R44 billion unclaimed pension funds owed to 4.5 million South Africans according to recent announcements from Financial Sector Conduct Authority (FSCA).
- The retirement fund benefits which has not been claimed within 24 months are normally referred to as unclaimed pension funds.
It’s reported that the South African pension fund department currently have more than 1.2 million active members, more than 450 000 pensioners and beneficiaries, and assets worth more than R1.61 trillion.
R44 billion unclaimed pension funds owed to 4.5 million South Africans
Many retired South African who were previously contributing to the Government Employees Pension Fund (GEPF) have not done anything yet in order to have benefits paid to their bank accounts. It’s important to note that the government will not in anyway use your unclaimed retirement fund or freeze it, the money will be allocated and be placed under the Unclaimed Benefits Fund category while they wait for it to be claimed.
The main purpose of Government Employees Pension Fund is to protect the wealth of their members and pensioners, by safeguarding their retirement benefits through proper administration and prudent investment.
Way Forward
The unclaimed benefits from the pension funds can exist for a number of reasons, could be either members did not tell dependents about these benefits or a responsible person is not aware of the claiming procedure.
In the 2024 Budget speech delivered by Minister of Finance, South African workers who contribute to a retirement fund will be able to withdraw a portion of their retirement savings. The new Pension Fund Laws will allow members to officially withdraw some of the money starting from the 1st of September 2024.
Members are encouraged to do everything under the Financial Sector Conduct Authority (FSCA) website ”https://www.fsca.co.za/” regarding the unclaimed pension funds amounting to R44 billion owed to over 4.5 million South Africans.
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If you believe or have a doubt that your deceased parent or family member who was contributing to the retirement pension fund still have unclaimed benefits, we urge you visit the Government Employees Pension Fund offices and they will assist you concerning that.
