South Africa’s retirement fund system is often described in the language of actuarial precision, fiduciary duty and regulatory compliance. But pension law has never been purely technical. It governs people at some of life’s most vulnerable moments: retirement, disability, illness and death. In 2026, that reality is again at the foreground.
Trustees must act within fund rules, lawfully, rationally, reasonably and fairly, in line with constitutional standards. That standard is not theoretical. It demands properly informed decisions, sound process and a clear grasp of the consequences for members and beneficiaries.
Nowhere is this more evident than in death benefit allocations. These decisions are intensely personal and financially decisive. Where they are rushed, poorly reasoned, or based on incomplete information, they are increasingly susceptible to legal challenge.
Pension fund governance now requires disciplined decision making that is both procedurally sound and substantively fair, anchored in rationality and human dignity.
The marriage myth
A determination issued by the Pension Funds Adjudicator in early 2026 concerning the allocation of a death benefit illustrates this evolving approach more clearly. The matter is a timely reminder that a marriage certificate does not, in itself, secure entitlement under section 37C of the Pension Funds Act.
The facts reflected the complexity of modern family life. A customary spouse had separated from the deceased several years earlier while divorce proceedings were pending. Although a marriage certificate was registered after the member’s death, she was ultimately excluded from the allocation because she was no longer financially dependent on him at the time of his passing.
In upholding the board’s decision, the Adjudicator reaffirmed the important principle that legal status is relevant, but it is not decisive. Section 37C requires trustees to undertake a substantive enquiry into dependency, need and the realities of the relationships involved. The Adjudicator’s determination reflected the principles set out by the Constitutional Court in Mutsila v Municipal Gratuity Fund and another [2025] ZACC 17.
By prioritising a cohabiting life partner and minor children over a spouse who was financially self-sufficient, the determination underscored that trustees must look beyond formal labels and assess the lived circumstances of those left behind. In this area of law, substance will often prevail over form.
A new blueprint: The 2026 Pension Fund Adjudicator Rules
If the two-pot system reshaped retirement fund administration, the new Ombud Council Rules may do the same for pension dispute resolution.
Published on 4 March 2026, the Rules mark an important step in aligning the Office of the Pension Funds Adjudicator (OPFA) within the broader Twin Peaks framework.
The Rules are being introduced in stages, allowing the industry time to prepare. From 4 March 2026, the core procedural framework commenced, including provisions dealing with jurisdiction, summary dismissals and default determinations. From 1 October 2026, provisions relating to mandatory disclosures, costs and interest take effect. From 1 April 2027, formal conciliation and settlement procedures commence. The staggered rollout reflects both practical implementation needs and regulatory intent.
The Rules reinforces a long standing principle that the Adjudicator is not intended to be the first forum for routine complaints. Members are generally expected to lodge complaints in writing with the fund or employer first, as contemplated under section 30A of the Pension Funds Act, and only where the matter remains unresolved after the prescribed period may it be escalated externally. For funds, this places renewed importance on responsive, credible and well documented internal complaints handling.
One of the more significant reforms is the formal introduction of conciliation from April 2027. Rather than defaulting immediately to formal determination, the Rules create greater scope for disputes to be resolved through negotiated settlement. The Adjudicator may facilitate or recommend outcomes capable of resolving complaints earlier and at lower cost. This signals a move toward more efficient and less adversarial dispute resolution.
The Rules also strengthen the power to issue default determinations where respondents fail to engage after proper notice. Funds and administrators who ignore correspondence or miss deadlines may find matters decided on the available evidence.
The Rules further strengthen powers to summarily dismiss complaints that lack merit, fall outside jurisdiction, or duplicate matters already addressed elsewhere. That filtering function is important as it preserves capacity for genuine disputes while discouraging frivolous or repetitive complaints.
These Rules represent an evolution in pension complaint resolution.
Technology, governance and the modern trustee
While the human side of pension law is receiving renewed focus, the environment in which funds operate is becoming more digital. From 1 January 2026, the King V Code on Corporate Governance has become an important guide for fund leadership.
For trustees and principal officers, this means governance now goes beyond traditional board matters. It also includes the systems, technology and data used in the day-to-day running of a fund. Whether in claims processing, member communication, fraud detection, investment analysis or administration, technology is playing a bigger role in how retirement funds operate.
An important area of focus is artificial intelligence and automated decision making. The King V Disclosure Framework asks boards to consider whether accountability for decisions, actions, outputs and outcomes is clearly in place, and whether automated systems are subject to suitable human oversight and override controls based on the level of risk involved.
In practical terms, where technology is used for matters such as two-pot claims processing, benefit administration or risk profiling, trustees must be comfortable that these systems are fair, reliable and properly supervised. Decisions that affect members should not be left entirely to automated processes without proper checks and balances.
The role of trustees now includes oversight of technology, understanding where it is used, ensuring suitable controls are in place, and making sure innovation improves outcomes for members rather than creating new risks.
COFI and Prudential Standards
In early April, Cabinet approved the Conduct of Financial Institutions (COFI) Bill for submission to Parliament.
The bill aims to simplify and unify financial sector laws, creating a consistent framework for all financial institutions in South Africa. The intention is to strengthen consistency in customer protection, governance and market conduct across the financial services industry. Importantly, it also reinforces the expectation that financial institutions must embed fair customer outcomes throughout the lifecycle of savings, administration and benefit delivery.
At the same time, the Prudential Authority’s Prudential Standard 1 of 2026 (RF) introduces a consolidated approach to regulatory reporting and financial disclosure for retirement funds. This standard aligns reporting requirements with updated International Financial Reporting Standards (IFRS) and recent amendments to Regulation 28, while consolidating and replacing earlier reporting frameworks such as Board Notices 14 and 77.
Although the standard became effective on 1 January 2026, its phased implementation allows funds time to adjust systems and reporting processes ahead of full compliance expectations. This transitional period is intended to support a smoother shift toward more consistent and transparent reporting across the industry.
The final word
As the COFI Bill continues its journey through Parliament, it is clear that the regulatory framework is steadily evolving.
Whether through the principles in King V, the approach of the Office of the Pension Funds Adjudicator or the publication of the new rules, a common thread is emerging. Decisions must comply with the law, but they must also be fair and properly consider their impact on people.
The role of trustees and pension professionals therefore extends beyond administration and investment oversight. It includes ensuring that the systems and decisions of a fund ultimately serve the purpose for which retirement funds exist providing security, stability and dignity in retirement.
