Pension Fund Drama: Woman Loses Case Over R21 Million Provident Fund

A 53-year-old woman who was in a 17-year relationship with a man has lost her bid to claim a portion of his R21 million provident fund. The woman, Fathima Sayed, challenged the decision of Old Mutual Superfund Provident Fund after her late partner, A Singh, allocated his death benefit equally to his two daughters.

Details of the Case

After Singh’s death in 2021, Sayed argued that she was financially dependent on him during their relationship and was therefore entitled to a share of his provident fund. She presented evidence of their cohabitation and financial interdependence, including a non-registered marriage certificate and a cohabitation agreement signed in 2017.

However, Old Mutual maintained that the cohabitation agreement explicitly waived Sayed’s rights to any pension benefits. Furthermore, the insurer highlighted other financial support she had received, including:

• A R7 million life insurance payout.
• R35,000 monthly from Singh’s will, later converted to a lump sum.
• A property valued at R1.7 million.

Old Mutual also noted that Sayed had other income sources, including monthly payments from her son and her ex-husband.

The Pension Fund Adjudicator initially dismissed Sayed’s claim, stating that recognition as a factual dependent does not guarantee entitlement to death benefits.

When Sayed appealed to the Financial Services Tribunal (FST), new evidence showed she had received R5.2 million from another pension fund. This reinforced the conclusion that Sayed was sufficiently provided for and did not require additional financial support.

The FST dismissed her application, ruling that Sayed had failed to prove financial hardship and was in a stable financial position.

The tribunal’s decision underscores the importance of legal agreements and explicit terms in financial arrangements. While cohabitation and dependency may influence claims, they do not automatically guarantee entitlement to pension benefits, particularly when other financial provisions exist.

This case serves as a reminder of the importance of formalising financial arrangements and understanding the legal implications of cohabitation agreements.

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