The long-awaited pension adjudicator, Professor John Murphy, has taken up office in Cape Town and is hard at work sifting through the flood of complaints about retirement funds which his appointment has unleashed.
Murphy was appointed by Finance Minister Trevor Manuel to deal with the increasing dissatisfaction with the way members are treated by retirement funds.
His appointment offers an avenue of complaint for South Africans, many who have been getting the short end of the stick by large bureaucratic retirement funds.
Murphy says he will be in touch with people who have sent in their written complaints within the next two weeks informing them of the status of their complaint.
Before you can take your pension problem to Murphy you must follow certain procedures. It is important that you do because you have only three years, from the date which you experienced the problem, to report it.
Murphy says anybody who has an interest in a complaint regarding a pension fund is allowed to take the problem to the pension adjudicator. This includes members and former members of pension funds, beneficiaries and employers who participate in pension funds, the Financial Services Board (FSB), the Registrar of Pensions, or even the life companies which invest the money for pension funds.
But not all pension fund members can take their complaints to Murphy. He has jurisdiction only to deal with funds which are registered under the Pensions Fund Act. For example, pension fund members of bargaining councils cannot turn to Murphy for help, and at this stage it is not clear whether government funds and state-aided funds fall under his jurisdiction.
Murphy says he is looking into this issue.
Legislation which created the position for a pension adjudicator is very specific about what you can complain about. Your complaint must relate to one of the following:
* The administration of the fund;
* The investment of the fund's money; or
* The interpretation and application of the rules of the fund.
In addition, your complaint must allege one of the following:
* That the fund made a decision outside its powers;
* That you have been prejudiced as a result of maladministration by the fund;
* That there has been a dispute of fact or law; or
* That your employer has not fulfilled its duty in terms of the pension fund's rules.
Once you have established that your complaint falls within the adjudicator's ambit, you should follow the correct procedure to enable Murphy to deal with your problem as quickly as possible.
It is vital that you first lodge your complaint with your pension fund or employer.
Legally the fund or employer has 30 days in which to respond to your complaint and you should receive a written reply. Only then should you raise the problem with Murphy.
He says a potentially huge pension claim against a major South African company came to a grinding halt because the pensioner had not first taken up the problem with the pension fund. The company will simply tell Murphy that he has no jurisdiction over the matter.
Your complaint must be in writing and Murphy has stressed that he will not take your call until he has received your letter or fax.
Once you have sent in your complaint and all the necessary supporting documentation, he may arrange a meeting between yourself and a representative of your pension fund.
If you intend to have legal representation for this hearing, you should notify the adjudicator's office in advance.
After this, Murphy will make his decision, which either party has the right to take to the High Court on appeal within six weeks.
If the matter does not go to appeal, his decision, which carries the same authority as a court order, will be binding.
CHECKLIST FOR YOUR COMPLAINT:
* Don't forget the basics. Supply full personal details including your employment history and how long you have been a member of the fund.
* Provide contact details for your pension fund and employer.
* Concerning the complaint itself, make sure it falls within the pension adjudicator's powers and then be sure to give full particulars about the complaint.
* Supply proof that you have submitted your complaint to your pension fund or employer by attaching a registered letter slip or fax confirmation sheet.
* Attach the reply you have received from your pension fund or employer regarding your complaint or state you have not received a reply within the 30-day period of grace.
* If possible, provide the pension adjudicator with a comprehensive copy of the rules of the pension fund of which you are a member.
* Supply proof that the pension fund has been registered under the Pensions Fund Act.
* And lastly, but very importantly, spell out what you want. In other words, what do you regard as a solution to the problem?