Is this normal for a provident/retirement fund

[marbro]

So my late wife had her retirement fund with PSG Wealth,
I was listed as the sole beneficiary and after her passing I contacted them

After filling in loads of paperwork, including getting her parents to complete forms saying they do not want to claim etc, Im now filling in forms discussing my financial situation,
Breakdown of rent/bond, Food expenses, etc..

Is this normal? I have cashed out a pension before, Which didn't include any of this.....

 

[Matt91]

Condolences.

 

[Cius]

So my late wife had her retirement fund with PSG Wealth,
I was listed as the sole beneficiary and after her passing I contacted them

After filling in loads of paperwork, including getting her parents to complete forms saying they do not want to claim etc, Im now filling in forms discussing my financial situation,
Breakdown of rent/bond, Food expenses, etc..

Is this normal? I have cashed out a pension before, Which didn't include any of this.....

Sounds like they are just taking a chance and gathering financial info on you. Try push back a bit and say you would like resolution or you will start consulting the Ombudsman. Perhaps then they will close out. Once a beneficiary is selected and it is confirmed the will aligns all that is needed as paperwork is proving who you are, and proving death via a death certificate.

This extra data they are harvesting is to enable them to sell more crap to you probably. I would just refuse and start making a fuss as that is none of their business.

Condolences.

 

[WollieVerstege]

Condolences.

Yes this is normal these days. The law changed that anyone that can provide evidence that they were financially dependent on your wife can claim from her pension money. This is regardless of who was appointed as Beneficiary. The trustees of the fund have a responsibility to look into all potential claims and dependents.

The forms are meant to determine that financial dependence. This is in case someone else pops out of the woodwork claiming money.

This does not apply when you cash out your own pension.

 

[zerocool2009]

A few guys at my work is doing section 14’s from psg (its taking months now).

 

[unobeat]

Condolences to you

 

[purple face]

Condolences to you, it sounds like they are trying to find a way of not paying you the money.

 

[marbro]

Thanks everyone.

I kicked back, told them im not comfortable disclosing my finances with some rando company that I will not be dealing with

If i was not a beneficiary , i would understand.. or if her parents wanted to claim, Id understand.... but this is bull

@WollieVerstege , No one else is claiming though? so why the extra work?

 

[Kosmik]

Condolences.

Yes this is normal these days. The law changed that anyone that can provide evidence that they were financially dependent on your wife can claim from her pension money. This is regardless of who was appointed as Beneficiary. The trustees of the fund have a responsibility to look into all potential claims and dependents.

The forms are meant to determine that financial dependence. This is in case someone else pops out of the woodwork claiming money.

This does not apply when you cash out your own pension.

People can provide evidence and try but the law does not put the onus on the beneficiary. Not their job to go chasing around others and there is a window that the payout is supposed to be done in.

Sounds dodgy as ****. A nominated form is not part of the general estate.

 

[Hazy_Living@79]

Can't remember my estates law very well, but I want to say its a S4Q deduction, and does not form part of the estate. If OP is listed as a beneficiary of 100%, they must payout 100% to him.

Feel like @RonSwanson would know.

People can provide evidence and try but the law does not put the onus on the beneficiary. Not their job to go chasing around others and there is a window that the payout is supposed to be done in.

Sounds dodgy as ****. A nominated form is not part of the general estate.

 

[supersunbird]

Seems there have been changes:

Not respecting your dying wish: Pension fund trustees are not bound by beneficiary nomination forms

In the recent case of Ndwandwe v Trustees of Transnet Retirement Fund and Others [2023] ZAKZDHC 8(22 February 2023) the High Court in Durban again had to deal with the question of whether thetrustees of a pension fund can deviate from the wishes of a member as recorded in the member’sbeneficiary...

www.cliffedekkerhofmeyr.com

• The court found that the trustees had the discretion to determine the distribution of death benefits among dependents, as long as it was rational and equitable according to the fund's rules. Members should be aware that nomination forms are not binding, and trustees have the authority to make decisions based on their assessment of dependents' needs.

