More than 150 privately-administered pension and provident funds have failed to submit their audited financial statements to the Registrar of Pensions as required by law.
An alarming 153 funds, or eight percent of the funds, had not submitted their statements for the 1995 financial year at the extended deadline of March 17, last year.
Even more serious is that two percent (45) of funds have been negligent in sending in their financial statements for 1994.
Andre Swanepoel, deputy registrar of pensions, urges pension and provident fund members to check with the trustees of their funds whether audited statements have been submitted.
"It could be an indication that there is something wrong," he says.
Financial statements for a particular year are due six months after the close of the financial year of the pension or provident fund.
The Financial Services Board has been lenient enough to allow funds who had not submitted their statements by the required date, a further eight months, until March 17, 1998, to do so.
In his latest report Rick Cottrell, registrar of pension funds, says he is concerned at the failure of pension funds to submit the prescribed returns by the due date and the inability of the courts to prosecute the offenders promptly.
"This office will apply stringent criteria when granting extensions for the late submission of the prescribed returns."
Cottrell has warned errant funds that the Financial Services Board will promptly inspect funds whose returns are in arrears to determine whether or not abuse is occurring.
Swanepoel says funds are fined R10 a day for every day that their financial statements are outstanding.
So a fund which has not yet submitted its audited statements for the 1995 financial year can expect to pay a penalty of at least R5 400 up to the end of last month.
This is quite a waste considering the trustees are supposed to be looking after your hard-earned pension money to the best of their ability.
With the retirement industry undergoing major change at present, individuals are going to have to take greater responsibility and keep an eye on their funds.