All contributing authorities to Authorized Superannuation Fund (ASF) are to take note of the mandatory requirements under the Superannuation Act 2000 and the Superannuation Regulations in terms of the measures/penalties for failing to comply with such requirements in remitting both employer and employee contributions.
An employer is required to contribute on behalf of each employee; it is also required to deduct employee contributions from their salaries. These are then remitted to an ASF at the end of each month and each fortnight respectively.
Failure by an employer to comply with these requirements amounts to an offence, which carries a fine or imprisonment or both.
Furthermore in the event an employer fails to remit both the employee and employer contributions within prescribed time and continues to default also amount to an offence which carries a hefty fine or imprisonment or both.
In view of the tougher penalties, which are now in force and to avoid the Central Bank from taking extreme measures against the defaulters, employers are urged to remit all contributions within the time required.