IF YOU re-marry after a divorce, make sure your pension fund administrator knows about it because it might not recognise your new spouse when benefits have to be paid out.

The Pension Fund Adjudicator, Muvhango Lukhaimane, has recently dismissed a claim from an aggrieved woman who felt she was entitled to the pension payout after the death of her husband.

The pension fund did not know she existed and paid a portion of the fund to the wife from whom he was divorced.

This is because the deceased had failed to inform the pension fund of the existence of his second wife as is required by the rules of the fund.

Ben Bhad divorced his former spouse in December 2007 and two years later married the complainant.

Bhad did not notify the pension fund or his former wife about the change in his marital status and the ex-wife had not claimed her 50% benefit from the fund after their divorce.

Bhad was employed at Sasol Group Services from May 1991 until May 2007 when he retired due to ill health.

He died in August last year.

Upon Bhad's death, the first wife and their child received his pension fund.

The aggrieved second spouse later lodged a claim with the Pension Fund Adjudicator with the hope that it would reconsider and rule in her favour.

Although she had all the documents to prove she was married to Bhad, the Sasol Pension Fund's board and the Pension Fund Adjudicator ruled in favour of the first wife.

This was done in terms of the rules of the Sasol Group Pension Fund. The Sasol Group said the beneficiaries paid were the qualifying spouse and child in terms of their rules.

Their rules define a "qualifying spouse" as any person who, at the date of the member's death or the pensioner's retirement was a legal spouse of a member or pensioner.

They said a "qualifying child" in terms of the rules is a child who was financially dependent on the member immediately before his death.

Sasol Group said the deceased and his former spouse were still married when he went on retirement and is the qualifying spouse in terms of their rules and their 10-year old offspring is the qualifying child.

In her determination, Lukhaimane said Section 37C of the Pension Funds Act governs the disposition of death benefits.

She said this section places a duty on the board of management to identify the beneficiaries of a deceased member and also gives the board discretionary powers on the proportions and manner in which the proceeds of the death benefit are distributed.

Lukhaimane said the rules of the Sasol Group Services made it clear who the qualifying spouse is. However, the deceased failed to inform the first wife of his marriage to the second one as required in terms of the Pensions Fund Act, Lukhaimane said.

This would have allowed the first wife at the time to make an informed decision about her share of the pension.

"Therefore, the deceased's former spouse who was his legal spouse at the date of his retirement is the 'qualifying spouse' in terms of Sasol Group's rules."

She said the board was not aware of the existence of the second wife and did not allocate part of the death benefit to her.

"The death benefit was paid in terms of the rules of the first wife in the Act.

"Therefore, the complaint should be dismissed," said Lukhaimane.

l The Office of the Pension Funds Adjudicator was established to resolve disputes fairly, economically and expeditiously.

The adjudicator's office investigates and determines complaints of abuse of power, maladministration, disputes of fact or law and employer dereliction of duty in respect of pension funds.

The OPFA is situated in Pretoria, Gauteng.

The Pension Fund Adjudicator can be reached at 012-748-4000/4008 Fax: 086-693-7472 or e-mail your compliant to enquiries@pfa.org.za