The FIMA grants retirement funds six months to amend their rules to comply with the new law. In the meantime, the rules will apply except for any provision which is inconsistent with the FIMA.

From 1 May 2026, any late payment of contributions by an employer will attract penalty interest at the repo rate plus 4%, starting 7 days after the end of the month in which they were due. Currently, the effective rate is 10.5%.

Members will earn late payment interest on any unpaid contributions. Past practice has been for members to earn normal investment returns, based on the assumption that contributions were received and invested promptly. The new FIMA provision adds significant administrative effort, as it requires a complex calculation that accounts for the amount and date of payment. Such a calculation is incompatible with monthly batch processing employed by most retirement fund administration systems.