18/03/2023
Death Benefits.
In terms of section 37C of Pension Funds Act, a Death benefit is a claim that any dependent of a member of a Pension fund can claim against the Pension fund. A dependent is a person who was financial depending on the deceased for financial support such as paying school fees (tuition), food, shelter, clothing and other basic necessities.
A dependent is anyone who is a close relative or not a close relative but can proof dependency on the deceased. Unmarried partners and life partners (girlfriends who have a child with the decased and thkse who have no child with the deceased) can claim against the Pension fund.
In Fundsatwork Umbrella Pension Fund v Guarnieri and Others, the fund member who had passed away was survived by his wife, two children and mother. Prior to the distribution of the member’s death benefits, the mother also passed away. The fund’s board, which was not aware of her death, allocated 42% of the deceased member’s death benefit to her.
Before her death, the mother had completed an election form requesting an advance on the death benefit, and also requesting that the balance of the benefit be used to purchase an annuity. The beneficiary of that annuity after the mother’s death was her daughter, who was living in Australia and was not a dependant of the deceased member.
The deceased member’s widow challenged the distribution, which the Pension Funds Adjudicator set aside and referred back to the board of the fund. The board then made the same allocation as before. The late member’s widow challenged this in the High Court, which also set it aside. But later Supreme Court of Appeal was approached and the matter was decided on her favor. If you have a challenge with claiming your death benefit or Pension fund comment below with your contact number and a qualified person will assist you.
