In a decision which once again confirms the rights of pension funds to prioritise the financial needs of dependants over inheritance claims, the Financial Services Tribunal ruled in favour of a widow being the beneficiary of her late husband’s R7.6m pension.

According to The Star, the widow, identified as Mrs G, faced the wrath of her two stepsons after they lost out on receiving a portion of their late father’s pension.

They turned to the tribunal and asked it to reconsider the Pension Fund Adjudicator’s determination to uphold the allocation of a death benefit by the Old Mutual Superfund to their stepmother. 

The complaints of the sons – both adults – are that the fund failed to consider their needs.

The fund said it had conducted a dependency investigation and exercised its discretion, which the adjudicator upheld.

The tribunal said the fund is enjoined to investigate and ensure an equitable allocation of the death benefit to beneficiaries.

The fund is required to consider factors, such as the age of the dependants, their relationship with the deceased, the extent of the dependency and the wishes of the deceased. 

The fund identified potential dependants, assessed their financial circumstances and exercised its discretion to allocate the entire death benefit to the widow.

The tribunal found even if the matter was referred back to the fund, it was unlikely to allocate the funds differently.

Full report in The Star