The United National Transport Union (UNTU) finds its totally unacceptable that the Passenger Rail Agency of South Africa (Prasa) has not yet transferred the pension fund contributions of employees working for Metrorail, a division of Prasa, to the Transnet Retirement Fund (TRF).
Steve Harris, General Secretary of UNTU, says the R11 million in contributions were deducted from the salaries of employees by Prasa at the end of February 2020.
“Section 13A of the Pension Funds Act (PFA) requires that employers pay contributions for a particular month within seven days after month-end, that they provide member schedules in respect of contribution payments to the fund and that compound interest is paid on late contributions,“ says Harris.
This means that Prasa will now have to pay a penalty to the fund for the late payment of pension money that were deducted timeously from its employees.
UNTU has repeatedly asked Mr Bongisizwe Mpondo, Administrator of Prasa, about the outstanding payment after it was brought to the attention of the Union on 17 March 2020 by a broker.
“This is not only a contravention of the Act, but it is also a criminal offence to deduct money from employees, but not to transfer the money to the institution in who’s name it was deducted.
“If the money is not paid immediately, UNTU will have no alternative to use every means possible to force Prasa to transfer the money,” says Harris.
Issued on behalf of UNTU by Sonja Carstens, Deputy-General Secretary: Media, Liaison and Communication. For UNTU press releases phone Sonja on 082 463 6806 or e-mail sonja@untu.co.za.
