FSCA: List of employers in arrears with RF contributions

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FSCA: List of employers in arrears with RF contributions

• 29 July 2026
• Miscellaneous
• South African Accounting Academy

Summary:
The Financial Sector Conduct Authority (FSCA) has published FSCA Communication 12 of 2026 (RF): Publication of the names of retirement funds and employers with arrear contributions. 

(Not all of the names, ‘just’ the top ±6 064 transgressors that are in arrears by R50 000 and/or are more than 5 months in arrears)

Article:

The FSCA said its “naming and shaming” of delinquent employers is an important tool for holding them accountable to their employees and holding funds accountable to their members. 

The Communication names 6 064 employers reported to the FSCA as having contravened section 13A of the Pension Funds Act, No. 24 of 1956 (PFA). This section sets out, among other things, the requirements for the payment of contributions to retirement funds.

The Communication is the fifth in a series of publications that commenced in June 2022, with the intention of promoting transparency, alerting affected members and stakeholders, and encouraging employers and pension funds to address outstanding contributions timeously. This is critical in supporting the FSCA’s ongoing efforts to protect retirement fund members and promote regulatory compliance across the sector.

Employers reported over the preceding periods has more than tripled increasing from 23 funds and 5 430 employers in April 2023 to 75 funds and 16 556 employers as at 28 February 2026. Of these, the names of 6 064 defaulting employers have been included in the Communication, based on the severity and duration of the reported arrears

Total arrears are estimated to be R8.33 billion, affecting approximately 590 000 retirement fund members. This represents an increase of R1.04 billion (14.2%) from the R7.29 billion reported as at 31 March 2025. Notably, late payment interest now accounts for 43.5% of total arrears.

Current data suggests that the severity of arrears is increasing, with late payment interest increasing by 21.5%, compared with a 9% increase in the capital portion of arrears. This indicates that outstanding contributions are remaining unpaid for longer periods and continuing to accumulate interest. 

Entities participating in local government funds account for 21.5% of total arrears, while those participating in bargaining council funds contribute 76.9%. Arrears by municipalities in the North-West and Free State provinces remain the most significant within the local government sector, collectively accounting for 79.4% of all municipal arrears.

Since the FSCA’s first publication of defaulting employers, total recoveries are reported to have reached R1.01 billion, representing approximately 12.1% of the estimated arrears. More than 200 employer records have moved into a more favourable compliance position since the previous publication in September 2025. This includes full or partial settlement of arrears, settlement arrangements, or voluntary termination following business closure.

In the local government sector specifically, interventions by the National Treasury to withhold equitable share allocations from persistently non-compliant municipalities have begun to improve the regularity of contribution payments. This underscores the value of continued inter-agency collaboration in addressing arrear contributions and protecting retirement fund members.

Access the pack containing the following documents at https://www.fsca.co.za/_api/cr3ad_regulatoryframes(a033f4e6-e375-f111-ab0e-000d3a64ff8b)/cr3ad_document/$value? 

• FSCA Communication 12 of 2026(RF) (3 pages)
• Annexure A – List of participating employers in contravention of section 13A of the PFA (351 pages)
• Annexure B – Action after previous publication: List of employers that have paid, or made payment arrangements, since previous (8 pages)
• Annexure C – Erratum: List of employers who were included in FSCA Communication 18 of 2025 (RF) erroneously (RF) (1 page)

Click here to download the FSCA summative Press Release:

https://www.fsca.co.za/_api/cr3ad_newses(fec138d4-e975-f111-ab0e-000d3a64fb06)/cr3ad_document/$value 

Relevance to Auditors, Independent Reviewers & Accountants:

• The Pension Funds Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with.  If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
• Auditors, independent reviewers and accountants must ensure that they are aware of the latest news that is published by regulators, such as the FSCA.
• As an employer, you have an obligation to ensure that retirement fund contributions are paid over to the relevant authority, otherwise it could be construed as theft.

Relevance to Your clients:

• An employer has an obligation to ensure that retirement fund contributions are paid over to the relevant authority, otherwise it could be construed as theft, and the employer could be held liable.
• Relevant financial institutions must ensure that they are aware of the latest news that is published by regulators, such as the FSCA.

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