Thousands of security guards in the country are frustrated by how their pension funds are still held by security companies they have worked for, a year after the Financial Sector Conduct Authority (FSCA) published a list of defaulting employers.
More than 2 000 security firms were outed by the FSCA as employers that had not contributed a pension fund for their employees to the Private Security Sector Provident Fund (PSSPF) last year.
This act has brought frustrations to the guards, who are now seeking assistance to institute a class action against the companies they worked for as they believe that they are being taken for a ride.
“We have been working for these companies, risking our lives while earning peanuts. These companies have been deducting our money under the false pretence that our contributions were put in our pension fund, but that was not true.
“We have been made fools that our money deducted every month was contributed to PSSPF and that we would get it when we retire or get retrenched by the companies we worked for, but that has been absolute nonsense we have been told,” said
Mandla Mabuza.
Another former security guard who asked not to be named told Sunday World that it was disheartening that he had to struggle to get his pension fund that he contributed to for 20 years.
“I am not in a good state at all as I believed that the money that had been deducted for 20 years as my pension fund is nowhere to be found. What did the company do with my money which I worked hard for? It is wrong that I should be the one chasing after the money that was deducted by the company I worked for. I had hoped that I would put the pension fund into good use by starting a small business, but I have nothing. This is truly sad and annoying,” said the former guard.
Mike Mnisi also said that he did not understand why he had to find himself in such a situation where he could not access his pension, which he said was his life savings for his retirement.
“My family is struggling to make ends meet and what is sad is that I can’t provide for them because I am now unemployed. I worked as a security guard for 17 years and I hoped that I would use my pension to uplift my family through opening a small business that would bring income, but I am struggling to get my money,” said Mnisi.
Among thousands of guards who struggle to get their pension, Dikeledi Gopane told Sunday World that she felt betrayed by the company she worked for the past 15 years.
“I have kids to take care of and I live in a shack while trying to fend for my family to survive. However, I don’t know what else I should do to get my pension because the company that I worked for is sending me from pillar to post,” she said.
Daisy Dlamini, who is also a former guard, said that she and others who worked in the security industry would be grateful if there could be any lawyers who could help them to institute a class action against all the security companies owing employees their pension funds.
“We are crying for help, and we would appreciate getting any legal assistance from any lawyers who can take up our plight and institute class action against these companies which had ripped us off,” she said.
PSSPF principal executive officer Dumisa Hlatshwayo denied they had failed to pay the pension funds of security guards. He said the employers did not adhere to the pension funds requirements to pay over the employer portion and employee portion of the Provident Fund contributions.
“This is the only reason that the fund could not pay anything to the security guards, because there would be no contributions of money received from the respective employers, which would have been invested wisely on behalf of security guards. Again, where there are no contribution payments received by the fund from the employers. The fund will not be able to pay any benefits to members in that regard,” said Hlatshwayo.
He added that affected employees would not be paid anything because the employers would not have paid anything on the employees’ behalf into the fund.
“The PSSPF does not withhold any pensions due to any of its members but if the employers had not paid any contributions for their employees, the PSSPF cannot pay what it did not receive,” said Hlatshwayo.
Psira spokesperson Brian Mulaudzi said it acknowledges the serious concerns raised regarding the non-payment of pension funds to security officers.
“This situation is unacceptable, [it] goes against the principles of fairness and justice that we uphold, and has the potential to disrupt national security. According to the Pensions Fund Act, the responsibility for managing and ensuring the payment of pension funds to security officers lies with the Private Security Sector Provided Fund. However, it appears that the fund may lack the necessary capacity and independence to enforce the Main Collective Agreement effectively.
This shortfall has resulted in a situation where security officers are left without their rightful benefits, as evidenced by records showing that companies have been allowed to default on payments for up to five years without action being taken, as per the FSCA website,” he said.
He added that the fact that there is a list of over 2000 non-compliant companies suggest a potential lack of competence and raises concerns about the adequacy of oversight.
