Fundsatwork Umbrella Pension Fund v Guarnieri and Others (830/2018) [2019] ZASCA 78; 2019 (5) SA 68 (SCA) (31 May 2019)

Fundsatwork Umbrella Pension Fund v Guarnieri and Others (830/2018) [2019] ZASCA 78; 2019 (5) SA 68 (SCA) (31 May 2019)

The Supreme Court of Appeal held that the proper construction of s 37C(1)(a) of the Pension Funds Act requires the board of a pension fund to identify dependants at the time the distribution decision is made, not at the date of the member's death. A person who dies before the distribution is made ceases to be a dependant and cannot participate in the distribution of the death benefit. The board's allocation of a portion of the death benefit to Mrs Guarnieri Snr, who had died before the distribution, was contrary to the statutory scheme and invalid. The board was obliged to distribute the outstanding balance to the surviving dependants. The appeal was dismissed, and the costs order...

Citation
[2019] ZASCA 78
Parties
Appellant: Fundsatwork Umbrella Pension Fund; Respondent: Anna Marie Guarnieri; Respondent: Alberto Jacomo Guarnieri; Respondent: Maxine Guarnieri; Respondent: MMI Group Ltd; Respondent: Steffanutti Stocks (Pty) Ltd; Respondent: Pension Funds Adjudicator
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
31 May 2019
Case Number
830/2018
Procedural Posture
Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Cachalia, Wallis, Mbha, Mocumie, Eksteen
Legal Topics
Pension Funds Act, Distribution of Death Benefits, Definition of Dependant, Judicial Review of Fund Decisions
Banking and Finance Civil Procedure Pension Funds Act Distribution of Death Benefits Definition of Dependant Judicial Review of Fund Decisions

Case Brief

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Parties

Fundsatwork Umbrella Pension Fund

Appellant

Anna Marie Guarnieri

Respondent

Alberto Jacomo Guarnieri

Respondent

Maxine Guarnieri

Respondent

MMI Group Ltd

Respondent

Steffanutti Stocks (Pty) Ltd

Respondent

Pension Funds Adjudicator

Respondent

Procedural Posture

Civil Appeal / Appeal From Gauteng Division of the High Court, Pretoria

Legal Issues

  1. 1 Whether a person who dies before the distribution of a pension fund death benefit qualifies as a dependant under s 37C(1)(a) of the Pension Funds Act.
  2. 2 At what point in time must dependants be identified for the purpose of distributing a death benefit under the Pension Funds Act.
  3. 3 Whether the board of the pension fund acted lawfully in allocating a portion of the death benefit to a deceased person.

Ratio Decidendi

The Supreme Court of Appeal held that the proper construction of s 37C(1)(a) of the Pension Funds Act requires the board of a pension fund to identify dependants at the time the distribution decision is made, not at the date of the member's death. A person who dies before the distribution is made ceases to be a dependant and cannot participate in the distribution of the death benefit. The board's allocation of a portion of the death benefit to Mrs Guarnieri Snr, who had died before the distribution, was contrary to the statutory scheme and invalid. The board was obliged to distribute the outstanding balance to the surviving dependants. The appeal was dismissed, and the costs order...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed with costs, such costs to include those consequent upon the employment of two counsel.
  • The board of the Fund is obliged to distribute the outstanding balance of the death benefit to the surviving dependants in proportions to be determined by the board.