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IOL News
08-08-2025
- Business
- IOL News
Mother in a legal battle as late daughter's boyfriend stands to inherit big portion from her R2. 4 million pension fund
Mother challenges late daughter's boyfriend from inheriting in her death benefit. Image: Pexels A mother who was aggrieved after her late daughter's boyfriend was allocated a huge portion in her death benefit approached the Pension Fund Adjudicator (PFA) to challenge the decision. Her daughter died in August 2021 and NMG Umbrella SmartFund was tasked with distributing her over R2.4 million pension fund to her beneficiaries. The allocation was as follows: the mother received 15%, the two children received 25% and 30% respectively, and the father received 30%. Dissatisfied with the allocation, she appealed at the PFA, arguing that the fund did not adequately consider her significant financial reliance on her daughter, especially given her age of 57 at the time of her daughter's passing. She explained that her daughter supported her financially after asking her to leave her domestic job and move to the Eastern Cape to help with the children and was paying her R4,000. Her daughter eventually bought her a house in Gauteng, and she moved back following her passing. Moreover, she submitted that her daughter's boyfriend misled the fund by saying he paid a portion of lobola negotiations in December 2015. She said there was no lobola paid and they were never in terms of customary law. This was confirmed through an affidavit by her relative. She said that the boyfriend is an engineer at Transnet and was never financially dependent on her daughter. Meanwhile, she had no income and financially relied on her daughter. She contended that 15% was insufficient for her lifelong maintenance and she was entitled to 30%. She further proposed that a portion of the funds be allocated to the children, with the father receiving only five percent. In response, the boyfriend insisted that he paid R15,000 lobola after his family was charged R93,000. He said both his children used his surname, and this wouldn't have been allowed if he was just a boyfriend. He said he had plans to complete the lobola, but there were other expenses to handle after his family had grown. In February 2021, he discussed with the deceased's mother how he would settle the outstanding lobola balance, but the girlfriend died in August 2021. According to him, their nanny went back to Zimbabwe and the deceased asked her mother to assist with the children temporarily. Her mother, in turn, declined any compensation for her time living with them. After the death of his girlfriend, he wished to continue living with the children and their grandmother as he was still grieving. However, the mother refused, opting to return to Gauteng with the children. Despite him consistently providing monthly financial support and purchasing clothes, he was denied contact and eventually had to pursue legal action to gain access to his children. During this period, the grandmother also initiated proceedings against him at the Commission for Conciliation, Mediation, and Arbitration (CCMA), asserting that she was his employee and demanding compensation. Meanwhile, the fund said they managed to confirm that the deceased was paying the bond where her mother lives. However, following her death, proceeds from a life policy settled most of the outstanding bond leaving a balance of R7,202. It was also submitted that she also received R1,380 child grant for her other grandchildren. Additionally, she has another child who should assist her financially. The fund acknowledged that the deceased and the boyfriend were not married but recognised that they were in a permanent life partnership. They were co-dependent on each other as they lived in the same household, shared household expenses, and obtained a joint bond and joint life cover. In addition, the boyfriend maintained the deceased as a member on his medical aid since 2016. The fund submitted that the board's decision was intended to achieve equitable results considering all relevant factors and it allocated the death benefit according to their needs and circumstances. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Next Stay Close ✕ Reviewing the evidence, the adjudicator Muvhango Lukhaimane, said the fund failed to highlight the extent of the boyfriend's financial dependency on the deceased and how the deceased's death left him financially worse off. He was allocated 30% of the death benefit, but the fund did not explain how it was calculated based on his financial circumstances. Lukhaimane said fund also considered the mother's other children as potential financial contributors. However, it overlooked the fact that the specific child it referenced was unemployed. "Therefore, the fund was not rational in making its decision and failed to consider all the relevant factors when allocating the benefits to the deceased's beneficiaries. The fund must investigate the financial circumstances of the beneficiaries and the extent to which each beneficiary was dependent on the deceased," she said. Lukhaimane overturned the decision, directing the fund to investigate the financial situations of the identified beneficiaries and any other factors the board deems relevant.
IOL News
07-08-2025
- Business
- IOL News
Daughter fights for father's outstanding R400,000 pension fund after two beneficiaries were untraced for almost 30 years
Daughter fights for father's outstanding pension fund. Image: Pexels A woman who inherited over R1.2 million from her late father's pension fund sought relief at the Pension Fund Adjudicator (PFA) to access the balance after two beneficiaries have not been traced for almost 30 years. The father died in May 1995 and was a member of the Metal Industries Provident Fund. Following his death, over R1.6 million became available for distribution to his beneficiaries. His daughter received more than R1.2 million, with the first payment made in May 2023 and the outstanding balance paid in August 2023. Two more beneficiaries were listed on the nomination documents, his nephew and his brother. In November 2023, the daughter returned to the fund to get the balance. She clarified that it was her grandmother, not her father, who had completed the nomination documents. She claimed she did not know the nephew's location, as he was homeless and lived on the streets. Information regarding the deceased's brother was unavailable. At the hearing, the fund explained that it received the father's documents from his employer in August 1996 and three people were listed as his children. The fund maintained that it conducted an investigation to identify potential dependants to distribute the death benefit fairly. It stated that this had been achieved as the daughter received her portion and no further benefits were due to her. Looking at the matter, the adjudicator Muvhango Lukhaimane, noted that the investigation remained incomplete and the fund failed to explain the cause of the delay in finalising it. Lukhaimane said the board had not made any effort to trace the other two beneficiaries except to rely on the information provided by the deceased's daughter. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading "For the board to wait for over 27 years since it was notified of the deceased death until it was approached by the complainant is inexcusable and unconscionable. It is clear that the board failed to conduct a proper investigation within a reasonable time to the extent that there is an allegation that one of the beneficiaries is homeless and living on the streets whilst there is a benefit due to them. The fund must make effort to obtain further information on the two beneficiaries," she said. Lukhaimane added that a reasonable board would have considered various options to gather the remaining information about the other dependents, including conducting interviews with other individuals. "It does not appear that the board has any plans to progress the matter except to wait for the dependants to pitch. For the board to do nothing but wait when the benefit is needed for maintenance is a dereliction of fiduciary duties," she said. The board was given a year to trace the remaining beneficiaries and if they were unable to find them, they were directed to allocate the death benefit to the daughter. IOL News Get your news on the go, click here to join the IOL News WhatsApp channel.
IOL News
07-05-2025
- Business
- IOL News
Daughter challenges stepfather after he inherits majority from her mother's R7. 9 million death benefit
An aggrieved chartered accountant took the Pension Fund Adjudicator and Allan Gray to the Financial Services Tribunal after her stepfather was allocated a major portion from her mother's death benefit. Image: Pexels An aggrieved chartered accountant took the Pension Fund Adjudicator (PFA) and Allan Gray to the Financial Services Tribunal (FST) after her stepfather was allocated a major portion from her mother's death benefit. Hayley Marie Ward who was 25 years when her mother died, was unhappy after Allan Gray Retirement Fund (AGRF) and Allan Gray Pension Preservation Fund (AGPE) nominated Waynne Millard, 63, to receive 58% from her mother's R7.9 million death benefit. The deceased, Gail Pamela Millard, 58, died in August 2023. She was married to Waynne for 18 years. In her first marriage, she had three daughters, Hayley, Andrea Lynne Ward and Michelle Robin Ward. Gail had over R7.9 million in the AGPE and over R24,000 in the AGRF. In the AGPE, she nominated Waynne to receive 10%, Hayley 30%, Michelle 28%, and Andrea was allocated 32%. In respect of the AGRF, her nominations were 20% each for three beneficiaries except for Michelle who was allocated 40%. Before releasing the funds, Allan Gray conducted an investigation and determined that Wayne and the deceased's mother were factually her dependents. Even though daughters are legally her dependants, they were not dependent on their mother at the time of her death. Based on information gathered after the investigation, Allan Gray re-allocated the death benefit as follows: Allan Gray Retirement Fund (AGRF) and Allan Gray Pension Preservation Fund (AGPE) nominated Waynne Millard to receive 58% from her mother's R7.9 million death benefit. Image: Screenshot Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Disenchanted, Hayley lodged a complaint with the PFA in April 2024. The crux of the complaint was that Allan Gray used the incorrect life expectancy for Waynne hence an excessive portion of the death benefit had been re-allocated him. She argued that he was unjustly enriched, and this prejudiced her and her siblings. She said had the correct facts and figures been used, Allan Gray ought to have allocated at most 19% of the total death benefit to Waynne and not 58%. The PFA dismissed her complaint, and she sought relief at the FST. Amongst other things, the FST looked at the evidence used by Allan Gray to allocate the funds.
