More pensioners now collecting their benefits

Unclaimed pension benefits for the quarter-ended 30 June 2022, declined to $4,3 billion, compared to $4,4 billion reported as at 31 March 2022, according to the Insurance and Pension Commission (IPEC).

Total membership with unclaimed benefits for the period was about 106 000, compared to about 146 000 as at 31 March 2022.

The decline in unclaimed benefits was due to payments made to members as well as transfers to the Guardian Fund by some funds. This was also attributed to proper classification of members following the issuance of the Revised Guideline on Unclaimed and Suspended Pensioners and the introduction of the revised reporting template.

IPEC recently came up with new guidelines to reduce the prevalence of unclaimed pension benefits and suspended pensioners.

The new guidelines replace those issued last year following observation of continued misclassification of members with unclaimed benefits resulting in over or understatement of member benefits.

IPEC says it has noted inconsistencies in the factors taken into the classification of unclaimed or deferred benefits.

According to new regulations, the unclaimed benefits are the funds that have not been claimed by fund members when they became due because members be located for a period of more than six months. Suspended pensioners are individuals whose benefits are withheld by the fund on account of not providing proof of existence.

An analysis of the unclaimed benefits data revealed that stand-alone funds have the largest proportion of unclaimed benefits, accounting for 90 percent, translating to about 96,000 members.

Insured funds and self-administered funds accounted for 8 percent and 2 percent, respectively.

IPEC said about 86 percent of the unclaimed benefits had accrued over a period in excess of 10 years, raising concerns over the traceability of the members entitled to the amounts.-ebusinessweekly