Appointing beneficiaries to receive your death benefit when you pass away will ensure Imali Zakho (your money) is paid out speedily. While you may appoint anyone to receive this benefit, the board of trustees must still follow the terms of section 37C of the Pension Funds Act.
This article from Business Tech demonstrates an example of how this rule was applied when the deceased had two wives. One through customary marriage and the other through common-law marriage. Customary marriage is a union that is negotiated, celebrated and concluded in terms of indigenous African customary law. Common law marriage is a union that requires a marital license and ceremony.
He had ten children between his wives and previous relationships. Although the deceased completed a beneficiary form nominating one of the wives and only two children, the board of trustees decided to award the benefit amongst everyone as per the fund rules.
You can watch a short video explaining what happens with your retirement benefit savings death benefit when you die.
You can also read our April Toolkit article with more information on the payment of minor beneficiaries’ benefits.