Are you eligible for unclaimed benefits? Here’s how to check

Could you be one of the South Africans entitled to a share of the estimated R89 billion in unclaimed benefits held by financial institutions? Do you know how to check if you are?

Unclaimed benefits are financial assets or payouts not collected by the rightful recipient within a specified time frame, Sarah Nicholson, operations manager at JustMoney, says.

These unclaimed benefits include:

• Retirement and pension-related benefits, such as unclaimed pension and provident funds, retirement annuities, preservation funds and unpaid death or disability benefits.
• Insurance payouts that include life insurance claims, funeral policies, endowment policies and income protection benefits.
• Investment and bank accounts, such as dormant bank accounts, unit trust investments, estate funds, bonds, unclaimed shares and dividends. For example, you may unknowingly hold shares through a BEE scheme at a former workplace.
• Employee and government benefits, that include workplace compensation, Unemployment Insurance Fund (UIF) benefits, state social grants and education funds.

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Why are benefits unclaimed?

“Many people do not know they are entitled to these assets or payouts or forget to claim them. The beneficiary’s contact details may be out of date, or the beneficiary may have passed on before telling their family about the money,” Nicholson says.

In some cases, employers did not provide complete member information and funds may not adequately inform members leaving their jobs about claiming benefits, she says.

“Other obstacles may include poor administration and record-keeping, as well as challenges for foreigners who want to claim benefits after leaving the country. In other cases, beneficiaries may not have the correct documents to prove their identity or their relationship to the original beneficiary.”

Failing to claim your benefits means you miss out on money that could provide immediate financial relief, help pay off debt, contribute to savings goals, or make your retirement more secure.

In addition, leaving assets unclaimed for a lengthy period means their value could diminish due to poor investment performance, Nicolson warns. Financial institutions’ administrative costs for record-keeping, storage and legal fees can also erode asset value.

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How to check if you are eligible

There are several ways to check if you are entitled to unclaimed benefits:

• Ask your employer or HR department. Former employers may have records of retirement contributions and will direct you to the relevant fund administrator.
• Ask the Financial Sector Conduct Authority (FCSA). The Registrar of Pension Funds has a central database on the FSCA website, with an unclaimed benefits search tool. All you have to do is enter your ID number and personal details to check if you or another person on whose behalf you enquire, have benefits due. If you have a match, you receive the fund’s or administrator’s contact details. You then contact them directly and follow their claims process. You can check here.
• Enquire at the Johannesburg Stock Exchange (JSE). South African companies hold about R4.5 billion in unclaimed dividends, according to the JSE. Search the JSE’s Claim It site here to identify unclaimed dividends or funds. However, remember that this search includes only those companies participating in Claim it, such as Old Mutual, Sasol and Growthpoint Properties.
• Tracing companies and tools. Verifi is an online tool providing an overview of life insurance and investment policies. This service is available free to South Africans once a year here.
• Department of labour. Check for UIF benefits on the department of employment and labour website (www.labour.gov.za) or visit a labour centre near you.
• Association for Savings and Investment South Africa (ASISA). Financial institutions that are ASISA members paid R22.7 billion of formerly unclaimed assets to policyholders, beneficiaries, investors, and heirs in 2021. Have a look here.

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What you need to claim unclaimed benefits

You must check what documentation is needed with the fund administrator or FSCA. In addition to the completed claim form, ID, contact details, proof of address and banking details, you may need a copy of a payslip or other proof of employment and proof of contributions, to verify past employment linked to the fund.

When claiming as a spouse, you will need a certified copy of the deceased member’s death certificate and your marriage certificate. When claiming as an estate executor, you will require a copy of the will and a letter of authority from the Master of the High Court. Dependents’ birth certificates will be needed when claiming on behalf of minor children.

“Being organised, gathering the necessary documentation, and keeping records of correspondence are key to claiming what’s rightfully yours. It is also worth getting advice from a financial adviser or planner on how best to allocate or invest the money,” Nicholson says.