The Office of the Pension Fund Adjudicator has found that Tennant Life Benefit Pty Ltd, administrator of the Fidelity Guards Retirement Fund, failed in its duty to adequately trace a beneficiary entitled to pension benefits. The ruling, delivered by Deputy Pension Funds Adjudicator Naheem Essop, determined that Tennant should have employed appropriate tracing methods to locate the complainant, who lost access to his benefit after leaving Fidelity Services Group in May 2024.
Tennant argued that the cost of tracing the former employee exceeded the value of the benefit due, but the adjudicator rejected this reasoning, stressing that administrators are obliged to act in the best interests of fund members regardless of cost considerations. The case highlights ongoing challenges in South Africas retirement fund sector, where beneficiaries often struggle to access funds due to poor administration or inadequate tracing efforts.
The determination reinforces the principle that pension fund administrators must prioritise member rights and ensure benefits are paid, even when administrative costs are high. For South African workers, the ruling serves as a reminder of the importance of oversight and accountability in safeguarding retirement savings.
