In a gripping case of family conflict, inheritance, and pension funds, Boikano Siphiwe Sibanda found himself battling Old Mutual over a death benefit that should have been rightfully his. The saga began when Sibanda’s mother passed away in January 2008, leaving him as a minor at the time. His mother had been employed at Pick ‘n Pay and was a member of the Saccawu National Provident Fund, which entailed a death benefit that would be divided between Sibanda and his grandmother.
According to the initial resolution, Sibanda was entitled to 90% of the death benefit, with the remaining 10% allocated to his grandmother. However, confusion arose when Old Mutual trustees decided to direct the full benefit to the Guardian Trust, including Sibanda’s share, even though the minor was entitled to a portion of the payout. This led to a formal complaint from Sibanda, arguing that his grandmother was wrongfully awarded the full benefit, despite the clear allocation in the trust agreement.
Sibanda’s complaint was initially taken to the Pension Funds Adjudicator (PFA) in 2024. However, the PFA rejected his case, ruling that the complaint had been lodged too late, more than three years after Sibanda should have been aware of the error. According to the PFA, Sibanda’s claim was time-barred, as the issue of the benefit’s distribution should have been raised before November 26, 2023, when the three-year prescription period expired.
Refusing to accept this dismissal, Sibanda took his fight to the Financial Services Tribunal (FST), hoping for a change in fortune. The case was heard by Advocate Aasifa Saldulker, who reviewed the evidence carefully. Saldulker agreed with the PFA’s ruling, pointing out that the applicable prescription period began when Sibanda turned 18, which was in November 2020. Without evidence to prove that the complaint had been made before the deadline, the tribunal confirmed that Sibanda had missed the window to challenge the decision.
As a result, Sibanda’s application was dismissed once again, leaving him disillusioned and without the funds that should have been his. This case serves as a cautionary tale about the complexities of pension schemes and the importance of acting quickly in legal disputes, especially when it comes to family inheritance matters.
