The pension fund faced harsh criticism after the Pension Arbitrator described it as a shocking management failure, as the claim for a death benefit submitted nearly nine years ago had not been resolved.
Pension Arbitrator Lebogan Mogashoa ordered the National Chemical Industry Fund (CINPF) to complete an investigation into this benefit and disburse it to the legal dependents and beneficiaries of the deceased fund member.
This decision followed a complaint filed in June 2025 by the deceased's mother, who was a pensioner and financially dependent on her son for groceries, medical expenses, and insurance policies.
The deceased, who worked at Tosasmsp-Tosas (Pty) Ltd, was a fund member from July 2013 until his death in April 2017. At the time of his passing, the fund account held over 40,500 Rand.
The death benefit claim was filed on August 2, 2017, but almost nine years later, the fund still could not provide a clear answer regarding the fate of these funds.
The fund informed the arbitrator that its administrator conducted a check after receiving the complaint but found that the deceased was absent from the fund's system.
In November 2025, the current fund administrator stated that he contacted former administrators Akani and NBC to determine if the deceased was registered in their systems, to ascertain the status of the death benefit claim, establish the results of any investigations concerning potential dependents and beneficiaries, and to find out whether the benefit had been paid.
Akani subsequently confirmed that the deceased was not listed in his system, but NBC had received the death benefit claim in August 2017.
It was also revealed that the deceased's mother was appointed as the executor of the deceased's estate in May 2017.
Furthermore, NBC received an email and payment confirmation from Liberty dated August 2017, indicating that the death benefit claim of 394,200 Rand was paid to CINPF Raubex Group on August 11, 2017.
However, NBC reported that the payment was not made from its system because the distribution resolution authorizing the disbursement of the death benefit had not been received by the time control was transferred to Akani.
Subsequently, the fund stated that it was trying to ascertain whether a distribution decision had ever been made in 2017. The fund noted that if no such decision existed, the trustees should have discussed the matter and determined how the death benefit should be distributed.
Criticism of Fund Management
Mogashoa sharply criticized the fund's handling of the matter. He characterized the board of directors' conduct as 'seriously reprehensible,' noting that the fund only provided a preliminary response on December 8, 2025—nearly nine years after the deceased's death—and still could not confirm whether any decision had been made.
Moreover, the fund failed to provide the arbitrator with the results of its investigation or a resolution to the long-standing dispute.
In Mogashoa's view, this demonstrates a serious lack of urgency and accountability on the part of the fund's board of directors.
He emphasized that the change of administrators, including NBC, Akani, and Momentum, cannot serve as an excuse for the fund's inability to establish whether the benefit was paid.
The arbitrator reminded the board of directors that it remains responsible for managing the fund in accordance with the law and ensuring proper records, books, and documentation. This includes maintaining minutes and resolutions pertaining to the fund's decisions.
Mogashoa also dismissed any suggestion that responsibility could be shifted to the administrators. He stated that while the board of directors may delegate certain functions to administrators, such delegation does not absolve the trustees of their responsibility or duty to ensure proper documentation is kept.
The absence of minutes, resolutions, and other records related to the death benefit indicates that, according to Mogashoa, there might be a systemic failure in complying with legislative requirements for governance. He added: 'Perhaps more alarming is the fact that the board of directors' conduct also implies that the fund's records may not be kept in accordance with the intent of the Act.'
He continued: 'This is because the fund, regardless of the administrator, apparently has no record indicating whether the benefit in question was paid.' Mogashoa noted that the inability to maintain such basic documentation contradicts the management duties imposed on the board of directors by legislation and other governance requirements.
Having reviewed the evidence presented, the arbitrator found that the mother met the burden of proof, and that, on a balance of probabilities, the death benefit remained unpaid. Consequently, the fund was ordered to complete the investigation and distribute the death benefit among the deceased's dependents and beneficiaries. Furthermore, the fund was subjected to a financial penalty, accruing interest at a rate of 10.25% per annum from August 2018 until the date of payment.
