Woman gets her father’s death payout after a 27-year wait

Financial Freedom

Upon contacting the fund, Lukhumaine's office discovered that the reason it had held onto the entire death benefit for so long was because it had been unsuccessful in locating Tshililo and Mpho. At this juncture, it should be emphasized that the fund is obligated to actively distribute the benefit within 12 months after making reasonable efforts to find beneficiaries and dependents. A retirement fund differs from an insurance company, which pays out only after receiving and verifying a claim. A retirement fund cannot delay payment until a beneficiary submits a claim.

In her ruling, the adjudicator noted that the fund is not required to make a payment after the 12-month period has passed if further investigation is deemed necessary. However, in this instance, the fund did not provide valid reasons for the prolonged investigation process. Lukhaimane criticized the fund for its "unconscionable conduct" in taking an extended period to resolve the matter. She voiced criticism regarding the board's failure to diligently search for additional beneficiaries and for delaying contact until 27 years had passed since being approached by the complainant. The fund received instructions to identify the outstanding beneficiaries by February 2025 and update her office on their progress.

Should Tshililo and Mpho be located, the fund is obligated to review the allocation of the death benefit. In the event that these two beneficiaries cannot be located, the remaining benefit is to be assigned to Miss Tshililo.