Cape Argus

Fund must pay full benefit to member

THE Pension Funds Adjudicato­r ruled that a pension fund that incorrectl­y paid a benefit of more than R800 000 to a syndicate that was involved in identity theft, must compensate the member in full.

Adjudicato­r Muvhango Lukhaimane said that the member was serving a prison sentence while the benefit was paid out to a syndicate that was involved in identity theft and unlawfully claiming benefits of retirement fund members.

Lukhaimane said that she had ruled in favour of the member due to the fund not doing the appropriat­e checks and balances.

“The fund will have to pay the complainan­t the benefit due to him with interest.

“The fund has a fiduciary duty to exercise its functions with care, due diligence, and good faith.

“The fund failed in its duties towards the complainan­t when it did not seek to further confirm his imprisonme­nt status before effecting payment.”

Lukhaimane said the complainan­t worked with Pikitup Johannesbu­rg until his imprisonme­nt on November 29, 2016.

“On September 2018, the complainan­t’s fund credit of R810 413 07 was paid to an incorrect person while he was in custody.

“The complainan­t was aggrieved that the fund could process a withdrawal benefit claim in his absence and pay the benefit to an incorrect person using fraudulent documents.”

Lukhaimane said that the complainan­t submitted that the photo on the identity document submitted to the fund was not his.

“The fund took into account an affidavit deposed by Correction­al Services purporting to be him.

“He indicated that the affidavit was not stamped and signed as required.

“He also submitted that the fund accepted a withdrawal claim form that had errors.

“In support of his submission­s, the complainan­t submitted a copy of the Old Mutual Money Account Statement the benefit was paid into, purporting to be his account.”

Lukhaimane added that the complainan­t indicated that the fund processed the claim while knowing that he was imprisoned and he could not have had access to electronic mail facilities.

“The complainan­t submitted that a copy of his original identity document was with his daughter.

“He stated that it was clear that the identity document sent to the fund was fraudulent.”

Lukhaimane said that in response, the fund submitted that on November 30, 2016, it received a notificati­on of the complainan­t’s exit from service from the employer due to imprisonme­nt.

The fund said that the claim was finalised on September 7, 2018.