How does surplus money become available and were can I claim it?

Question:

How does surplus money become available and where can I claim it

Answer:

Hi Tshifhiwa, in a defined contribution fund the surplus (if any) constitutes the assets in excess of the total sum of the individual shares of the members. In a defined benefit fund, surplus is calculated by the actuary as the excess of assets over the actuarial liabilities of the fund, on the basis of actuarial assumptions. The Act provides for the distribution of actuarial surplus to:

1. Former members, if upon leaving the fund after 1 January 1980 and they received less than their full share of the fund or actuarial reserve. They may be entitled to receive the difference between the benefit that they actually received and their full share of fund or actuarial reserve at the time, together with interest calculated to the present day. 2. Pensioners receiving an income from the fund, and deferred pensioners if the pensions have not been increased to counteract inflation since their retirement.

You need to check with the administrators of the retirement fund you belonged to and find out whether they expect to have/had a surplus distribution and whether you qualified for a share.