Municipalities that deduct workers' pension contributions but fail to pay them into the relevant retirement funds may find themselves in hot water, as investigations into this matter are currently underway by the relevant authorities.

Approximately one hundred municipalities in South Africa (SA) are alleged to have deducted workers' pension contributions from their salaries but failed to transfer the funds to the respective pension or retirement funds. As a result, workers in the affected municipalities were unable to access benefits from the two-pot pension system last September.

To help us understand this issue further, Thami Ngubeni spoke to Naheem Essop, the Deputy Pension Funds Adjudicator.