Julius’s* sister, who was working as a cleaner at the time, died and left behind dependent children. He wants to know if he can claim the money from her provident fund. Scorpion Legal Protection explains how provident fund money is paid out.
How do provident fund payouts work?
There are laws that govern how provident fund money can be paid out – it is not as simple as just claiming the money from the deceased person, even if you are family. The distribution of death benefits must be done according to section 37(C) of the Pension Funds Act, which says that:
- Money must first be paid to nominated dependent beneficiaries (like children) and spouse in proportions deemed equitable by the trustees
- If the deceased person did not nominate beneficiaries, the money will be paid into the deceased person’s estate and will then be distributed according to the person’s will
- If they did not leave a will, the estate will be distributed according to the rules of intestate succession.
Relatives can only claim this money if they are nominated as beneficiaries by the deceased person, and if there are no dependents (like children) who are eligible to claim the money. However, being nominated by the deceased does not guarantee that you will be paid, because the trustees of the fund are the ones who will decide who must be paid and who must not be paid.
Where do you go to claim provident fund money?
If Julius does not know the name of the provident fund, he has to approach his sister’s employer to be assisted in lodging a claim with the fund administrator on behalf of the minor children.
What documents do you need?
- A completed 'Application for Death Benefits form' signed by the claimant and Annexures 'A-H'.
- A completed bank mandate form.
- A certificate of service from the employer.
- A Revenue Form D.
- A certified copy of the Death certificate.
- A certified copy of the marriage certificate, divorce decree or customary union certificate.
- A copy of the ID of the deceased and/or ID or birth certificates of the dependents.
- A certified copy of the last will of the deceased.
If the children are minors, their legal guardian will be able to apply for a child support grant on their behalf from SASSA.
You may also be interested in:
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Company withholds his provident claim form
Dealing with a deceased’s estate
If you have a query, follow Scorpion Legal Protection on Facebook and ask your question during our next Live Q&A (every first Thursday of the month from 11:30- 13:30).
* This is only basic paralegal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing. Cases are based on fictional characters unless otherwise indicated.