Suren Naidoo
3 minute read
17 Nov 2020
8:27 am

Landmark legal victory

Suren Naidoo

The court ruling allows them to use this money in other ways if they can’t find the member.

Image: iStock

A watershed ruling by the Supreme Court of Appeal (SCA) in Bloemfontein on November 2 represents a positive upshot for pension funds in South Africa and could see members benefitting from billions of rand in unclaimed funds. Pension funds have been legally challenging the prescriptive Regulation 35(4) addition to the Pension Funds Act (PFA) around actuarial surpluses and contingency reserve accounts for years. Now a trio – Hortors Pension Fund, Southern Sun Group Retirement Fund and the Vrystaatse Munisipale Pensioenfonds – have won their respective cases on the matter, which were heard jointly at the SCA in August. The court...