Over 22 000 Compensation Fund Pensioners Finally Receive Increase After Months Of Delays

For thousands of pensioners whose livelihoods depend on monthly payments from the Compensation Fund, the past year has been filled with anxiety and confusion. Delays in implementing the annual 5 percent pension increase left many wondering when the adjustment would finally reflect in their accounts.

This week brought long-awaited clarity. Minister of Employment and Labour Nomakhosazana Meth has confirmed that 22 567 pensioners have now received their full increases along with backdated payments.

What Led To The Delays

Responding to questions from Democratic Alliance MP Joseph Britz, Meth laid out the reasons behind the delays. Although the annual adjustment came into effect on 1 April 2025, she said the rollout was slowed down by several administrative hurdles.

The Fund had introduced a stricter account verification system during 2025 to tighten audit controls and prevent fraud. Pensioners were advised to move their payments to banks connected to recognised verification systems. This meant every beneficiary had to be re-checked to confirm identity and banking details before any increases could be processed.

On top of this, the integration of a new ICT service provider added further pressure to an already complex system. Meth said these combined factors created bottlenecks that prolonged the implementation of the increase.

Who Is Still Waiting To Be Paid

While the majority have now been paid, not all pensioners were able to receive their increase by 28 October 2025. Meth confirmed that the Fund is still waiting for proof of life and updated banking details from 517 foreign pensioners living in SADC countries.

She also noted that pensions for 3 649 government employees working for exempted employers are handled separately by the Government Pensions Administration Agency, which only received notification of the increase in October 2025.

The Fund’s Commitment Going Forward

Meth said the Fund is working to avoid a repeat of 2025’s delays. She emphasised that every pensioner who has been verified and who holds a FICA-compliant account at a qualifying bank has now received the 5 percent increase.

By November and December 2025, those verified beneficiaries received both their adjusted monthly pension and the full amount owed in backdated payments. According to Meth, this demonstrates a renewed commitment to paying all beneficiaries on time.

She added that the Fund continues to process outstanding queries and remains focused on addressing audit findings and preventing fraud. The goal is to ensure that the 2026 increase is implemented smoothly, without the administrative setbacks seen last year.

A System Under Pressure But Moving Forward

The Compensation Fund currently pays monthly pensions to 23 084 beneficiaries. For most, these payments form a critical part of their household income. While the delays caused understandable concern, the confirmation that more than 22 000 pensioners have finally been paid offers much-needed relief.

As the Fund continues its drive to tighten controls and modernise systems, beneficiaries will hope that these reforms lead to faster and more reliable payments in the years ahead.

{Source:IOL}

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