Daughter’s Bid for Bigger Slice of R14.8m Death Benefit FailsTribunal Says ‘No’

A woman who sought a larger portion of her late father’s R14.8 million pension death benefit has had her application dismissed by the Financial Services Tribunal.

Puni Modiboa challenged the distribution of the benefit from the Sentinel Pension Fund after her father, Mr MG Phillips, died in June 2021.

The Distribution

Under Section 37C of the Pension Funds Act, pension fund trustees must distribute death benefits equitably among dependantsnot strictly follow a beneficiary nomination.

After investigating the deceased’s dependants, the fund’s board allocated:

• 34% to a minor child

• 22% to another minor child

• 8% (almost R1.19 million) to Modiboa, an adult daughter

The Challenge

Modiboa argued that the board relied on incorrect information about her financial situation and wrongly concluded she was financially independent at the time of her father’s death. She maintained she had been unemployed and financially dependent on him.

She also pointed to a 2008 nomination form that allocated 20% of the benefit to her.

The PFA Ruling

The Pension Funds Adjudicator (PFA) dismissed her claim in May 2025, finding that:

• The fund conducted a proper investigation

• It reasonably prioritised the needs of minor children

• The 2008 nomination was outdatedfamily circumstances had changed significantly

The Tribunal

Modiboa approached the tribunal 97 days after the statutory 60-day deadline, seeking condonation for the delay.

She attributed the delay to her attorneys withdrawing. The tribunal found her explanation inconsistent with available correspondence and insufficient.

On the merits, the tribunal found she failed to prove financial dependency at the time of her father’s death.

Documents she relied on:

• A 2014 university paymenttoo old to prove 2021 dependency

• An unfinalised property purchase allegedly intended for her

• 2024–2025 bank statementsirrelevant, as dependency is assessed at date of death

The Ruling

The tribunal emphasised that pension fund trustees have broad discretion when distributing death benefits, provided they conduct a proper investigation and consider relevant factors.

“The fund’s investigation and final distribution were rational, fair, and aligned with the spirit of the Pension Funds Act.”

Modiboa had no reasonable prospects of success.

The Bottom Line

R14.8 million. Minor children. An adult daughter. A 2008 nomination form. And a tribunal that said: the fund got it right.

Modiboa walks away with R1.19 millionand a lesson that dependency is measured at death, not in documents from years past.

{Source: IOL}

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