What is an unclaimed benefit?An unclaimed benefit is any lump sum or pension benefit that is due to a retirement fund member (or his/her beneficiaries) that has remained unclaimed for a period of time. Pension Funds legislation allow funds to transfer their unclaimed benefits to an Unclaimed Benefits Fund. An Unclaimed Benefit Fund is an effective and affordable means of dealing with your fund's unclaimed benefits.
An Unclaimed Benefit Fund provides you with a way to:
- Safeguard the unclaimed benefits of members without adding to your administrative burden
- Help you attempt to trace the members to whom these benefits are payable, and then pay them the benefits they are due
- Free your fund from legal obligation to members with unclaimed benefits
- Invest the unclaimed benefits to protect their value from the effects of inflation until they are paid to their rightful owners
The Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund is governed by the vastly experienced Old Mutual Superfund management board, which consists of eight trustees, six of whom are independent from Old Mutual, as is the Chairman. This ensures that funds transferring unclaimed benefits to this preservation vehicle comply with all governance and legal requirements concerning the management of these benefits. The fund is audited by Price Waterhouse Coopers.
Administration of the Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund is managed via an established Old Mutual administration capability.
Successfully tracing members who are due unclaimed benefits is an important aspect of the effective management and custodianship of these benefits. Through its close working relationship with dedicated tracing service providers, the Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund offers an ongoing member tracing service. The first tracing effort take place immediately on transfer to the fund, after which portions of fund members are targeted for a specific tracing service on a bi-monthly basis. Trustees may also request additional, ad-hoc tracing of specific members at any time.
The entire Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund administration system is focused on ensuring effective risk management. The system has passed the ISAE 3402 review of all processes and every effort is made to automate all processes in order to limit the possibility of human error. The administration process is automated in a seamless application of systems and processes. At a data protection level, the Fund uses two primary data storage facilities and daily back-ups are made to a dedicated disaster recovery centre.
The benefits transferred to the Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund are invested in the Old Mutual Absolute Stable Growth Portfolio. The Absolute Stable Growth Portfolio targets inflation-beating returns over the long term (in excess of ten years), using smoothing to substantially reduce the market volatility experienced by investors.
Value added member services
- Should members or beneficiaries be successfully traced, Old Mutual will advise them of their options in terms of the unclaimed benefits and offer them access to independent financial advice if required.
Value added employer services
- A competitive cost structure that limits cross-subsidies
- Ease of transfer
- No minimum transfer benefit requirement
- A total commitment to service delivery
The Trustees of the Old Mutual Unclaimed Benefits Preservation Pension/Provident Fund are responsible for the management of the Fund. They are appointed by Old Mutual and are obliged to manage the Fund in terms of the rules of the Fund and in accordance with all legislation. The Trustees have to:
- Actively trace members - as this is an unclaimed benefit fund, an additional core function is to trace members.
- Always act in the best interests of the Fund members.
- Respond to disputes and prevent conflicts of interest.
- Know and understand the Fund Rules and laws that affect the Fund.
Our sales consultants are on hand to assist. Please contact one of our regional offices:
- Gauteng: 011 217 1195
- Western Cape: 021 509 1098
- KwaZulu Natal: 031 275 0816
- Eastern Cape: 041 391 6302
The benefits transferred to the Old Mutual SuperFund Unclaimed Benefits Preservation Pension/Provident Fund are invested in Old Mutual’s market-leading Absolute Stable Growth Portfolio, which targets returns above inflation over the long-term (in excess of ten years), while significantly reducing the volatility associated with market-linked investments. The Absolute Stable Growth Portfolio provides investors with an 80% guarantee.
The fund fact sheets are obtained from the respective fund managers and updates are dependent on the fund managers' timeous supply of the fund fact sheets.
Monthly fund fact sheets are generally available the 2nd week following the applicable month-end.
The investment performance report is obtained from the respective fund manager and updates are dependent on the fund manager's timeous supply of the investment performance report. The investment performance report is generally available 4 weeks after month-end and will not contain any benchmark figures.