The duty to effect an appropriate mode of payment to minor pension beneficiaries under scrutiny in death claims

This note will focus on the third mode of payment, which is payment into a trust arrangement in favour of a minor beneficiary as contemplated in terms of section 37C (2) of the Act. The problem with this mode of payment is that sometimes it entails a decision by the board on whether or not a parent or guardian should be deprived of the right to administer benefits on behalf of minor beneficiaries. It is important to point out that the Financial Services Laws General Amendment Act 22 of 2008, which was promulgated on 30 September 2008 to amend section 37C of the Act, has introduced a new concept of a pension fund organisation known as a beneficiary fund. Accordingly, the beneficiary fund is a pension fund organisation which is regulated under the Act.