Man Seeks Justice Over Misallocated Pension Fund After Mother’s Death

In a poignant case revolving around family, inheritance, and pension schemes, Boikano Siphiwe Sibanda sought relief from the Financial Services Tribunal (FST) after Old Mutual mistakenly nominated his grandmother to receive all the funds from his late mother’s pension fund. Sibanda, a minor at the time of his mother’s passing in January 2008, found himself locked in a battle over his rightful share of the death benefit.

Before her passing, Sibanda’s mother worked at Pick ‘n Pay and was a member of the Saccawu National Provident Fund. Following her death, a death benefit was due to both Sibanda and his grandmother. Sibanda, being a minor, was entitled to 90% of the benefit, with the remaining 10% designated for his grandmother. However, Old Mutual trustees resolved to pay 90% of the death benefit to the Guardian Trust, with later communication erroneously suggesting that his grandmother would receive the entire sum, including Sibanda’s portion.

Sibanda, dissatisfied with this decision, lodged a complaint with the Pension Funds Adjudicator (PFA), arguing that the payment to his grandmother was unwarranted. Unfortunately, his application was dismissed in August 2024.

Sibanda claimed he filed his complaint on November 15, 2023, but the PFA recorded the complaint as being received on January 9, 2024—three years after Sibanda should have become aware of Old Mutual’s error. The PFA ruled that his complaint was time-barred.

Undeterred, Sibanda took his case to the FST, where the matter was heard by advocate Aasifa Saldulker. Upon reviewing the evidence, Saldulker confirmed that the PFA was correct in determining that the prescription period for Sibanda’s complaint began when he turned 18 on November 26, 2020. She further noted that there was no evidence to show Sibanda had lodged his complaint with the PFA before November 2023, making his complaint untimely.

“The tribunal agrees with the PFA on the issue of prescription and thus the applicant (Sibanda) was out of time when he lodged the complaint,” said Saldulker.

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