The Government Employees Pension Fund (GEPF) has provided clarifications regarding the reasons why pension benefits may remain unpaid. These explanations come amid reports that South Africans are owed billions of rand in unclaimed payments within the pension fund industry, with many beneficiaries unaware of their right to these funds.
GEPF stated that several factors hinder benefit payments, including issues with documentation and member information. These complications can prevent the fund from making payments to legitimate members or beneficiaries, even if the funds are legally due to them.
There are several reasons why payments might be delayed. Firstly, the member exit forms (Form Z102), which must be submitted upon leaving the Fund, were either not submitted or contained uncorrected errors.
Secondly, paid amounts are returned to GEPF due to incorrect bank details, the existence of an inactive or frozen bank account, and other similar circumstances.
Furthermore, GEPF may lack sufficient information, such as details about a deceased member, potential spouse, or beneficiaries, which complicates the processing of a claim for benefits. Another reason could be the refusal of the SARS tax authority to issue a tax directive because the member's tax affairs are in unsatisfactory condition.
The Fund emphasized that it is making every possible effort to ensure payments to legitimate recipients, but without the necessary information, it cannot always process payments.
In addition to current efforts to locate beneficiaries, GEPF has begun informing fund members about unclaimed payments and how they can assist in ensuring these funds reach the rightful owners, according to the fund's communication in its newsletter.