Mamelodi News | South Africa
A woman has failed in her bid to claim her late brother's R8.3 million pension fund death benefit, despite already inheriting R5.8 million from his deceased estate.
The matter was determined by the Pension Funds Adjudicator, who ruled that the deceased's long-term girlfriend qualified as a recognised dependant and therefore had a valid legal claim to the pension benefit.
The adjudicator found that pension fund death benefits are not automatically paid to heirs named in a will or those who inherit from the deceased's estate.
Instead, trustees are legally required to distribute the money in terms of the Pension Funds Act, which requires them to identify and consider all legal and financial dependants before deciding how the benefit should be allocated.
The ruling serves as a reminder that a pension fund death benefit is separate from a deceased person's estate, and inheritance alone does not guarantee entitlement to the pension payout.
The decision reinforces the responsibility of pension fund trustees to ensure that death benefits are distributed fairly and in accordance with the law, taking into account the financial dependency and circumstances of those left behind.
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