Regulator Sounds Alarm Over South Africa’s $288 Million Pension Contribution Arrears
- Employers’ unpaid pension contributions stand at $288 million
- If they rise further, it may destabilize retirement ecosystem
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The failure by South African employers to pay 5.2 billion rand ($287 million) in pension contributions may leave retirees facing poverty, and the retirement system may be destabilized if the problem continues to worsen, the head of the financial regulator said.
Currently 7,770 employers have failed to make pension contributions deducted from workers’ salaries, including almost 150 local-government authorities, whose arrears are estimated at about 1.4 billion rand, Financial Sector Conduct Authority Commissioner Unathi Kamlana said in a speech Tuesday.