South Africa’s Pension Funds Act caters for unforeseeable events such as the nationwide lockdown currently underway, to assist employers or individuals who may be experiencing financial difficulty because of lack of income.
Experts say individuals and companies need to cut costs wherever possible including pension fund contributions, to meet urgent needed to prevent defaults on contractual payments.
The Pension Funds Act caters for situations where employees are temporarily absent from work, where employers need to downwardly adjust – or reduce – staff members’ salaries, or even cease or reduce company or member contribution levels during this uncertain time.