Guiding consumers since 2009

Chemical Industries National Provident Fund probed for maladministration

By Staff Writer
There have been 71 complaints filed against the Chemical Industries National Provident Fund, which has led to a request that the Registrar of Pension Funds investigates the fund for maladministration. Of the complaints filed, 34 have been dealt with, while the remaining 37 are being processed.
 
Complainants accuse Chemical Industries National Provident Fund of not transferring fund benefits for members of the fund when they requested it. The probe by the Registrar of Pension Funds follows after LL Barlow from Port Elizabeth laid a complaint against the Chemical Industries National Provident Fund with the Office of the Pension Funds Adjudicator, for the fund's failure to transfer his fund benefits to the Aspen Provident Fund.
 
The procedures for the transfer never took place, and the procedures needed to carry out the transfer were never carried out.
 
After receiving a request for the transfer of fund benefits, the board of the fund must actively communicate with the members involved to ensure that the transfer is reasonable and equitable. The Chemical Industries National Provident was not able to make a decision regarding the transfer of Barlow's funds, as it has been stated that the board did not receiving the necessary documentation.
 
The Pension Funds Adjudicator Muvhango Lukhaimane, has said that once a request for transfer of fund benefits by a member to another fund, the two funds need to follow the required administrative processes, as well as ensure that the Registrar receive the relevant information to make a decision about the reasonableness of the transfer.
 
Lukhaimane said: "In light of the number of complaints received by this Tribunal in respect of the first respondent [the Chemical Industries National Provident Fund] relating to the transfers in terms of section 14 of the [Pension Funds] Act, this complaint will referred to the Registrar, requesting her urgent intervention as this conduct amounts to maladministration."

Recent Articles

Featured What’s the deal with underwriting?

When you apply for a long-term insurance policy, a financial adviser will ask some personal questions about your lifestyle, family history, health, and even ask you to take some medical tests. This process is called underwriting, but is it really necessary?

 

How are you taxed on your retrenchment package?

Unemployment is one of the biggest problems in South Africa. The emergence of the Covid-19 pandemic has exacerbated the situation with a lot of companies retrenching their employees.  When retrenched, you’ll receive a retrenchment package, but do you know how much tax you’re liable for?

Car repossessed – don’t be taken for a ride

When the country is facing an economic downturn, chances are your finances will feel the pinch. This can lead you to make bad financial decisions such as skipping your vehicle payments. But every decision has consequences and if you don’t pay your instalment, the bank will repossess your car. But what can you do when this happens?

 

Why you should consider gap cover

Your medical aid should protect you from incurring large medical bills when you’re sick. But what if your plan doesn’t cover the full cost of your medical expenses? We got in touch with insurance experts to find out whether gap cover is worth having.

Deals

Office furniture at discounted prices at BDK

Price: Available on request
When: Daily
Where: Johannesburg

Da Vincis Happy Hour Special

Price: Available on request
When: Daily
Where: Cape Town

Use your Absa card and get 30% cashback at Dis-chem

Price: Available on request
When: Daily
Where: Nationwide


Latest Guide

Guide to debt rehabilitation solutions