Termination of the doomed Postbank-SASSA agreement has been extended for another three months. Any social welfare beneficiary not tied to the Postbank-SASSA agreement will be watching this unfold with glee. However, for the roughly three-million beneficiaries still using Postbank’s services, more misery lies ahead.
Earlier this week, the Gauteng High Court threw out an urgent application to extend the Master Service Agreement (MSA) between the two. So, quite what happened in the intervening three days, no one knows …
POSTBANK-SASSA AGREEMENT
However, the South African Social Security Agency put out a press release late yesterday, detailing the Postbank-SASSA agreement extension. In it, SASSA spokesperson Paseka Letsatsi detailed why the notice period for the termination was extended by three months.
“This is to allow the executive authority time and space to deliberate on various issues. SASSA reiterates its commitment to putting the interests of millions of its beneficiaries first. We also strive to produce an improved customer experience,” Letsati said.
SERVICE WILL NOT BE INTERRUPTED
However, speaking earlier in the week, SASSA CEO Temba Matlou said there was no need for such an extension. “All eligible grant beneficiaries through the Postbank-SASSA agreement will continue receiving their grants,” insisted Matlou.
“According to the Social Assistance Act, beneficiaries are paid their social grants into any account of their choosing. Those with Postbank accounts are no exception and termination of the MSA has no bearing on that,” Matlou concluded.
POSTBANK-SASSA AGREEMENT BREAKDOWN
So, why the sudden need to extend the Postbank-SASSA agreement till 31 December 2025? After its denial in court, Postbank officials said earlier this week that termination of the MSA could have dire consequences for SASSA beneficiaries.
The government entity seems to imply that clients changing their bank details will be hit with big withdrawal fees. However, another likely concern is if the remaining three-million clients all change their banks at the same time, the Postbank IT systems might be vulnerable.
HOW TO SWITCH BANKING ACCOUNT FROM POSTBANK
Nevertheless, before the Postbank-SASSA agreement ends in December 2025, all beneficiaries are encouraged to change banks. To do so, you will have to visit your nearest SASSA office with the following information:
- Valid ID document.
- Bank statement/card showing your new bank account details.
- A still-valid SASSA-Postbank card.
Complete the mandatory Change of Payment form with a SASSA staff member present. Then undergo SASSA’s mandatory biometric enrolment at the same time.
If you are too old or frail to travel to a branch office, contact the SASSA helpline at 0800 60 10 11 for guidance.
