The Financial Sector Conduct Authority FSCA has revealed that over 2 000 security firms in South Africa are defaulting on pension contributions.
Workers in the security sector have held several protest marches, in a bid to compel their employers to make contributions on their behalf, to the Private Security Sector Provident Fund.
Failure for the employees to do so leaves workers without adequate retirement provisions.
The funds Principal Executive Officer Dumisa Hlatshwayo says its something that has gone on for the longest time because what happens is that the security companies that are out there, quite a lot of them get tenders from the government and its a systemic issue somehow.
Because they get tenders from the government and then the payments that come through to them sometimes do not come through at the right time for them to be able to be compliant with the payment of retirement benefits for members. So, the companies themselves dont have the actual cash at the time to be able to pay into the fund on behalf of members and what happens is then they become non-compliant.
