Compliance by some of the private security sector employers still remains a huge challenge as a large number of security companies are still not making mandatory contributions to the Fund. One of the major challenges that the PSSPF is facing is that it operates in a dynamic industry that does not have a set number of operating employers. The Fund may currently be in the process of weeding out the non-compliant employers whilst new companies are being registered with the Private Security Industry Regulatory Authority (PSIRA) on a monthly basis.
The fund currently receives contributions from some 800 employers equating to R1 billion annually. This is in spite of another 250 000 security employee’s contributions not being received by the fund through fraud perpetrated by some employers. The loss to members translates to approximately R1.5 billion on contributions held back. The effect of non-compliance is evident with security employees and their families, who should be benefiting from various benefits offered by the Fund being unable to receive what is due to them as their claims are being repudiated as a result of not contributing and non-compliance. Some of the employees whose money has not been paid to the Fund have forfeited their benefits. This has also affected thousands of outstanding withdrawal claims. This includes since the inception of the Fund over 3289 funeral claims that have been repudiated to date which amounts to the value of R 30.4 million. On the latter, 1855 of these claims are entitled to lump sum death benefits of approximately R 102 million. The above figure excludes a large number of employees working in administration and support services that are supposed to also belong to the Fund. Of this number, only less than 300 000 security employees are members of the Fund, while the rest remain unaccounted for.
The Fund has added a list of all compliant employers for all interested stakeholders to view below: