n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - An examination of the accurate application of the dependency test under the Pension Funds Act 24 of 1956 : case comments
|Article Title||An examination of the accurate application of the dependency test under the Pension Funds Act 24 of 1956 : case comments|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Author||Mtendeweka Owen Mhango|
|Publication Date||Jan 2008|
|Pages||126 - 135|
In 1976 the Pension Funds Act 24 of 1956 was amended with the inclusion of s 37C. This section regulates the payment of any benefit payable upon the death of a member of a pension fund organization. It overrides the freedom of testation and confers that power to the trustees of a pension fund. Effectively, in terms of s 37C, the needs of dependants of the deceased member of a pension fund are the prime consideration in deciding how his or her retirement savings should be distributed. The aim was to prevent dependants of a deceased pension fund member from being left destitute and without financial support (for a discussion of the purpose and rationale of s 37C, see, eg, Tukishi Manamela 'Chasing Away the Ghost in Death Benefits: A Closer Look at Section 37C of the Pension Funds Act 24 of 1956' (2005) 15 SA Merc LJ 276).
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