Can any Person other than the Employer Apply for the Deduction of Members’ Retirement Benefits Based on Misconduct and Dishonesty?
Can any Person other than the Employer Apply for the Deduction of Members’ Retirement Benefits Based on Misconduct and Dishonesty?
Author Clement Marumoagae
ISSN: 2413-9874
Affiliations: Pupil Advocate at Johannesburg Bar
Source: Industrial Law Journal, Volume 47 Issue 3, 2026, p. 1479 – 1496
Abstract
Section 37D(1)(b)(ii) of the Pension Funds Act (the PFA) empowers a retirement fund to deduct from a member’s accrued retirement benefit the amount of damages for which the member is liable to their employer as compensation for loss caused by ‘any theft, dishonesty, fraud or misconduct’ by the member if the member either has in writing admitted liability for those damages or has been found by a court to be liable for them. This article examines firstly whether the authority to bring legal proceedings contemplated by this provision is exclusive to employers. Secondly, it queries whether orders by quasi-judicial forums, such as tribunals, including the Special Tribunal, that former employees must pay damages to their former employers can be used by retirement funds to withhold or deduct members’ retirement benefits given that such tribunals lack the status of a court for the purposes of the section.
