Unclaimed pension benefits: Why it happens and what can be done about it
Every pension benefit tells a story of years worked, contributions made, and futures planned. Yet across Namibia, many pensioners and their beneficiaries are unaware that payments are still due to them.If a pension suddenly stops, it doesn’t always mean the funds are exhausted. Often, it’s because the fund has lost contact with the pensioner, and the benefit becomes suspended. These unclaimed funds may eventually be transferred to the Guardian’s Fund if not claimed within five years.
What is a pension?
A pension is a regular payment made to individuals after retirement, usually funded by contributions made during their working lives. It can come from employer schemes, government programmes, or private savings. Pension benefits may include monthly payments to cover living expenses and survivor benefits paid to a spouse or other beneficiaries after a pensioner’s death.
These benefits are intended to offer stability and financial security during retirement.
What is a suspended pension?
A suspended pension is when payments are temporarily halted due to missing or outdated information. To ensure only valid payments are made, most funds request pensioners to regularly provide proof of existence, typically once a year. If this is not received, or if the fund cannot verify the pensioner’s identity or location, the pension is suspended until updated information is provided.
Why are benefits suspended?
• Poor record-keeping: Pensioners who move or change personal details without informing the fund can be difficult to trace. Missing ID numbers or outdated contact details also create issues.
• Lack of communication: Pensioners often don’t know they must provide updates or proof of existence. As a result, they become unreachable and unaware of changes or requests.
• Unawareness of entitlement: Pensioners may wrongly believe their funds have run out. In cases of death, family members often don’t know a benefit is due or whom to contact.
Consequences of inaction
If no claim is made within five years, suspended pension funds are transferred to the Guardian’s Fund. Though reclaimable, the process is more complicated and time-consuming. Worse, families may lose access to vital financial support.
How to prevent pension suspensions
• Keep personal information up to date with your fund, including contact and banking details.
• Respond to requests for proof of existence promptly.
• Maintain contact with your pension administrator.
• Inform family members about your pension benefits and ensure they know who to contact if needed.
Fund administrators should use tracing tools and public notices to reconnect with inactive members.
Momentum Metropolitan Namibia urges all pensioners and their families to check the list of suspended pensioners at www.momentummetropolitan.com.na/momentum-corporate or contact [email protected]. If you recognise a name, gather any relevant documents (e.g. ID, employment records, death certificates) and contact Momentum to begin the claims process.
Pensions are more than money; they’re earned legacies. By staying informed and proactive, we can ensure no Namibian is left without the retirement support they deserve. Momentum Metropolitan Namibia remains committed to helping citizens reclaim what is rightfully theirs.
* Emda Fourie is the Head: Employee Benefits at Momentum Metropolitan Namibia.