Pension Funds Adjudicator Muvhango Lukhaimane said she had ruled in favour of the member due to the fund not doing the appropriate checks and balances.
The Pension Funds Adjudicator has ruled that a pension fund that incorrectly paid a benefit of more than R800000 to a syndicate that was involved in identity theft, must compensate the member in full.
Pension Funds Adjudicator Muvhango Lukhaimane said the actual 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 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 R810413 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 ID 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.”
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, Lukhaimane said.
“The complainant submitted that a copy of his original ID document was with his daughter. He stated that it was clear that the ID document sent to the fund was fraudulent.”
Lukhaimane said that in a 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 the claim was finalised on September 7, 2018. They believed the member’s bank account was opened after they received what they believed was instructions from the member.
Lukhaimane urged members of pension funds to check their yearly pension fund statements to see if everything is in order and also to request quarterly statements, if possible.
The Mercury