South Africa\u2019s financial regulator is working on a plan to ensure billions of rand in unclaimed retirement, severance and death benefits are distributed.<\/p>\n\n\n\n
Financial Sector Conduct Authority (FSCA) Commissioner Unathi Kamlana said that R88 billion was owed to South Africans but had not been claimed.<\/p>\n\n\n\n
\u201cPeople 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,\u201d Kamlana said in an interview with Bloomberg.<\/p>\n\n\n\n
South Africa has among the world\u2019s highest unemployment and inequality rates.<\/p>\n\n\n\n
The nation\u2019s mining sector, which historically relied heavily on a low-income labour force, accounts for the largest chunk of unclaimed benefits, FSCA research shows.<\/p>\n\n\n\n
\u201cThe sector was designed never to really look after the interests of the labourers, and therefore whatever would\u2019ve been deducted, would\u2019ve been deducted, I think, with the intention that the labourers would never get that money,\u201d Kamlana said.<\/p>\n\n\n\n
The FSCA wants to make information more easily available and improve the process for lodging a benefit claim.<\/p>\n\n\n\n
Some of the funds could also potentially be used to improve public services in poor areas. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
\u201cThis is an old problem, but the unclaimed benefits increase each year, which means that not enough is done,\u201d Kamlana said.<\/p>\n\n\n\n
Millions of South Africans are linked to unclaimed assets and benefits they do not know about.<\/p>\n\n\n\n
Assets in this category include retirement fund benefits, bank deposits, interests in collective investment schemes, and various life and non-life insurance policies.<\/p>\n\n\n\n
They can also encompass proceeds such as dividends and interest payments that are left uncollected, particularly when beneficiaries are unaware of them.<\/p>\n\n\n\n
The assets may be unclaimed because of poor information updates and record keeping by funds or administrators\u2014or there may have been changes from employers and intermediaries.<\/p>\n\n\n\n
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.<\/p>\n\n\n\n
The tool requires basic information like your name, surname, identification number, fund name, and employer.<\/p>\n\n\n\n