Cape Town - The Mineworkers Provident Fund (MWPF) has been rapped on the knuckles by the Pension Funds Adjudicator for leaving a death benefit unpaid for seven years, when pension funds are required by law to pay out benefits within a year.
Mr M was a miner at Tavistock Colliery and a member of the MWPF. When he died, on October 13, 2008, a death benefit became available for distribution among his beneficiaries. However, according to the adjudicator's determination, the fund had failed to distribute the benefit, which, on March 9, 2016, was worth R224 745.
In her complaint to the adjudicator, Ms D, the partner of Mr M, asserted she had submitted all the relevant documents to the MWPF. She said she had lived with Mr M from 1999 until his death. He had four children of whom two had died. Ms D said she had two children to support and had been communicating with the fund since Mr M's death.
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In its response, the MWPF submitted that it was still awaiting from Ms M a number of important documents, including a copy of her ID and a bank statement. It said that, on receipt of the required documents, the case would be processed and payments made.
In her determination, the adjudicator, Muvhango Lukhaimane, said the Pension Funds Act places a duty on the board of a pension or provident fund to identify the beneficiaries of a deceased member and to pay the benefit within 12 months of the member's death. The MWPF had failed to do this.
"The complainant submitted that she has provided the respondent with all the required death claim documents. However, the respondent had ceased its investigation until it received this complaint.
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"As a result of the MWPF's dilatory conduct, the deceased's beneficiaries suffered prejudice in that they have potentially been denied access to benefits which may have become available to them had the investigation been completed," Lukhaimane said.
She said it was the duty of the fund to gather all the information and obtain the required documents.
Lukhaimane ordered the MWPF's board to complete its investigation and consider the relevant factors for an equitable distribution of Mr M's death benefits to his beneficiaries within nine weeks from the date of her determination, March 22.
PERSONAL FINANCE