- A death benefit claim submitted in August 2017 remained unresolved for nearly nine years.
- Pension Funds Adjudicator Lebogang Mogashoa criticised the fund’s governance failures and lack of accountability.
- The fund was ordered to pay interest at 10.25% per year from 2 August 2018 until payment is made.
A grieving mother waited nearly nine years for her deceased son’s pension death benefit. She has finally received relief after Pension Funds Adjudicator Lebogang Mogashoa criticised the pension fund for shocking governance failures, missing records, and a complete lack of accountability.
The fund could not confirm if the benefit had ever been paid, which forced the Adjudicator to impose punitive interest at 10.25% per year for the long delay.
The complainant, the mother of the deceased and a pensioner who relied on her son for groceries, medical expenses, and policy payments, was left without relief for years while the issue bounced between fund administrators with no clear answers. The dispute centred around the fund’s inability to confirm whether a resolution to distribute the death benefit had ever been made or if any payment had been processed.
The complaint was received on 25 June 2025. The deceased, who had worked for Tosasmsp-Tosas (Pty) Ltd, was a member of the Chemical Industries National Provident Fund from 1 July 2013 until his death on 26 April 2017. He had a fund credit of R40,588.34.
Upon receiving the complaint, the fund’s administrator investigated and noted that the deceased did not appear on its system. On 27 November 2025, the fund’s current administrator reported that it had contacted former administrators Akani and NBC to check if the deceased had appeared on their systems, the status of the death benefit claim, the outcome of investigations into dependants and beneficiaries, and whether the death benefit had been paid.
On 28 November 2025, Akani confirmed that the deceased did not appear on its system and that a death benefit claim had been received by NBC on 2 August 2017. It also confirmed that Mokoena had been appointed executor of the deceased’s estate on 4 May 2017. NBC further received an email from Liberty, dated 22 August 2017, indicating that a death benefit amounting to R394,205.28 had been paid to CINPF Raubex Group on 11 August 2017.
The fund stated that NBC informed them that no payment was made from its system because the resolution to authorise the distribution of the death benefit had not yet been received when the matter was passed to Akani. The fund also mentioned that it was still trying to determine whether a distribution resolution was made in 2017, and if not, the trustees would discuss how the allocation should occur.
Governance failures exposed
Mogashoa condemned the board’s actions, calling them “severely deprecated.” He pointed out that the fund submitted an interim response on 8 December 2025, nearly nine years after the death, yet still could not confirm whether a resolution had been passed. Since then, the fund failed to provide results or a solution. Mogashoa found that this showed a lack of urgency and accountability.
Reminding the board of its governance duties, Mogashoa emphasised that the change in administrators between NBC, Akani, and Momentum did not excuse the uncertainty over whether the benefit had been paid. He noted that the board is responsible for ensuring compliance with all relevant laws, including maintaining proper registers, books, and records such as minutes and resolutions. He added that delegating functions to administrators does not relieve the board of its accountability.
Mogashoa said, “Perhaps more concerning is the fact that the board’s conduct also implies that the fund’s records may not be kept in the manner required by the Act.”
He continued, “The fund appears not to have, independent of the administrator, a record showing whether or not the benefit in this case was paid. This failure to maintain these basic records contradicts the governance responsibilities imposed on the board by the Act and other governance guidelines.”
The Adjudicator concluded that Mokoena had met her burden of proof and that, based on the evidence, the death benefit remained unpaid. Without lawful justification, the fund was ordered to complete its investigation under section 37C and distribute the benefit to dependants and beneficiaries.
Punitive interest imposed
Due to the extraordinary delay, the fund was ordered to pay interest at 10.25% per year from 2 August 2018, which was 12 months after the claim was submitted, until the payment date.
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