TimesLive reports that staff at state-owned arms manufacturer Denel learned on Tuesday that the company has paid their salaries, but not their pension contributions. In a letter sent out by the “Denel retirement fund”, the fund said workers would not be able to claim benefits as monthly payments were not up to date. It read: “Section 13A of the Pension Funds Act is unambiguous in that any employer must effect payment of members’ contributions to the fund before the 7th day of the month following the month for which it is due.”
Following this, minister of public enterprises Pravin Gordhan announced a “lender” had enabled the arms manufacturer to pay the rest of the staff salaries. But on Tuesday afternoon, it became clear that none of the pension contributions for June had paid. Pension contributions are commonly between 12- 19% of about a salary. The Alexander Forbes 2018 Market Watch report showed that the average pension fund contribution for the employers it represents (not Denel) is about 14.11% of an average salary. Denel’s spokesperson Pam Malinda promised to comment on Tuesday evening, but had not done so by the time of publication.
by Katharine Child