Naheem Essop, Deputy Pension Funds Adjudicator

A pension fund has been referred to the Financial Services Conduct Authority (FSCA) for investigation and penalty after the fund had repeatedly failed to respond to the Office of the Pension Funds Adjudicator for information pertaining to a complaint.

The Deputy Pension Funds Adjudicator Naheem Essop said in his determination that the FSCA must investigate the conduct of the Paper, Printing, Wood and Allied Workers’ Union (PPWAWU).

Essop said the fund is administered by Fairsure Administration (Pty) Ltd, and his office has struggled to get responses from funds under the administration of Fairsure. This has already been brought to the attention of the FSCA, he said.

The complaint that came before Essop concerned the non-payment of a death benefit by the fund, in respect of her spouse who had been employed by Afripack (Pty) Ltd and passed away on 6 August 2023.

The complainant submitted that following the passing of the deceased, she submitted all the necessary documents to the fund in order to access his death benefit. She said that a Mr Zuma, who is a trustee of the fund, contacted her and they met in town, where he provided her with a letter indicating that the deceased had a benefit in the amount of R6 000.56.

The complainant indicated that what was suspicious was that the trustee requested that they meet in town instead of the fund’s offices. Furthermore, the letter, which was attached, was not even addressed to her. She doubted that the letter reflected the correct fund value since the deceased was employed since 1981.

She provided a copy of the employer’s letter confirming that the deceased was employed from 19 February 1981, as well as a letter from the Master of the High Court dated 24 January 2024 stating that it was unable to issue letters of authority or letters of executorship if the outstanding balance was not disclosed.

The employer was granted an opportunity to comment on the allegations made against it but failed to respond to the Adjudicator. The fund, chairperson, and principal officer of the fund were granted multiple opportunities to comment on the allegations. However, they failed to respond.

In his determination, Essop said the fund has yet to pay the deceased’s potential beneficiaries the benefit due to them. Furthermore, there was no evidence that the fund conducted a proper investigation. The period that had elapsed since the date of the deceased’s death was excessively long. Therefore, the fund should finalise its investigation and proceed with the payment of the death benefit without any further delay.

“The fund’s failure to provide a formal response is concerning. Furthermore, it prejudices the complainant in that the Adjudicator is not in a position to make a decision whether the fund received all contributions in respect of the deceased and whether the fund has conducted a proper investigation as required in terms of section 37C of the Act.

“What is even more concerning is that there are serious allegations made against a trustee of the fund which has gone unanswered.

“It is on this basis that this matter is referred to the FSCA to investigate the conduct of the fund as it affects not only this employer and the complainant but others as well,” Essop said.

He ordered the fund to finalise its investigation in terms of section 37C of the Act by 31 January 2026 and to allocate and pay the deceased’s death benefit to the identified beneficiaries, on or before 20 February 2026.

ENDS