How pension contributors could lose their benefits

There are so many reasons why many pension contributors are unable to access their benefits or lose it completely.

We have people who are dead but their next-of-kin is nowhere to be found to file for such claims.

Pension Fund Administrators do not have interest keeping such money, so they want next-of-kins of the dead to come forward and claim these benefits.

A person’s next of kin (NOK) is that person’s closest living blood relative or relatives. It can either be a person’s spouse or children.

If a child is below 18, he or she needs a legal guidance to get the benefit.

It is also important that people prepare their will, so that when they die, the benefits would be disposed according to the will.

There are people that have retired and relocated from where they used to live to places, where their PFAs cannot reach them. The PFAs are the ones in care of these people’s money, either their death benefits or terminal benefits. There are also those that have not submitted their documents. In these people’s case, these documents are to be completed, so that they can proceed to the PFAs and collect their money.

In the pension industry, “once the documentation is completed, the individual would be paidwithin one week,” a pension operator said.

There are also cases of employees taking the option to resign, rather than accepting being fired. When this happens, the affected person cannot get the 25 per cent of the contribution provided in the law, if he or she stays off job for a certain period of time. A lot of banks’ staff members that were disengaged, were asked to resign. Now, they cannot get a 25 per cent of their benefits.

It is important to let people know that their employer must sack them, in order to get a 25 per cent of their total contribution, if they wish to access it.

If your employer tells you to resign, tell him to sack you, for it is better than a forceful resignation.