Pension fund must pay compensation for delay in resolving a complaint
A pension fund which claimed monthly pension payments were rejected due to a bank technical error has been ordered by the Pension Funds Adjudicator (PFA) to pay a penalty of R5000 to the member for delays in resolving the matter.
The complainant was a member of the Motor Industry Provident Fund from July 1997 until his retirement. He is a pensioner and was in receipt of a monthly pension from the fund from March 2017.
He submitted that he did not receive his monthly pension from the fund for August 2024 to February 2025. He provided proof of his bank account and submitted that the information was previously provided to the fund.
The fund submitted that in August 2024, the monthly payment was rejected due to a technical error with the member’s bank account, which resulted in missed payments for August 2024 to February 2025.
The fund said it attempted to backpay the missed payments of R72 394.55. However, the payment was rejected by his bank. The fund required a confirmation letter from the bank in order for the back payment to be processed.
On 21 October 2025, the fund was provided with proof of the member’s bank details. On 12 November 2025, the fund stated that it would follow up on the payment, but no further response was received.
In a determination, the PFA said the complainant is a pensioner and was being prejudiced by the fund’s failure to resolve the matter.
The PFA found the fund’s behaviour “reprehensible”. Therefore, in addition, to paying the member back payment of R72 394.55 plus interest, the fund was ordered to pay compensation in the amount of R5 000 for failing to attend to the complaint timeously and the resultant inconvenience.
