Retirement death benefit: fund trustees can override deceased member’s instructions

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Johannesburg - According to the 2015/2016 annual report from the Office of the Pension Funds Adjudicator, the allocation of death benefits constituted the largest number of resolved cases.

In the unfortunate situation where a member of a retirement or provident fund passes away, there’s no guarantee that the nominated beneficiaries will receive a cash payout as per the wishes of the deceased.

Preenay Sathu, channel head at FNB Financial Advisory, says by law, the trustees of the retirement fund can override the wishes of the deceased despite the fact that the deceased may have nominated beneficiaries of their choice.

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