Chemical Industries National Provident Fund ordered to resolve long-standing death benefit dispute

The Pension Funds Adjudicator has ordered the Chemical Industries National Provident Fund (CINPF) to resolve a long-standing death benefit dispute and distribute the funds to the deceased member's lawful dependents and beneficiaries. The matter has been pending for nearly nine years after it was lodged in August 2017 by the deceased's mother, who depended on her son for financial assistance.

The deceased worked for Tosasmsp-Tosas (Pty) Ltd and had been a member of the fund since July 2013 until his death in April 2017. At that time, the fund had a balance of over R40,500.

The mother lodged the complaint in June 2025, but the fund remained unable to provide a clear answer about the whereabouts of the money. The fund's administrator initially stated that the deceased was not on their system, but later confirmed that the deceased's mother had been appointed as executor of the estate in May 2017. NBC, a former administrator, had received an email and confirmation of payment from Liberty indicating that a death claim benefit of R394,200 had been paid to CINPF Raubex Group on 11 August 2017.

However, this payment was not made from the fund's system because the distribution resolution was not received before the administration of the fund was handed over to the new administrator, Akani.

The Pension Funds Adjudicator described the board's conduct as "severely deprecated," stating that they provided an interim response almost nine years after the deceased's death and still could not confirm whether a resolution had been passed. The adjudicator emphasized the fund's responsibility for maintaining proper records and ensuring compliance with governance requirements.

The board's failure to maintain basic records and resolve the dispute demonstrated a lack of urgency and accountability. The adjudicator directed the fund to finalize the investigation and distribute the unpaid death benefit, imposing a financial sanction of 10.25% per annum from August 2018 until the date of payment.