A Compensation Fund for contributors who suffer financial loss resulting from fraud, theft, misappropriation or negligence of monies, will also be set up, from a cess being charged on the industry.rn
rnEmployees will also have the option of switching funds, to ensure they get the best return for their retirement nest egg, according to a draft pensions Act.rn
rnAn employer has to select three approved registered funds, of which the employee can select one fund to contribute.rn
rnThe pensions watchdog will regulate all Fund Managers, existing private provident funds, state contributory pensions schemes and other unregulated pension funds like Farmers pension schemes.rn
rnHowever, the pensions watchdogs authority will initially not cover the mandatory state pension funds, the Employees Trust Fund and the Employees Provident Fund, as both funds are being merged next year.rn
rnA World Bank consultant is due next week, to advice the government on how best to merge the funds that together manage over R