The Pension Fund Adjudicator’s decision in the matter of Mahomed v Argus Provident Fund  JOL 35406 (PFA) dealt with the allocation and distribution of a death benefit.
The main issue in dispute was whether or not the intended payment of the benefit, in the form of the purchase of an annuity, was lawful and equitable. This instead of any other form or method of payout.
The complainant’s mother was a member of the respondent’s provident fund at the time of her death. The fund’s trustees allocated the death benefit equally between the complainant and her sister, namely the deceased member’s two children. The trustees made a further provision for a portion of the allocated benefits to be transferred into an annuity to provide a monthly income for the beneficiaries.
The complainant lodged a complaint with the adjudicator disputing the allocation based on the premise that she had been a nominated beneficiary and the fact that she had not consented to the purchase of an annuity with a portion of her benefit.
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