A 53-year-old woman, Fathima Sayed, has taken her case to the Financial Services Tribunal (FST) after being excluded from her long-term partner’s R21 million provident fund. Sayed was in a 17-year relationship with A Singh, who passed away in July 2021. Despite her claims of financial dependence on Singh, Old Mutual allocated 50% of his provident fund to his two daughters, leaving her without a share.
Sayed argued that she was financially supported by Singh throughout their relationship, including a R700,000 bond settlement, and even moved into his home after selling her own property. She also contended that they intended to formalize their relationship through a non-registered marriage certificate and cohabitation agreement. Sayed felt her financial stability was at risk, despite receiving a R7 million life insurance payout and a monthly allowance from Singh’s will.
However, Old Mutual countered her claim, citing a cohabitation agreement in which Sayed waived her rights to the death benefit. The insurance company also pointed out that she had been provided with substantial financial support, including a monthly allowance of R35,000, a lump sum payment, and an immovable property valued at R1.7 million. Additionally, they highlighted that Sayed had income potential, with support from her son and ex-husband, and a background in education and work experience.
The Pension Fund Adjudicator (PFA) ruled in favor of Old Mutual, acknowledging Sayed as a factual dependent but stating that this did not automatically entitle her to a portion of the death benefit. When the case was brought before the FST, the tribunal considered new evidence that Sayed had received a R5.2 million payout from another pension fund, further solidifying their position that she was financially stable.
In conclusion, the FST upheld Old Mutual’s decision, concluding that Sayed had been adequately supported financially and was in a stronger position than when the initial decision was made. Despite her claims of hardship, the tribunal found no substantial evidence to support her request for additional funds.
