R160 billion state fund issues warning to pensioners and beneficiaries
The Compensation Fund has issued a warning to specific pensioners, beneficiaries, and recipients of monthly payments to submit proof of life before the specified deadlines.
The fund pays out billions of rands to pensioners, injured workers, or their dependents each year, but must ensure that payments to beneficiaries are not fraudulent.
As such, proof-of-life documentation is required each year for both local and foreign beneficiaries.
In its latest notice, the Fund has given the latter the deadlines for the current year: 30 September 2026 and 31 March 2027.
This notice affects all non-South African citizens residing in and outside of South Africa, as well as all South African citizens residing outside South Africa.
The individuals affected can be injured-on-duty employees who receive a monthly pension from the Fund due to disability, the dependents of deceased pensioners, or the guardians receiving a pension on behalf of dependents below the age of 18 years.
These beneficiaries are required to submit confirmation-of-life documents to the Fund by 30 September, failing which their payments will be suspended.
If proof of life is not given by 31 March 2027, the payments will be terminated.
This will be done on “the assumption that the life status of the affected pensioners or beneficiaries is deceased,” the Fund said.
“No reinstatement of pensions will be done for any pensioners or beneficiaries after the termination of such pensions.”
The Compensation Fund is a state fund operating under the Compensation for Occupational Injuries and Diseases Act (COIDA).
All employers in the country contribute to the fund to protect workers and provide access to compensation if they are injured on duty or at their place of employment.
Most South African employers will be familiar with the deadline to submit an annual return of earnings (ROE) for their contributions for employees. This deadline passed on 30 June 2026.
South African households employing domestic workers are newer to the system.
Domestic workers had previously been excluded from COIDA, but were added following a 2020 Constitutional Court ruling declaring this invalid.
Since 2021, domestic workers have been entitled to compensation under the act if they are injured or contract a disease while on duty.
Compensation fund changes on the cards
According to the Department of Employment and Labour (DEL), employers paid over R12 billion to the fund in the 2024/25 financial year, and the fund paid out close to R4 billion in medical benefits.
The fund has turned a corner in 2026, though it still carries significant liabilities tied to outstanding payments and pensions. It has reserves of R160 billion, with liabilities exceeding R36 billion.
The DEL is making policy moves to tranform the fund, as well as the Unemployment Insurance Fund, to make them more operationally efficient.
At the centre of the plan is the intention to establish both the UIF and Compensation Fund as Schedule 3A national public entities under the Public Finance Management Act.
This would give them greater operational autonomy while keeping them fully accountable to the government, the DEL said.
Workers applying for UIF benefits and employees seeking compensation for workplace injuries have often faced delays linked to ageing systems and administrative backlogs.
Officials believe the reforms could significantly improve turnaround times and restore confidence in labour institutions.
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