Marriage is not enough to claim pension payout, estranged wife told

A pension fund is entrusted with a duty to investigate and identify dependents of a deceased who may qualify for a share of the death benefit, and has discretion to decide the ratio of how to split it based on a needs analysis.

This was spelled out in a ruling issued on Tuesday by the Financial Services Tribunal (FST), heard by judge Louis Harms and advocate William Ndinisa.

Ntaba Mate, who died on December 13 2022, was a member of the Old Mutual Superfund Provident Fund. Five beneficiaries were identified: Pamela Xoliswa Mate, his legal wife from whom he was estranged, his girlfriend of 15 years Mpumelelo Dameni, two children from his marriage and his sister.

The fund decided 65% of the death benefit should go to Dameni, and the remainder to the children, who are attending tertiary institutions.

The decision was challenged by his wife on the grounds she was a legal dependent by virtue of marriage to the Pension Funds Adjudicator and after losing there, to the FST.

The records show  the fund determined the money at stake was not sufficient to cater for the current and possible future financial needs of all five dependents.

It considered the needs of financial support and educational costs of the two children and the deceased's partner, who was 60 years old, had lived with him until his death, was unemployed and fully dependent on him.

The wife had been separated from him over a long period and they had not shared a common household for a number of years. She is employed and has no disability or illness that would prevent her from not being able to work in the future.  

In disputing her exclusion by Old Mutual and the adjudicator, the wife said the award of most the payout to the mistress was irrational, unfair and wrongful. She argued Dameni had "reached 60 years of age and therefore she is entitled to receive a government pension".

The tribunal, however, found the decision on the payout to be fair.

"Being married to the deceased alone, without proof of financial dependence, as in this matter, does not automatically entitled the applicant to a portion of the death benefit. After having considered the record and the submissions of the parties, we find no legal basis to interfere with determination of the Pension Funds Adjudicator."

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