Investigation launched into pension fund linked to PPWAWU over death benefit complaint
Naheem Essop, Deputy Pension Funds Adjudicator.
Image: Supplied
In a shocking turn of events, a pension fund linked to the Paper, Printing, Wood and Allied Workers' Union (PPWAWU) has been referred to the Financial Services Conduct Authority (FSCA) for investigation. This decision comes after the fund repeatedly failed to respond to requests for information regarding a complaint from a grieving widow seeking the death benefit of her deceased spouse, who worked for Afripack (Pty) Ltd until his untimely passing on 6 August 2023.
Deputy Pension Funds Adjudicator Naheem Essop made the determination public, highlighting a troubling trend of non-responsiveness from the funds administered by Fairsure Administration (Pty) Ltd. Essop noted that his office has struggled to elicit any meaningful communication from the organisation, prompting the intervention of the FSCA to probe the conduct of the fund.
The issue at the heart of the complaint is the alleged non-payment of a death benefit. The complainant contended that after the passing of her spouse, she promptly submitted all necessary documentation to access his benefits. Although a trustee identified as Mr Zuma met with her, providing a letter stating thatthe deceased had a mere R6,000.56 in benefits, the manner in which this was delivered raised red flags. The meeting occurred outside the fund’s usual offices, and the letter was not addressed directly to the complainant, casting doubts on its authenticity.
Further complicating matters, the widow presented evidence from her late husband's employer, confirming his employment since 19 February 1981. However, the fund did not respond to requests from the Adjudicator for clarification on their investigation into the matter. The pronounced lack of communication from the fund’s chairperson and principal officer has only heightened concerns regarding the fund's operations and accountability.
Essop’s findings stressed the detrimental impact on the complainant and other potential beneficiaries, underlining that the protracted delay violates Section 37C of the Pension Funds Act, which mandates timely investigation and resolution of such matters. The Adjudicator ordered that the fund must complete its investigation by 31 January 2026 and that the death benefit be allocated and paid to the beneficiaries by 20 February 2026.
This case encapsulates the challenges faced by pension funds and raises critical questions about their governance and transparency. The outcome of this investigation could resonate across the industry, potentially setting a precedent for similar cases in the future.