The Financial Sector Conduct Authority (FSCA) has raised a critical alarm over a troubling trend in South Africa’s pension fund landscape. The authority has observed a significant surge in employers failing to meet their legal obligations to invest pension contributions for their workers, a situation that jeopardises the financial security of countless employees.
As of March 2025, the FSCA reported that over 15,500 non-compliant employers collectively owe more than R7.29 billion in outstanding contributions across approximately 67 retirement funds nationwide. This staggering figure underscores the grave implications of non-compliance, impacting individuals who rely on these funds for their retirement.
“The scale and seriousness of this problem cannot be overstated,” said FSCA Commissioner Unathi Kamlana. “It reflects a systemic issue that requires persistent vigilance, rigorous enforcement, and strong collaboration with law enforcement agencies to hold these employers accountable.”
Industries that have been particularly notorious for non-compliance include the motor vehicle sector, private security, transport, and various municipal entities. The failure to comply with Section 13A of the Pension Fund Act not only undermines the financial futures of countless workers but also erodes public trust in the financial sector’s regulatory systems.
Kamlana emphasised that the FSCA is committed to addressing this pressing issue through rigorous monitoring and proactive engagement with detected non-compliant entities. The authority’s strategy is twofold: ensuring that employers fulfil their legal obligations while also safeguarding the interests of employees whose livelihoods depend on adequate pension funding.
This alarming trend raises pressing concerns about the long-term cardiovascular health of South Africa’s pension system and poses a significant challenge for regulators who must navigate between enforcing compliance and supporting struggling employers in a struggling economy.
While the collective arrears are concerning, they also serve as a beacon for necessary reforms and strategic interventions aimed at protecting employee rights and assuring their financial futures. As the FSCA intensifies its efforts, the spotlight is on employers to step up and honour their commitments—ensuring a viable and secure retirement for all workers.