Prior to the introduction of section 37C into the Pension Funds Act. 24 of 1956, the benefit payable as a result of the death of a member would devolve in accordance with his last will and testament or the provisions of intestate succession. The advent of section 37C brought a statutory regime which expressly excludes freedom of testation and rather looks to the board of a fund to distribute the death benefit. The board may only pay the dependants of a deceased (either factual or legal) or the persons he has recorded on his nomination form. The section relies on the board to exercise its discretion in a manner which results in an equitable distribution of the death benefit notwithstanding that it does not provide any guidelines as to how this is to be achieved. Accordingly, numerous decisions are challenged by the identified beneficiaries because they are unhappy with the manner in which the board exercised its discretion. This results in complaints being lodged with the Pension Funds Adjudicator. Many such complaints should never have arisen or could have been easily solved by a proper exercise of discretion on the part of the board. The problem is that these complaints are adding to an already burdened office. Adequate training and understanding of the obligations of section 37C would probably result in fewer complaints to the Adjudicator. This dissertation examines whether the determinations which have been issued by the Adjudicator in respect of section 37C indicate a need for such training and understanding and, if they do, what possible remedies there might be to cure such a problem. Recommendations arising from this are that trustees must receive training focused on section 37C and proposed practical protocols to assist a board when exercising its duty to make an equitable distribution. / Jurisprudence / LL.M.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:unisa/oai:umkn-dsp01.int.unisa.ac.za:10500/8623 |
| Date | 08 February 2013 |
| Creators | David, Vanashree |
| Contributors | Sigwadi, M. (Prof.) |
| Source Sets | South African National ETD Portal |
| Language | English |
| Detected Language | English |
| Type | Dissertation |
| Format | 1 online resource (x, 134 leaves) |
| Rights | University of South Africa |
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