Domestic Worker Wins R1.8 Million From Employer’s Pension After Tribunal Battle

• A long-running dispute over a retirement payout has ended with a domestic worker being awarded a multimillion-rand death benefit linked to her late employer’s pension fund
• The Pension Funds Adjudicator dismissed a challenge by the executor of the estate, who had contested the allocation of the funds
• The ruling followed a legal battle over who qualified as a dependant and how the benefit should be fairly distributed

SOUTH AFRICA - A former housekeeper who worked for her employer for more than 30 years has been awarded a full R1.8 million death benefit from a retirement annuity after a legal challenge was dismissed by the Pension Funds Adjudicator (PFA).

According to IOL, the dispute was brought by the executor of the deceased estate, who tried to overturn the decision by the Allan Gray Retirement Annuity Fund to pay the entire benefit to the former employee.

Long-term support at the centre of the case

Read also

Athlete killed after taking on cancelled Ironman route despite official warning

The housekeeper had worked for the deceased for 31 years and was described as being treated like family.

After retiring, she continued receiving R3,500 per month from her former employer to help with living expenses such as groceries. Both the deceased and her husband also included her in their wills, each leaving her R200,000.

The deceased passed away in September 2024, followed by her husband in October 2024. While the estate was being finalised, the monthly payments to the housekeeper continued.

Why the executor objected

The executor argued that the retirement fund made the wrong decision in awarding the full benefit to the housekeeper. She said the fund incorrectly treated her as the sole dependant and should have shared the money between the estate and other dependants.

She also argued that the deceased had nominated her husband as beneficiary of the retirement annuity, meaning different sections of the Pension Funds Act should have been applied.

In addition, she claimed the R200,000 inheritances meant the housekeeper was no longer financially dependent.

Read also

SA musician removed from Nigerian awards after backing national shutdown

View post from IOL here:

Adjudicator’s findings

Deputy Pension Funds Adjudicator Naheem Essop rejected the executor’s application. He found that the fund had relied on the wrong legal reasoning, but reached the correct outcome based on the facts.

Essop said both the husband and the housekeeper were legal dependants at the time of death and should have been considered in an equitable distribution. He also noted that the husband’s later death did not remove him from being considered as a dependant at the time the decision was made.

After weighing all the circumstances, including the long-term financial support provided to the housekeeper and the purpose of the Pension Funds Act, Essop ruled that awarding her the full R1.89 million benefit was fair and justified. The executor’s attempt to overturn the payout was therefore dismissed.

Domestic workers brags about her 'comfy' job

Briefly News also reported that a domestic worker shared a TikTok video, giving followers a glimpse into why she loves her job. In the clip she joked that many people would be jealous of the benefits she enjoys at work. She said her employers let her nap when the child she looks after is asleep and even allow her to cook meals she feels like eating, even if they are not on the family's menu.

Source: Briefly News