Guest Contributor | Jul 3, 2019 | 0
GIPF urges clients to update Beneficiary Nomination forms to avoid late pay-outs
The Government Institutions Pension Fund (GIPF) this week urged all members to visit their Human Resource officers from their respective institutions, to update their Beneficiary Nomination forms.
Members must ensure that the names and date of births of their dependants and nominees accurately appear on the forms as they reflect on their national documents.
“A Beneficiary Nomination form is a legal document, which is obtained at the member’s Human Resource Officer, the day he/she commences with work. This form should be completed by the member in terms of Section 37C of the Pension Funds Act, No. 24 of 1956,” said David Nuyoma, Chief Executive Officer of the GIPF.
Trustees use the form to guide them on how to distribute death benefits to the member’s dependants. In addition, the form is used to trace and identify all the member’s dependants in the event that such information is needed to enable timely payment of benefits.
“It is therefore, critical that every member clearly specifies the relationship of the dependants (beneficiaries) and nominees such as; biological son, nephew, niece and spouse and indicate the percentages that each dependent (beneficiary) should receive,” they added.
According to the Fund, members will be required to provide a list of individuals that should receive their benefit payments.
The list of individuals can either be a dependent or a nominee. A dependant is someone who the member is legally liable to take care of; for example, a member’s spouse and minor child/children. A nominee is someone who a member has considered to benefit from their pension, such as parents and adult children. The Beneficiary Nomination form is not a will. The benefits will not be distributed in
accordance to what the member has stated on the form. However, the Beneficiary Nomination form will be used to guide the Board of Trustees of GIPF in the distribution
of benefit payments.
“A member is required to update the form on a yearly basis or when a member’s ci rcumstances change. The changes relate to circumstances such as marital status and th e birth/death of a child/children. It is important that information is accurately captured, as failure to do so will cause delays in finalising the member’s benefit payments. Therefore, I urge you to visit your Human Resource Officer or your nearest GIPF office to ensure that your dependents and nominees are well taken care of in the event that you are no longer around,” concluded Nuyoma.