Can a beneficiary nomination form of a dissolved retirement fund be re-used?


Question:

Can a beneficiary nomination form, from a retirement fund that has been dissolved, be used as beneficiary nomination form for the new retirement fund?

Answer:

Rebecca,

This is a legal question and you should consult a pension fund lawyer for a definitive answer. Typically, the answer will depend on the specific circumstances. So, if the initial pension fund was dissolved and all the assets of the fund were transferred to a new retirement fund, then it is reasonable to assume that the nomination form would "travel" with the assets. Invariably, though, the new fund would have called for new nomination forms, as the form must be addressed to the responsible fund. Certainly, if the fund was dissolved because the company wound up its operations, and employees moved to different employers and transferred their funds to their new employers, then the onus would rest on the individual to submit a new, signed nomination form to the new fund, as required by the Pension Funds Act. In that case, the new fund would not recognise the old form.

Remember also that the final discretion on the distribution of a retirement fund following a member’s death rests with the Trustees. They have an obligation to ensure that, first, all dependents are provided for. The Trustees may refer to the old form to help them identify such dependents.

The information and answers supplied in this section do not constitute advice as defined by the Financial Advisory and Intermediary Services Act, 37 of 2002.


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