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Fund refuses to pay benefits without proof of death

Neelam Rahim | neelam@radioislam.co.za

2-minute read
11 March 2024 | 16:34 CAT

Image: Google

A woman who claimed her husband has been missing since September 2020 has failed in her attempt to get his provident fund to pay out a benefit.

The Mondi Mpact Group Fund Provident Section refused to pay the member’s fund credit, which stood at R251 006.93 as of January 2021, as there was no confirmation whether the member was dead or still alive.

The woman complained to the Pension Funds Adjudicator, Muvhango Lukhaimane, that her husband, who was employed by Mondi Limited, went missing in September 2020. She requested the fund release his benefits. However, the fund declined her request.

The complainant submitted that a death certificate had not been issued. She said she may only apply for presumption of death after seven years. However, she needed money to make a living.

The fund responded that in the event of a member’s death, the fund’s board of management may allocate the death benefit in accordance with section 37C of the Pension Funds Act. However, the death must be confirmed by a supporting death certificate issued by the Department of Home Affairs.

The fund stated there was no confirmation that the member was dead or still alive and advised that the complainant should pursue the matter with the South African Police Service.

In her determination, Ms Lukhaimane said that when a person goes missing in South Africa. There is no indication that they died from unnatural causes. There is only one possible remedy for the next-of-kin of the absentee, and that is to apply to the High Court for a “presumption of death declaration” based on the facts of the case.

“However, until a death certificate is issued, or a specific other order is granted, a missing person’s affairs are in legal limbo, and dependants may have no access to funds, and debts will be unpaid.

“In this instance a presumption of death order has not been issued by the High Court nor a death certificate. Therefore, the complainant is not entitled to a benefit from the fund in terms of its rules or the Act,” said Ms Lukhaimane.

The complaint was dismissed.

Listen to the full interview on Sabahul Muslim with Moulana Sulaimaan Ravat.

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