{"id":867361,"date":"2026-07-24T12:00:00","date_gmt":"2026-07-24T10:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=867361"},"modified":"2026-07-24T12:07:53","modified_gmt":"2026-07-24T10:07:53","slug":"r160-billion-state-fund-issues-warning-to-pensioners-and-beneficiaries","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/867361\/r160-billion-state-fund-issues-warning-to-pensioners-and-beneficiaries\/","title":{"rendered":"R160 billion state fund issues warning to pensioners and beneficiaries"},"content":{"rendered":"\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

As such, proof-of-life documentation is required each year for both local and foreign beneficiaries.<\/p>\n\n\n\n

In its latest notice, the Fund has given the latter the deadlines for the current year: 30 September 2026 and 31 March 2027.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

These beneficiaries are required to submit confirmation-of-life documents to the Fund by 30 September, failing which their payments will be suspended<\/strong>.<\/p>\n\n\n\n

If proof of life is not given by 31 March 2027, the payments will be terminated<\/strong>.<\/p>\n\n\n\n

This will be done on “the assumption that the life status of the affected pensioners or beneficiaries is deceased,” the Fund said.<\/p>\n\n\n\n

“No reinstatement of pensions will be done for any pensioners or beneficiaries after the termination of such pensions.”<\/p>\n\n\n\n

The Compensation Fund is a state fund operating under the Compensation for Occupational Injuries and Diseases Act (COIDA).<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

South African households employing domestic workers are newer to the system.<\/p>\n\n\n\n

Domestic workers had previously been excluded from COIDA, but were added following a 2020 Constitutional Court ruling declaring this invalid.<\/p>\n\n\n\n

Since 2021<\/strong><\/a>, domestic workers have been entitled to compensation under the act if they are injured or contract a disease while on duty.<\/p>\n\n\n\n

Compensation fund changes on the cards<\/h2>\n\n\n\n
\"\"<\/a>
Labour Minister, Nomakhosazana Meth<\/figcaption><\/figure>\n\n\n\n

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.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

The DEL is making policy moves to tranform the fund, as well as the Unemployment Insurance Fund, to make them more operationally efficient.<\/p>\n\n\n\n

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.<\/p>\n\n\n\n

This would give them greater operational autonomy while keeping them fully accountable to the government, the DEL said.<\/p>\n\n\n\n

Workers applying for UIF benefits and employees seeking compensation for workplace injuries have often faced delays linked to ageing systems and administrative backlogs. <\/p>\n\n\n\n

Officials believe the reforms could significantly improve turnaround times and restore confidence in labour institutions.<\/p>\n\n\n\n