Recent law
The law is constantly shifting and often for a layperson it can become difficult to keep up to speed to ensure you know your rights.
We would like to bring to your attention a specific amendment that we have realised not many people are aware of. That being section 26(4) of the Maintenance Act 99 of 1998, where provision is made for the enforcement of a maintenance order against the benefits to which a retirement fund member is entitled. The enforcement can take place against any pension, annuity, gratuity, compassionate allowance or any other similar benefit and can therefore be attached or subject to execution so as to ensure the maintenance order is honoured.
Section 37A(1) of the Pension Fund Act 24 of 1956 stipulated that the maintenance claimed can only be deducted from the benefit once the member becomes entitled to it – that is upon retirement or withdrawal from the fund itself. However, the introduction of section 37D(1)9d)(iA) of the same Act 24 of 1956, the rights contained in section 37A(1) were altered. This new section states that a registered fund may deduct any amount payable in terms of the maintenance order therefore providing for attached maintenance to be paid out as soon as the order is obtained from the relevant court. These deductions are limited to the aggregate of pension interest available at that given time. In other words, if there is no pension interest in the fund there is also no deduction which can be made by the fund.
The 1998 Maintenance Act replaced the 1963 version and has improved our maintenance system greatly.
If you have any maintenance issues or queries please do not hesitate to contact us.
Thank you
Chantal Christofi