Kaplan and Katz NNO and Another v Proffesional and Executive Retirement Fund and Another (292/97) [1999] ZASCA 27; [1999] 3 All SA 1 (A) (14 May 1999)

Kaplan and Katz NNO and Another v Proffesional and Executive Retirement Fund and Another (292/97) [1999] ZASCA 27; [1999] 3 All SA 1 (A) (14 May 1999)

The Supreme Court of Appeal held that section 37C(1) of the Pension Funds Act overrides any beneficiary nominations made in terms of the fund rules. The statutory scheme requires that benefits payable on the death of a member be allocated among dependants as deemed equitable by the person managing the fund, irrespective of any nominations or contractual arrangements. The court found no basis for limiting the application of section 37C(1) only to benefits that would otherwise fall into the estate. Furthermore, the court rejected the argument that Liberty Life, as a delegee, could not delegate the allocation function to an employee. It held that a company, acting as fund manager, must...

Citation
[1999] ZASCA 27
Parties
Appellant: Mark Oliver Kaplan; Appellant: Merle Sandra Katz NNO; Respondent: The Professional and Executive Retirement Fund; Respondent: The VIP Retirement Annuity Fund; Respondent: Liberty Life Association of Africa Ltd
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
14 May 1999
Case Number
292/97
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeal dismissed with costs.
Judges
Hefer, Grosskopf, Howie, Plewman, Streicher
Legal Topics
Pension Funds Act, Nomination of Beneficiaries, Statutory Override, Delegatus Delegare Non Potest
Banking and Finance Civil Procedure Pension Funds Act Nomination of Beneficiaries Statutory Override Delegatus Delegare Non Potest

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

Mark Oliver Kaplan

Appellant

Merle Sandra Katz NNO

Appellant

The Professional and Executive Retirement Fund

Respondent

The VIP Retirement Annuity Fund

Respondent

Liberty Life Association of Africa Ltd

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether section 37C(1) of the Pension Funds Act overrides valid beneficiary nominations made in terms of fund rules.
  2. 2 Whether Liberty Life, as fund manager, lawfully delegated the allocation of benefits to an employee.

Ratio Decidendi

The Supreme Court of Appeal held that section 37C(1) of the Pension Funds Act overrides any beneficiary nominations made in terms of the fund rules. The statutory scheme requires that benefits payable on the death of a member be allocated among dependants as deemed equitable by the person managing the fund, irrespective of any nominations or contractual arrangements. The court found no basis for limiting the application of section 37C(1) only to benefits that would otherwise fall into the estate. Furthermore, the court rejected the argument that Liberty Life, as a delegee, could not delegate the allocation function to an employee. It held that a company, acting as fund manager, must...

Court Disposition

Appeal dismissed with costs.

Orders

  • The appeal is dismissed with costs.
  • No order is made for the costs of two counsel.