Unclaimed Benefits is the term used in South Africa to refer to money that already belongs to someone as a member, former member, or beneficiary but that hasn’t been paid out, usually from a retirement or pension fund. This happens when the fund can’t reach the member - maybe contact details changed, they switched jobs, or they didn’t realise they had money waiting. The money is seen as unclaimed if it hasn’t been paid out within 24 months from the date on which it legally became due to the member.
Legislation within the Pension Funds Act and Revenue Laws Amendment Act dictates that funds can’t stay in an active provident fund indefinitely, so the unclaimed benefits have to be transferred into an unclaimed benefit fund.
These funds are established to receive and administer these unclaimed benefits. The benefits could come from various retirement funds where members or beneficiaries have not claimed the benefits that are due to them.
The main purpose of unclaimed benefit funds is therefore to keep the benefits safe while they search for members or beneficiaries to make sure they get the money that is owed to them.
The money stays safely in the fund until the member comes forward to claim it or they are successfully tracked and traced by the unclaimed benefit fund administrators. To make sure that members get what’s theirs, all they need to do is confirm their details with the fund so that the fund can release the benefits owed.
The only purpose of unclaimed benefit funds is to find the members or beneficiaries and pay out the benefit, while limiting the associated costs in the process. Fedgroup’s proactive approach to administering unclaimed funds allows for greater efficiency and reduced costs involved with tracking and tracing those to whom the funds are owed.
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Fedgroup Employee Benefits (Pty) Ltd is an approved administrator. Reg. no. 2008/013532/07. License 13B no. 24/493. Fedgroup Financial Holdings (Pty) Ltd is a licensed controlling company and companies within the Group are authorised FSPs.
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