EDIT:
I wonder if the same applies to Retirement Annuities?

 

[RonSwanson]

Can't remember my estates law very well, but I want to say its a S4Q deduction, and does not form part of the estate. If OP is listed as a beneficiary of 100%, they must payout 100% to him.

Feel like @RonSwanson would know.

Unfortunately I remember even less than you. :-(

Commiserations to the OP.

 

[Kosmik]

Seems there have been changes:

Not respecting your dying wish: Pension fund trustees are not bound by beneficiary nomination forms

In the recent case of Ndwandwe v Trustees of Transnet Retirement Fund and Others [2023] ZAKZDHC 8(22 February 2023) the High Court in Durban again had to deal with the question of whether thetrustees of a pension fund can deviate from the wishes of a member as recorded in the member’sbeneficiary...

www.cliffedekkerhofmeyr.com

EDIT:
I wonder if the same applies to Retirement Annuities?

Note its also the funds own rules in that court case, not a rule of law. I think a pension fund is bound a bit differently vs a RA but I suspect the court upheld the contractual law : i.e. the laws of the fund to which the person is a member vs any other type of precedent.

 

[marbro]

well. chucking more info on

FNB are the executors of her estate (Dont get started on that mess) , and they approved the release of the funds.
So its not even that the estate is claiming.

Gah

 

[Kosmik]

well. chucking more info on

FNB are the executors of her estate (Dont get started on that mess) , and they approved the release of the funds.
So its not even that the estate is claiming.

Gah

Estate cannot claim against nominated AFAIK.

 

[WollieVerstege]

Thanks everyone.

I kicked back, told them im not comfortable disclosing my finances with some rando company that I will not be dealing with

If i was not a beneficiary , i would understand.. or if her parents wanted to claim, Id understand.... but this is bull

@WollieVerstege , No one else is claiming though? so why the extra work?

You won't necessarily know. Another person who may have a claim can petition the fund directly. They don't need to tell you. Obviously the fund will let you know if such a person has a legitimate claim and that it can affect your payout.

So what happens is the fund basically requests all the info up front in case they need to deal with such a claim. Alternatively they can wait to see if a claim arises and then request the info, but I guess then people will be complaining about why the info was not requested up front and/or why everything is now delayed pending more info being obtained.

 

[WollieVerstege]

People can provide evidence and try but the law does not put the onus on the beneficiary. Not their job to go chasing around others and there is a window that the payout is supposed to be done in.

Sounds dodgy as ****. A nominated form is not part of the general estate.

The OP must do nothing except provide the info requested of him, which is basically his monthly budget - should take no more than 5 minutes. If there is someone else claiming from the fund it is up to that person to provide all the applicable information/evidence in order to justify a payout from the fund.

But yes, dealing with such a claim can delay the final payout by months, if not years.

 

[Kosmik]

The OP must do nothing except provide the info requested of him, which is basically his monthly budget - should take no more than 5 minutes. If there is someone else claiming from the fund it is up to that person to provide all the applicable information/evidence in order to justify a payout from the fund.

But yes, dealing with such a claim can delay the final payout by months, if not years.

What right does the company have to know this?

 

[HowTo]

Will comes to mind.
I have the same scenario, at least there is a testament.
Married in community of property, what is hers is also mine.
She does not have much on her name.
I don't own property only two cars and furniture.
This will be long process.

 

[rh1]

Condolences.

Yes this is normal these days. The law changed that anyone that can provide evidence that they were financially dependent on your wife can claim from her pension money. This is regardless of who was appointed as Beneficiary. The trustees of the fund have a responsibility to look into all potential claims and dependents.

The forms are meant to determine that financial dependence. This is in case someone else pops out of the woodwork claiming money.

This does not apply when you cash out your own pension.

Only my wife is listed, since I know she will take care of our daughter. One would think that the fund owner had his or her reasons for listing the beneficiaries, i.e. they know best.

Does this rule apply to life insurance as well?

How does this prevent the fund from paying fraudulent claims. I.e. Nephews/Nieces making false claims that they were dependent on their uncle.