Investigating death benefit cases – a practical guide
13 Jan, 2025

 

Natalie Bowes, Head of Death Benefits at ICTS Death Benefit Services

 

In this 3 part series of articles, I wanted to shed some light on the process behind investigating death cases and determining a fair and equitable distribution of benefits.  Mostly, cases are fairly straight forward, but it’s the not so straightforward cases that require particular care and diligence.  I’ve shared such cases with you in Part 1 of this series, and now in Part 2, I’ll unpack some practical experiences.

 

Some common practical experiences that investigators might encounter whilst conducting an investigation:

 

Interviewing Family Members and Beneficiaries

 

  • Emotional Sensitivity: Families are often grieving, so it’s important to approach interviews with empathy while still gathering necessary information.

 

  • Inconsistent Stories: Sometimes, different family members provide conflicting information, which may require careful cross-examination or further probing to resolve discrepancies. Cross referencing information with third parties such as neighbours or work colleagues, can assist with working out the inconsistencies.

 

  • Not disclosing important information: Family members not disclosing important information during an investigation could result in family members or beneficiaries being excluded from the distribution of the death benefit. In cases of unnatural death, not disclosing whether a family member was implicated in a deceased’s members death could result in the inclusion of a family member who should not be included in the distribution.

 

  • Financial Dependency: Ensuring that the beneficiaries identified were in fact dependant on the deceased. Often, beneficiaries cannot provide proof of dependency because they were receiving the support in the form of cash and through E-Wallet, Checkers Money Market or Pep Money.

 

Reasons for Delays

 

  • Administrative Delays: Obtaining necessary documents, such as death certificates or medical records, can be time-consuming, causing delays in the investigation.  This could include obtaining the necessary documentation from the family members.

 

  • Disputes and Litigation whilst the investigation is ongoing: Disputes between beneficiaries, or between beneficiaries and other family members. This can extend the investigation process.

 

  • Disputes and litigation after a distribution decision has been reached: Disputes between beneficiaries or family members regarding the distribution and allocation of the death benefit. This dispute could go as far as the Pension Fund Adjudicator and delay the payment process.

 

 Ethical Considerations

 

  • Balancing Objectivity and Compassion: Investigators must remain objective and thorough while being compassionate towards grieving families. This balance is crucial to maintaining integrity in the investigation.

 

  • Privacy Concerns: Respecting the privacy of the deceased and their families while gathering necessary information is a critical aspect of the investigation.

 

Section 37C of the Pension Funds Act: The Act is very specific in how to handle death cases. Trustees have a duty to investigate all death cases. A number of factors must be considered during the investigations and benefit allocation e.g. age, financial dependency, living arrangements. A fair and equitable distribution decision must be reached by the Trustees of a Fund.

 

Each case can bring unique challenges, making practical experience invaluable in navigating the intricacies of death benefit investigations.

 

End of Part 2.  Part 3 will focus on several nuanced aspects and some key points to consider when investigating death benefits cases.

 

You can read Natalie’s first article in this series here.

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@Natalie Bowes, ICTS Death Benefit Services
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