Section 37C of the Pension Fund Act places a significant responsibility on retirement fund trustees. When a member dies before reaching normal retirement age, trustees cannot simply pay the death benefit to the nominated beneficiary and consider the matter closed.
The law requires a thorough, documented investigation – and the consequences of getting it wrong can be serious.
Funds that fail to comply with Section 37C risk complaints being lodged with the Pension Funds Adjudicator, findings against the fund and considerable reputational damage. In some cases, trustees may be required to redo the entire distribution process – a costly and time-consuming exercise that could have been avoided.
The question every fund should be asking is: do we have the capacity and expertise to conduct these investigations properly?
For many funds, the honest answer is that the process is under-resourced or inconsistently applied. Tracing dependants, verifying dependency and assessing the level of reliance on the deceased requires specialised skills and a structured approach – not something that can be handled adequately alongside the day-to-day demands of fund administration.
Uphando offers retirement funds a reliable, specialist solution. Our team is experienced in the full Section 37C process – from tracing beneficiaries and nominees through to dependency verification and reporting – giving trustees the information and confidence they need to make sound decisions.
Do not wait for a complaint to reveal gaps in your process. Partner with Uphando and ensure your fund meets its Section 37C obligations correctly, every time.