FAQ Pension and Provident Funds

Pension and Provident Funds

Q Can my employer attach benefits if I owe the Company money?

The employer may not attach your pension, provident or retirement fund benefits except for very specific circumstances – such as where there has been fraud or theft, or where the loan has been taken out for the purposes of using it to buy or repair a home.

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Q Can I leave my fund benefits to anybody when I die?

s37C of the Pension Funds Act regulates the payment of Pension fund benefits.

Although you may nominate a beneficiary s37C allows your nomination to be overridden in favour of one or more of your dependents.

 

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Comments

FAQ Pension and Provident Funds — 2 Comments

  1. My daughter dies from cancer last year, she was financially very badly off, and she had three children and was divorced from the father of the children for about 10 years. She had a provident fund at work as well as a funeral policy to pay for her funeral. Her very wealthy ex-husband has gone and claimed the funeral policy(even thought he was not the nominee) and is now paying the school fees of the children out of the providend fund. Surely in this case the provident fund should be left in trust for the children? The ex-husband is now benefitting from the providend fund, since he now doesn’t have to contribute to the wellfare of his own children anymore, even though he was a lot more wealthy than my daughter. I’m just wondering if any of this is legal, and what route should we take if it is not.

    Karin