Widow tackles pension fund over delay in R6,000 death benefit
A widow is seeking the death benefit due following her spouse’s passing, alleging that the Paper, Printing, Wood and Allied Workers’ Union pension fund has delayed and failed to respond.
The Office of the Pension Funds Adjudicator has condemned the fund’s silence, describing it as “concerning,” and referred the matter to the Financial Services Conduct Authority (FSCA) for investigation and potential penalties.
The OPFA reported a 13% increase in new complaints for the 2024/25 financial year, rising to 10,331 complaints from 9,177 the previous year.
Non-compliance by employers failing to pay contributions remained widespread, accounting for 44.34% of complaints, while withdrawal disputes made up 38.79%.
The Financial Services Conduct Authority has flagged 5,830 employers who are not meeting their legal obligation to pay pension deductions within seven days.
Deputy Pension Funds Adjudicator Naheem Essop described the Paper, Printing, Wood and Allied Workers’ Union pension fund’s conduct as “deeply concerning,” noting that it is administered by Fairsure Administration, which has a history of non-responsiveness.
The case at hand involves the non-payment of a death benefit to the widow of a former Afripack employee who passed away on August 6, 2023.
According to the complainant, she submitted all necessary documentation to claim the benefit, only to be contacted by a trustee, Mr Zuma.
Rather than handling the matter through official channels, he arranged to meet her in town and handed over a letter stating the deceased’s benefit amounted to just R6,000.56.
She questioned both the unusual meeting location and the accuracy of the amount, pointing out that her spouse had been employed since 1981.
The complainant also provided supporting documents, including the employer’s confirmation of employment from 19 February 1981 and a letter from the Master of the High Court dated 24 January 2024.
The court letter warned that letters of authority or executorship could not be issued unless the fund disclosed the outstanding benefit balance.
Despite multiple opportunities to respond, neither the fund, its chairperson, nor the principal officer provided any comment. The employer also failed to engage.
Essop noted there was no evidence that a proper investigation had been conducted, and the time that had elapsed since the death was “excessively long”.
The Adjudicator ordered the fund to finalise its investigation in terms of the Pensions Fund Act by 31 January 2026 and to allocate and pay the deceased’s death benefit to the identified beneficiaries by 20 February 2026.
The fund’s silence prevents the Adjudicator from determining whether all contributions were properly received and whether a full investigation was conducted, Essop said.
There are about 1,200 pension funds registered in terms of the Pension Funds Act, which includes all types of retirement funds: defined benefit, defined contribution, provident, and preservation funds.
“Even more troubling are serious allegations against a trustee that have gone unanswered,” said Essop. He explained that this conduct “affects not only this employer and the complainant but others as well”.
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