Question:
I received a text from a tracing company that I have been identified as possibly due for a “Surplus Apportionment” from the Sanlam Unclaimed Benefits Preservation Pension Fund. When I called they initially requested all relevant documents relating to my mother as she was a member. When I made a follow up a few days later I was informed that she does not qualify as the because she passed prior to 2003. The consultant was very vague and provided no further information. Was the law amended in 2003? If so what happens to the funds?
Answer:
Linda, The estate of a person who died prior to the surplus apportionment date is not entitled to a share of the surplus distribution, whereas an estate of a person who died after the surplus apportionment date may receive the surplus windfall in respect of the deceased. In this case the surplus apportionment was after 2003, so your mother's estate does not qualify for a share. As to what happens with the money, you should see the surplus as a pot of excess money (reserves) that needs to be apportioned to members who did not receive their full benefit when they left the fund. As your mother's estate does not qualify, her 'share' is effectively re-distributed among the members who do qualify.
