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South Africa: Landmark Constitutional Court judgment on the distribution of death benefits | SA News

A judgment handed down by the Constitutional Court earlier today (8 August 2025) revisits the precedent set by the Supreme Court of Appeal in Guarnieri v Fundsatwork Umbrella Pension Fund (Guarnieri), and reshapes the interpretation of section 37C of the Pension Funds Act, 1956 (PFA).

Section 37C of the PFA governs the equitable distribution of death benefits to dependants of deceased members of retirement funds governed under the PFA. This is the first time the Constitutional Court has interpreted and applied section 37C.

The decision directly overturns the decision in Guarnieri, which held that the ‘time at which to determine who is a dependant for the purpose of distributing a death…

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