Big plans for R88 billion in unclaimed assets in South Africa – see if you’re owed money
South Africa’s financial regulator is working on a plan to ensure billions of rand in unclaimed retirement, severance and death benefits are distributed.
Financial Sector Conduct Authority (FSCA) Commissioner Unathi Kamlana said that R88 billion was owed to South Africans but had not been claimed.
“People are genuinely interested in getting this right because, in a country with an unemployment rate such as ours, anything that provides any kind of alleviation is acceptable,” Kamlana said in an interview with Bloomberg.
South Africa has among the world’s highest unemployment and inequality rates.
The nation’s mining sector, which historically relied heavily on a low-income labour force, accounts for the largest chunk of unclaimed benefits, FSCA research shows.
“The sector was designed never to really look after the interests of the labourers, and therefore whatever would’ve been deducted, would’ve been deducted, I think, with the intention that the labourers would never get that money,” Kamlana said.
The FSCA wants to make information more easily available and improve the process for lodging a benefit claim.
Some of the funds could also potentially be used to improve public services in poor areas.
Other proposals include establishing a central unclaimed assets fund or transferring the money to the National Revenue Fund. The FSCA plans to submit its proposals to the government.
“This is an old problem, but the unclaimed benefits increase each year, which means that not enough is done,” Kamlana said.
How to check if you are owed money
Millions of South Africans are linked to unclaimed assets and benefits they do not know about.
Assets in this category include retirement fund benefits, bank deposits, interests in collective investment schemes, and various life and non-life insurance policies.
They can also encompass proceeds such as dividends and interest payments that are left uncollected, particularly when beneficiaries are unaware of them.
The assets may be unclaimed because of poor information updates and record keeping by funds or administrators—or there may have been changes from employers and intermediaries.
For any South Africans wanting to see whether they are owed any money, the FSCA provides a tool that allows for a partial or even complete search.
The tool requires basic information like your name, surname, identification number, fund name, and employer.
If there’s a potential match, the FSCA will provide you with the contact details of the relevant fund or administrator.
You can then contact them directly and follow their usual claims process.
It is important to note that the FSCA and other associations who are trying to link South Africans to the money owed are not the ones facilitating payments.
This is something that has to be handled directly with the fund or administrator that holds the assets.
Another service provider, Robin Hood, has partnered with Standard Bank to fast-track the link between South Africans and benefits.
The platform is app-based, and allows a faster tracking and claims process for verified users on the platform.
According to Standard Bank, the fast-tracking work by removing the requirement for clients to individually approach funds to submit claims.
This is accomplished through the platform partnering with funds to create a shared base for the tracing, linking and claims to be made.
(With Bloomberg)
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