A member of a retirement annuity (RA) fund noticed a discrepancy between the values on his benefit statement and those on Sanlam’s website. An investigation found that the figures on the website were incorrect and the figures on the benefit statement were correct, according to a recent decision by the Financial Services Tribunal (FST).
The values on the website were higher than the values on the benefit statement. The member complained to the Pension Funds Adjudicator, saying Sanlam should be bound to the higher, incorrect figures.
The Adjudicator scolded the RA fund for failing to provide communication to the member that was appropriate, accurate, useful and comprehensive. She said the fund’s conduct was not consistent with the provision of sections 7C and 7D of the Pension Funds Act. For example, section 7D(1)(c) requires a board of trustees to ensure that adequate and appropriate information is communicated to the members and beneficiaries of the fund, informing them of their rights, benefits and duties in terms of the rules of the fund.
But the Adjudicator said the fund member did not suffer any financial loss and therefore dismissed his complaint.
The member asked the FST to reconsider the Adjudicator’s determination.
In its decision, the tribunal said the member knew of the discrepancy, and he knew that only one of the figures could have been correct, which was why he queried the difference.
“To then pick the higher figure and base a claim on it amounts to an attempt to snatch a bargain, knowing full well that the amount was or may have been wrong,” it said.
The Adjudicator was correct in finding that the member suffered no loss.
The FST said the reconsideration application was “frivolous” and dismissed it.
