How to keep your pension fund fraud-proof

If you’re saving for retirement in South Africa – whether through your workplace pension, a provident fund, or a private retirement vehicle – it’s worth taking a few simple but important steps to ensure your savings remain secure. Recent stories of pension funds being mismanaged, or workers discovering that contributions deducted from their pay never reached the fund, highlight how crucial vigilance is.

Know exactly who is holding your pension

When you join a pension or provident fund, confirm the full name of the fund, the administrator (or fund manager), and get a membership or reference number. Employers sometimes mishandle contributions – deductions may appear on your payslip, but the funds are not always forwarded correctly to the pension fund.

If you change jobs, resign, or switch funds, track the transfer of your savings. Ask for confirmation that your contributions were correctly transferred or preserved – ideally in writing.

Watch out for employers who don’t pay contributions

In South Africa, thousands of employers have recently been found to be in breach of the law, deducting pension contributions from employees but failing to pay them into the pension fund.

That’s why it’s vital to check your fund statements regularly (you should receive periodic statements – at least annually) and match them against your pay stubs. If contributions appear on your payslip but not on fund statements, flag it immediately. If your employer fails to fix the problem, you – or a beneficiary – can lodge a complaint with the statutory Office of the Pension Funds Adjudicator (OPFA).

Be alert to scams and fraudulent communication

Pensioners and fund members have been targeted with fake letters, emails or messages – often using real-looking letterheads of known pension funds or institutions. These messages sometimes ask for identity numbers, bank or account details, or prompt people to click on suspicious links.

Legitimate pension funds do not ask members to pay fees up-front, offer “faster payments” in exchange for money, or request sensitive information by email, SMS or WhatsApp. If you receive such a request – even if it appears to come from a trusted source – treat it with skepticism. Confirm with the fund directly, using contact information found on its official website.

Also be wary of financial “influencers” or unofficial advisors (“finfluencers”) on social media offering retirement- or pension-related “tips” or “opportunities.” Many lack formal training, and some promote high-risk or fraudulent products.

Protect your personal and account information

Because pension-fund accounts are often managed online or through digital systems, it’s essential to safeguard access:

• Use strong, unique passwords for any accounts; avoid re-using passwords across different services.
•  Enable two-factor authentication (2FA) where possible.
• Avoid logging into pension or banking sites via insecure Wi-Fi networks or public computers.
• Never share OTPs, PINs, passwords or other sensitive information requested via suspicious messages.
• Regularly check your credit report to pick up signs of identity theft or unauthorised activity.

Demand transparency – and take action if things go wrong

Your fund should provide regular statements showing how much has been contributed, what fees have been charged, and how investments are performing. If you don’t get these – or they don’t reflect what you expect – ask questions:

•  Who is managing the fund?
•  Where are the contributions invested?
•  What fees are being charged (administration, management, insurance, etc.)?
  If you suspect maladministration, missing contributions, or misuse of your pension savings, you have the right to lodge a complaint with the OPFA (or the relevant oversight body). The process is supposed to be free and meant to protect your rights.

Many people rely on their pension fund to provide a financial safety net in retirement. That’s why it’s so important to treat it as you would your own bank account or investment: with awareness, regular monitoring and a healthy dose of caution.

By knowing who manages your fund, reviewing your statements, protecting your personal data, being alert to scams, and taking swift action if something seems wrong, you drastically reduce the risk of losing out.

In a world where scammers, unscrupulous employers, and negligent administrators exist – the best protection for your pension is: you.