Pension fund reverses decision, pays out R798 000 death benefit to beneficiaries

( @PERSFINZA )

- DIEKETSENG MALEKE [e-mail]

A PENSION fund has reversed its initial decision and will now pay out a death benefit of R798 066,32 to the beneficiaries of a deceased member, following intervention by the Office of the Pension Funds Adjudicator (OPEA).

This comes after the fund had previously paid only R18 691.26 to the deceased's estate, citing a lack of contributions during the member's absence from work due to illness.

The OPFA, a statutory body tasked with resolving pension-related disputes, investigated the matter after receiving a complaint from the deceased’s son.

The complainant stated that his late father had been employed by Steval Engineering and contributed to the Metal Industries Provident Fund. He further explained that his mother, who has since passed away, had informed him that the benefit would be paid to him once he reached adulthood. However, when he approached the fund for payment, he was told that the benefit had already been paid out in 2014.