New Rules For The Pension Funds Adjudicator: What You Need To Know

The Ombud Council published the Ombud Council Rules for the Pension Funds Adjudicator, 2026 (the "Rules") on 4 March, marking an important development in South Africa's pension fund dispute resolution framework. While the Rules largely formalise existing practices at the Office of the Pension Funds Adjudicator ("OPFA"), they introduce greater clarity and procedural certainty for complainants, pension funds, administrators and employers alike.

What are the new Rules?

The new Rules establish a comprehensive framework governing how the OPFA receives, investigates and determines complaints relating to pension funds. Prior to the publication of these rules, the OPFA's procedures were governed by a combination of statutory provisions and internal practices. The new rules consolidate and formalise these processes, providing stakeholders with a single, accessible reference point. Importantly, the Ombud Council has emphasised that the Rules do not materially expand the Adjudicator's jurisdiction or impose significant new obligations on stakeholders. Rather, they seek to enhance transparency in the complaints process, document existing processes and align with anticipated legislative developments particularly the draft Conduct of Financial Institutions Bill

When do the Rules take effect?

The Rules adopt a phased implementation approach, with different provisions taking effect at different times. This staggered implementation was designed to allow stakeholders sufficient time to take note of the new requirements and review their internal processes to update documentation where needed.

• Most of the Rules came into effect on the date of publication (4 March 2026). These include provisions relating to definitions, fundamental principles, jurisdiction, receipt and handling of complaints, default determinations, time limits and administrative matters – being rules that are expected to have significant implications.
• Importantly, certain sub-rules that require operational adjustments or resource allocation have been given a lead time, in that they will only be effective from 1 October 2026. These provisions address communication and disclosure requirements, including the obligation on financial institutions to inform complainants of the OPFA's availability, preliminary determinations, costs and interest awards, and enhanced support for enforcement of section 13A contraventions relating to employers' failure to pay pension fund contributions.
• Additionally, further sub-rules will only come into effect on the 1 April 2027. These provisions introduce a formalised settlement and conciliation framework, including a new mechanism for the Adjudicator to issue written settlement recommendations.

Key Provisions

• Jurisdiction and standing to complain

The Rules clarify who may lodge complaints with the OPFA and the types of complaints that fall within its jurisdiction, and confirm that complaints may be lodged by members, former members, beneficiaries, dependents, nominees, successors in title and persons acting on behalf of complainants (including legal representatives and authorised agents). The Adjudicator may investigate complaints arising from the conduct of agents or service providers acting on behalf of funds, administrators or employers.

• Complaint handling and communication

OPFA is required to publish an official complaint form on its website. While the Adjudicator may decline to investigate complaints not submitted on a fully completed form, flexibility is retained for vulnerable customers or urgent cases, where the Adjudicator may accept complaints in another form where fair and equitable. The rules also introduce the concept of "premature complaints", which are situations where a complainant approaches the OPFA without first lodging a complaint with the fund. In such cases, the Adjudicator may submit the complaint to the fund on the complainant's behalf, satisfying the requirement under section 30A(1) of the Pension Funds Act, 1956 (the "Pension Funds Act".

With effect from 1 October 2026, respondents that are financial institutions are required to include specified in their written replies to complaints, including an explanation that the complainant may lodge a complaint with the Adjudicator if dissatisfied (Rule 6(1)). While this aligns with the existing obligations under section 210(2) of the FSR Act, stakeholders should be sure to review their existing complaints response templates to ensure compliance.

• Settlement and conciliation

The Ombud Council has codified its view that alternative dispute resolution can be a more efficient way of resolving pension fund disputes. With effect from 1 April 2027, Rule 7 enables and encourages conciliated settlements where appropriate. While not mandatory, a mechanism is introduced whereby the Adjudicator may issue written settlement recommendations. If accepted by all parties, such recommendations close the matter without formal determination. Failure to comply with settlement undertakings may be reported to the Financial Sector Conduct Authority ("FSCA").

• Summary dismissal

The Adjudicator is empowered to summarily dismiss complaints that are frivolous, vexatious, or lacking in substance. Importantly, the Rules now require the Adjudicator to inform the respondent within a reasonable time when a complaint has been summarily dismissed. This is a welcome procedural safeguard, ensuring that funds and administrators are aware when matters are closed at an early stage without formal determination.

• Default determinations

Rule 9 formalises the Adjudicator's existing power to issue default determinations where respondents fail to respond within a reasonable time. The rules require the Adjudicator to provide clear timelines and explain the consequences of not responding before proceeding to a default determination.

• Costs and interest

Under Rule 10 - effective from 1 October 2026 - the Adjudicator's has the power to award costs against a respondent or a complainant for improper or unreasonable conduct. Whilst cost orders are expected to be rare, stakeholders should nevertheless be mindful of this risk and ensure appropriate conduct throughout proceedings.

• Liaison with the FSCA

Co-operation between the Adjudicator and the FSCA is strengthened under Rule 14. Of particular significance is sub-rule 14(6), which provides for enhanced support for enforcement relating to section 13A of the Pension Funds Act, which addresses employers' obligations to pay pension fund contributions timeously - a widespread issue brought into sharp focus by the recent introduction of the "two pot" system. The Adjudicator is empowered to report non-compliant employers to the FSCA for administrative enforcement action.

• Reconsideration by the Financial Services Tribunal

Parties aggrieved by certain decisions of the Adjudicator may apply to the Financial Services Tribunal for reconsideration. The Adjudicator must inform parties of this right in relevant communications.

What should stakeholders do now?

For pension funds and administrators, priority should be given to reviewing complaint-response templates and internal processes to ensure that the communication requirements under Rule 6(1) are met by 1 October 2026. Processes should also be in place to receive and respond to premature complaints referred by the OPFA, and to engage constructively with any settlement proposals from 1 April 2027 onwards.

For employers, the heightened focus on section 13A enforcement should serve as a reminder to ensure that pension fund contributions are paid timeously and in full. The consequences of non-compliance may now include referral to the FSCA for administrative enforcement action. For all stakeholders, robust internal tracking and response mechanisms are essential to avoid the risk of default determinations or cost orders.

The new Rules represent an important step towards greater clarity, transparency and efficiency in pension fund dispute resolution. Provisions around conciliation, clearer communication requirements and stricter enforcement against employers failing to pay contributions are all positive developments for member outcomes. Stakeholders should use the window of phased implementation to review their processes and documentation, ensuring that they are well prepared for full compliance by the time all provisions are in force.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.