- The adjudicator confirms that all provident fund contributions from February 2018 to November 2023 were paid, dismissing part of the complaint.
- The fund acted against its rules by processing a withdrawal without the employee’s instruction, breaching its duty to act in good faith.
- The employee must make an election for the benefit, and the fund is to work with SARS for a revised tax directive and transfer the full fund credit.
TK Thooe, a former Pick n Pay employee, discovered that part of his retirement savings had been paid out without his consent.
On 2 February 2025, the SACCAWU National Provident Fund paid him R23 322.36 as a withdrawal benefit while transferring R30 000 into a retirement annuity. Thooe had requested that his full fund be transferred into an Easy Equities annuity account to avoid taxes.
Thooe filed a complaint with the Pension Funds Adjudicator (PFA) in October 2024, highlighting the unauthorised payment and queries about his provident fund contributions.
Employer contributions confirmed, deductions reduce payout
The adjudicator, MA Lukhaimane, confirmed that Pick n Pay paid all contributions on behalf of Thooe from February 2018 to November 2023. “The Adjudicator finds that all contributions were paid on behalf of the complainant according to the fund’s rules, and there are no further benefits due,” Lukhaimane said.
Thooe’s fund credit was reduced by a maintenance order and tax directive. The fund deducted R5 700 for the maintenance order and R5 824.54 for taxes, explaining why the withdrawal and annuity payments did not match the total balance of R59 858.57.
The Adjudicator noted that the fund could not provide evidence, such as a phone recording or signed withdrawal form, to confirm that Thooe had requested the withdrawal. This constituted a breach of Rule 10.3, which governs member elections for withdrawals.
PFA directs corrective action
Thooe is required to make his election regarding the retirement benefit within three weeks. If he chooses to transfer the funds to a pension fund, provident fund, retirement annuity, or preservation fund, he must repay the amount already received.
The fund must work with SARS to reverse the existing tax directive and issue a revised directive based on Thooe’s election. Once the revised directive is received, the full fund credit must be transferred to his chosen account, and a detailed breakdown of the payment must be provided.
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