019 to report non-paying employers to the South African Police Service (SAPS) and notify affected employees within strict statutory timeframes.

Click here to view official updates on the FSCA official portal.

What this means for you, your business, or your clients

  • For yourself: Verify monthly pension or provident fund benefit statements against payslips to confirm that deducted contributions have been remitted to the fund by the employer within seven days of month-end.
  • For your business: Audit payroll payment processing workflows immediately to ensure exact adherence to the seven-day payment window, thereby avoiding statutory compound interest under section 13A(7) and mitigating personal director liability risks under section 13A(8) of the Pension Funds Act, No. 24 of 1956.
  • For your clients: Advise non-compliant employer clients to immediately execute a catch-up payment schedule, calculate required late payment interest, and engage fund principal officers to prevent public listing and formal criminal reporting to SAPS.

Originally published at https://accountingacademy.co.za/news/read/fsca-list-of-employers-in-arrears-with-rf-contributions

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