The Government Employees Pension Fund (GEPF) has provided clarifications regarding the reasons why some pension benefits remain unpaid. Among the main factors hindering payments are the absence of necessary documents, incorrect bank details, and incomplete recipient information.
These clarifications come amid billions of rands in unclaimed pensions remaining unpaid within South Africa's pension industry, with many beneficiaries potentially unaware of their right to receive funds.
GEPF points to several reasons why payments may be delayed, including issues with documentation and fund member data. According to GEPF, 'Unclaimed benefits are those where the reasons for a member's departure from the Fund and their last working day are known, but the benefit has not been paid to the member or beneficiary within 24 months after the last working day in accordance with the Fund's rules.'
The Fund noted that such complexities can prevent payments to legitimate members or beneficiaries, even if the funds are legally due to them.
There are several reasons why payments may not be made. These include:
- Failure to submit or errors in the member exit forms (Form Z102) that must be submitted upon resignation.
- Returns of paid benefits to GEPF due to incorrect bank details, an inactive or frozen bank account, and other circumstances.
- Lack of information held by GEPF, such as about a deceased member, potential spouse, or beneficiaries, which complicates the processing of a claim for benefits.
- SARS' refusal to issue a tax clearance certificate because the tax affairs of the fund member are in unsatisfactory standing.
The Fund stated that it is making every possible effort to ensure payments to legitimate members or beneficiaries, but it cannot always process payments without the necessary information.
In addition to GEPF's current efforts to locate beneficiaries, the fund has begun informing members about unclaimed pensions and how they can assist in ensuring the timely transfer of these funds to rightful owners, as indicated in its newsletter.