The Pension Funds Act, 1956 (“PFA”) is the primary legislation regulating retirement funds. Section 30A of the PFA provides that any person who has a complaint as defined in section 1 “may lodge a written complaint with the retirement fund for consideration by the board, which must be properly considered and responded
Ntokozo Ngubane
Pension Funds: Section 37D(1)(b)(ii) and Employer requests to withhold member benefits
By Ntokozo Ngubane & Michelle David on
In February 2021, the Financial Services Tribunal (“FST”) in L.S Ngqengelele v Afrisam South Africa (Pty) Ltd considered the question of when a fund may withhold and deduct money from a member’s benefit in accordance with section 37D(1)(b)(ii) of the Pension Funds Act (“PFA”).
Section 37D(1)(b)(ii) of the PFA, allows a fund to deduct from…
Amendments to the Financial Sector Regulations published
By Ntokozo Ngubane & Michelle David on
The Minister of Finance, has published amendments to the Financial Sector Regulations under Gazette 43581 intended to simplify the process of appointing the Commissioner and Deputy Commissioner of the Financial Sector Conduct Authority (FSCA).
The amendments provide that:
- The Minister must re-appoint a shortlisting panel (two panellists being the Deputy Govrnor of the South African
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Jurisdiction of the Financial Services Tribunal: medical scheme matters
By Ntokozo Ngubane on
A medical scheme aggrieved by a decision of the Registrar for Medical Schemes must appeal to the Council for Medical Schemes and not the Financial Services Tribunal, even if the decision relates, broadly, to financial sector laws.
In Medihelp Medical Scheme v The Registrar for Medical Schemes and Another, the Council for Medical Schemes,…
COVID-19 and the potential use of medical scheme reserves
By Ntokozo Ngubane & Michelle David on
Medical scheme trustees cannot take a business as usual approach during the COVID-19 pandemic. Boards should be giving thought to the value of their reserves and whether using such reserves would be of benefit to members. At a minimum, trustees need to understand the options available to them when considering using scheme reserves.
In terms…