Do you have unclaimed pension funds? There's R44.9-billion worth in South Africa
Check out how to find out if you are owed anything?
Over the years there have been many amendments to the way pension funds are being managed, mainly because of the mismanagement that could be seen by many pensioners and their financiers.
When it comes to corruption, it can be tricky to find out the source if it runs deep, and with people having their own motivations for following the wrong path, we can say that it is not always everyone's MO to do the right thing.
According to the Financial Sector Conduct Authority (FSCA), the total amount of unclaimed pension funds in the South African retirement industry is sitting at R44.9-billion since the end of 2019, which leaves around 4.5-million beneficiaries who have not claimed their funds.
"In efforts to trace and pay the beneficiaries, more than R20 billion was paid to 598,000 members in the last five years, amounting to an average benefit of R36,978 per member." (Business Insider)
Some of the reasons that these funds haven't been claimed range from failure of the members to provide the fund with updated contact information about themselves and their beneficiaries; the failure of the employers to provide the fund with the details of the fund members; poor admin and/or record keeping by the administrators, in some cases these roles don't even exist.
There is also a requirement for foreign workers to exit the country after their work permits have expired, so there are insufficient means to enable these foreign workers to claim their benefits from their home countries and therefore these go unpaid and unclaimed.
"Failure by fund members to inform their dependents that, if they die in service, there may be benefits payable by their funds to those dependents and which institution to contact is also a reason as well as, the failure by boards of funds to take all reasonable steps to trace and pay those entitled to the unclaimed benefits." (Business Insider)
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Although attempts have been made to reunite many pension fund holders with their money, the Financial Sector Conduct Authority (FSCA) believes that 40% of the money will never be reunited with the rightful owners. That is why it is so important to just be sure and check.
If you are not sure whether or not you are one of the recipients to the unclaimed funds, then there are list of resources available to you. You can find out by accessing any one of these methods:
- Online searches – FSCA website
- Email enquiry - ID number: [email protected]
- Email enquiry – general request: [email protected]
- SMS enquiry – ID no: 30913
- SMS enquiry – general request: 30766
- Fax submissions: 086 578 1183
- Toll-free Telephone enquiries: 0800 20 3722 (toll-free)
- Walk in clients address: River Walk Office Park, Block B, 41 Matroosberg Road, Ashlea Gardens
- Written enquiries: PO Box 35655 Menlo Park Pretoria 0102
Image Courtesy of Unsplash Website