A disgruntled man sought relief the Financial Service Tribunal after Old Mutual nominated his grandmother to receive all the money from his later mother's pension fund. File Picture: Ian Landsberg/ Independent Newspapers
Image: : Ian Landsberg/ Independent Newspapers
In a poignant tale of family, inheritance, and the complexities of pension schemes, a disgruntled man sought relief the Financial Service Tribunal (FST) after Old Mutual nominated his grandmother to receive all the money from his later mother's pension fund.
Boikano Siphiwe Sibanda was still a minor when his mother passed on in January 2008.
Before her passing, she worked at Pick ‘n Pay and was a member of Saccawu National Provident Fund.
Upon her death, a death benefit became due to Sibanda and his grandmother. Sibanda, who was a minor at the time, was due to receive 90% and his grandmother would receive the remaining 10%.
A resolution passed by Old Mutual trustees, resolved to pay 90% of the death benefit to the Guardian Trust. However, subsequent communication suggested that she would receive the full benefit, including Sibanda's portion.
He lodged a complaint with the Pension Funds Adjudicator (PFA) and argued that the payment of his portion to his grandmother was without any basis and needs to be set aside. However, the PFA dismissed his application in August 2024.
Sibanda said he lodged his complaint on November 15, 2023, however, the PFA maintained that it received his complaint January 9, 2024, and by this date, the complaint was already time barred.
The PFA said his complaint was lodged more than three years after he ought to have been aware of Old Mutual's failure to pay the 90% benefit to him.
Moreover, it was said that he failed to provide a copy of a formal complaint lodged in November 2023.
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Disenchanted, Sibanda sought relief at the FST, and the matter was heard by advocate Aasifa Saldulker.
Looking at the evidence, Saldulker said the PFA correctly found that the applicable prescription period on Sibanda's complaint would have only started running when he attained the age of majority on November 26, 2020.
She added that there was no proof provided to the tribunal that Sibanda lodged his complaint with the PFA prior to the expiry of the 3-year period being before November 26, 2023.
"Accordingly, the tribunal agrees with the PFA on the issue of prescription and thus the applicant (Sibanda) was out of time when he lodged the complaint," said Saldulker.
Sibanda's application was dismissed.
sinenhlanhla.masilela@iol.co.za
IOL News
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