Despite a court ruling allowing Old Mutual to pay out only R2-million in terms of its surplus apportionment scheme, last week the company announced it would pay out the full R82-million as per letters sent to former pension-fund members in September last year.
Peter de Beyer, managing director customer solutions at Old Mutual announced: ‘After careful consideration of all of the issues at stake, Old Mutual has decided to waive any rights it may have against the Fund as a result of the high court decision. Thus the payment of the R82 million to the Fund in terms of the Fund’s surplus distribution stands as per the original apportionment scheme which was approved by the Registrar of Pension Funds.”
Last week the Mail&Guardian wrote about Old Mutual’s dilemma as it faced angry and frustrated former members on one hand and shareholders who would foot the bill on the other. After going to press, Old Mutual made the surprise announcement that was only expected within the next few weeks.
De Beyer expressed regret at any distress or inconvenience suffered by beneficiaries of the surplus apportionment scheme as a result of the delay in the distribution. ‘It was, however, necessary for Old Mutual properly to consider the full implications the high court judgement obtained by Sanlam.”