The fortunes of a company and its staff are inextricably linked. But there is one area where even if the company is liquidated, an employee is not affected the management of the individual employees retirement fund.
While a company is responsible for collecting each staff members contributions made to the company provident or pension fund, once the contributions have been forwarded to the administrator managing the retirement fund, they become assets of the employee.
In the unfortunate event of the company being liquidated, creditors of the company have no claim on the retirement funds collected on behalf of employees. Retirement funds belong to the employees and will be safely looked after by the fund administrator.
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