Altech accepts Arrow proposa...
Foreign troops invade SA banking secto...
Shackles of exchange control could fall ...
Soothing investor brows against October ...
Business Times Story...
Fanta pops lid on new-look packag...
Knowing how to choose your unit trust fu...
Delivering the goods on tim...
Investing overseas need not be a precari...
Why SA investors have been slow to send ...
Check your pension fund's rules on early...
Grab at the opportunity to invest offsho...
Pension funds are protected from pani...
High risk, high return from banking sect...
Make saving a way of lif...
Trade surplus enhances indicator...
UNIT TRUSTS:UNIT TRUSTS: Southern Manage...
Back To Home Page
Pension funds are protected from panic
By LEIGH ROBERTS
SO YOUR employer has gone under and on top of the problems of finding a new job, there is the added worry of what's happened to your money in the company's pension or provident fund.
Firstly, don't panic. The assets of your retirement fund are separate from those of the company. If the company closes down, the fund's assets can't be used to pay company debts.
If the company is liquidated, the retirement fund is not automatically liquidated - although this often happens.
The next issue is when you will receive the money if the fund is liquidated? According to Alan McCulloch of Liberty Life's marketing retirement funds division, there is a lengthy procedure to be followed in terms of the Pension Funds Act. It is quite likely there could be a delay of up to six months, which causes much angst to fund members. But such procedures were introduced to ensure liquidations were finalised in a proper and effective manner, and that every member's interest is protected.
As soon as a fund goes into liquidation:
A liquidator has to be appointed and then approved by the registrar of pension funds;
The liquidator has to lodge with the registrar a set of accounts and a plan to liquidate assets and pay members;
These accounts have to lie open for inspection for 30 days at the registrar's office in the area where the fund's address is registered;
A notice must be published in the Government Gazette and in the English and Afrikaans newspapers circulating in the district, allowing 14 days for objections.
Once these procedures have been complied with, the registrar will give the go-ahead for the liquidation to be finalised.
McCulloch says there is little that can be done to speed up the process from a regulatory perspective. All fund members can do is ensure the liquidator has all the administrative details at the earliest time.
If you do find yourself in this unfortunate situation, here's what you should find out:
Who the liquidator of your fund is. This person is there to protect your interests in the fund and will advise you of the status of the liquidation process as well as what remains to be finalised.
The liquidator cannot finalise the accounts unless every member has supplied the following information:
Residential and postal address;
Income tax reference number.
Network and stay in contact with the other members of the fund, so that anyone who may not have provided this information does so as soon as possible.
You have the right to object to the liquidator's account once it is open for inspection. Find out when it is to be advertised, where it will be available, and the procedure for lodging any objection. Make sure you are not too late to submit one.
While you are waiting for a payout, consult your financial adviser for guidance on where to invest the proceeds. Bear in mind that any cash payment will be taxed. You should preserve the fund benefits for your eventual retirement by storing the money in a retirement annuity or a preservation fund.
Remember that if a company goes into liquidation, your life and disability cover will terminate, so you need to make other arrangements.
Top of page
Home Page |
BT Money |
News Maker |
Money Guides |
Labour Guides |
E-Mail us |