SOUTH AFRICA RETIREMENT FUND UPDATES
Clarity on the application of the in duplum rule on outstanding fund contributions
The in duplum rule is a legal principle originating from Roman law and part of South African common law. The rule limits the amount of interest that can accumulate on a debt. It essentially states that the total amount of unpaid interest cannot exceed the original outstanding capital amount of the debt. In other words, once the unpaid interest equals the principal debt, the interest stops accruing. The rule aims to protect debtors from excessive interest accumulation and encourages lenders to pursue debt recovery promptly.
There have been significant differences of opinion in the case law.
In 2023, the KwaZulu-Natal High Court ruled in Municipal Workers Retirement Fund v Umzimkhulu Local Municipality that the in duplum rule does not apply to statutory interest on late pension fund contributions under section 13A of the Pension Funds Act (PFA). After this case, the Office of the Pension Funds Adjudicator (OPFA) issued Communication 1 of 2024 confirming that it supported the view of the court that the in duplum rule does not apply to interest arising from the non-payment of arrear contributions in terms of section 13A(7).
However, in March 2025, in Blue Crane Route Municipality v Municipal Workers Retirement Fund, the Eastern Cape High Court handed down a judgment that the in duplum rule does apply to arrear contributions. This prompted the OPFA to issue Communication 1 of 2025 on 8 May 2025, in which they reconsidered their position on the matter and confirmed that the in duplum rule does, in fact, apply to outstanding employer contributions to a retirement fund.
The Information Regulator’s online portal for reporting security compromises
From 1 April 2025, all organisations must report any security compromises, commonly referred to as information breaches, on the Information Regulator’s (IR) eServices portal using the new Security Compromises Reporting functionality.
To access the eServices portal, visit the IR’s website at https://inforegulator.org.za and click on the eServices portal link at the top of the page.
Remember, to submit a breach notification, both the retirement fund and its Information Officer must be registered.
FSCA’s survey on two-pot fees
In September 2024, the FSCA surveyed 111 retirement fund administrators and six self-administered funds to assess two-pot retirement system fees.
Their key findings can be summarised as:
- Average costs: The average withdrawal fee is R357, with 37 administrators charging flat fees (R50–R500, most between R250–R350) and 12 using variable fees (R10 - R750). Once-off implementation costs reached R1.6 billion, with 65% tied to system upgrades.
- Challenges faced: Funds faced high withdrawal request volumes, system-related issues, payment delays, and slow account verification. Many administrators absorbed initial costs, but some passed them on via higher monthly/base fees and/or savings pot withdrawal fees, raising concerns about cross-subsidisation between members.
- Ongoing intentions: The FSCA will continue to scrutinise fees for fairness and transparency, engaging outliers, including both those providers who are charging above-average fees as well as providers who claim to not have invested in system development at all. The FSCA will monitor long-term cost impacts as the system stabilises and matures.
The FSCA aims to ensure fees align with costs incurred, promoting transparency and protecting retirement fund members.
Retirement fund trustees and management committees are encouraged to discuss their fees with their consultant, to appreciate the context of the FSCA’s survey at a point in time when information around two-pot implementation was not completely understood, and to make sure that their fees are reasonable.
Stay Informed, Stay Compliant: What You Should Do Next
To navigate these updates effectively, retirement fund stakeholders should review their compliance strategies, consult with experts, and stay engaged with regulatory developments. Proactive action today ensures protection and readiness for tomorrow.
COOKIE POLICY
Welcome to our website.
1. Introduction
This Cookie Policy explains how we use cookies and similar technologies on our website axioconsult.com. This policy is designed to help you understand what cookies are, how we use them, and the choices you have regarding their use.
2. What Are Cookies
Cookies are small text files that are stored on your device (computer, tablet, or mobile phone) when you visit certain websites. They are widely used to enhance your online experience by remembering your preferences and actions over time. Cookies are not harmful and do not contain personal information like your name or payment details.
3. How We Use Cookies
We use cookies for various purposes, including:
- Essential Cookies: These cookies are necessary for the basic functioning of our website. They enable you to navigate our site, use its features, and access secure areas.
- Analytical/Performance Cookies: These cookies help us understand how visitors use our website. They provide information about which pages are visited most frequently, how long visitors stay on each page, and whether they encounter any error messages. This data helps us improve the performance and usability of our website.
- Functionality Cookies: These cookies allow our website to remember choices you make (such as your username, language, or region) and provide enhanced, personalised features.
- Targeting/Advertising Cookies: These cookies are used to deliver advertisements that are relevant to your interests. They may also limit the number of times you see an ad and help measure the effectiveness of ad campaigns.
4. Your Cookie Choices
You have the option to manage your cookie preferences. You can usually modify your browser settings to accept, reject, or delete cookies. Please note that if you choose to block or delete cookies, some features of our website may not function properly.
5. Third-Party Cookies
We may allow third-party service providers to use cookies on our website for the purposes outlined in Section 3. These providers may also collect information about your online activities over time and across different websites.
6. Updates to This Policy
We may update this Cookie Policy from time to time to reflect changes in technology, law, or our data practices. Any changes will become effective when we post the revised policy on our website.
7. Contact Us
If you have any questions about our Cookie Policy or how we use cookies on our website, please contact us at
By continuing to use our website, you consent to the use of cookies as described in this Cookie Policy.