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TymeBank pays out R200m in unclaimed Motor Industry Retirement Funds benefits

TymeBank pays out R200m in unclaimed Motor Industry Retirement Funds benefits
20-12-23 / Shelly Nxumalo

TymeBank pays out R200m in unclaimed Motor Industry Retirement Funds benefits

Johannesburg - Thousands of Motor Industry Retirement Funds (MIRF) beneficiaries are receiving a whopping R200 million in previously unclaimed benefits from the Motor Industry Fund Administrators (MIFA), who administer retirement funds on behalf of MIRF.

TymeBank has been making payments to the 20 000 beneficiaries, who are all TymeBank customers, since 12 December 2023.

The payments have been expedited thanks to a partnership between MIFA and TymeBank. Building on its existing technology, TymeBank has developed a solution (Pay2ID) that allows a business to securely disburse funds to specific people by using their biometrically verified ID.

Lihle Khoza, CEO of MIFA, says: “When MIFA approached TymeBank to explore this initiative, the team at TymeBank readily welcomed our mission and has been very resourceful and solution-driven. This initiative with TymeBank introduces a digital mechanism for MIFA to settle outstanding claims with ease. Settling unclaimed benefits in less than a week has been unheard of in the industry!”

Khoza unpacks the challenge of unclaimed benefits in the country: “Among the contributing factors is the lack of emphasis on member education; many members are not, or were not, aware of their benefits in their respective retirement funds. What further exacerbates the issue is the lack of unique data to accurately identify and trace beneficiaries. This emanates from poor record keeping as well as the migration of labour, whereby people move without providing a change in contact details.”

Adam Esat, Principal Member of MIRF, adds: “Due to these historical reasons, MIRF have been holding unclaimed benefits belonging to former retail motor industry employees who were members of the various retirement funds that fall under MIRF. We have tried to contact the beneficiaries using traditional tracing methods, but this has been a slow and frustrating process that has not yielded the expected results. TymeBank, thanks to the power of their innovative financial technology, has been able to deliver a solution that no other service provider could provide, making it possible for us to track and trace thousands of members and pay them their money in an efficient and cost-effective manner.”

Jarred Deacon, Head of Growth at TymeBank comments: “When we sign customers up, we verify account holders biometrically and ensure that our records are kept up to date and are FICA compliant. This puts TymeBank in the unique position to track beneficiaries, verify their identities and facilitate payments. Our Pay2ID solution provides safe and secure biometrically verified payments, which can solve for any organisation looking to trace and disburse funds.

“We are pleased that TymeBank can play such an important role in helping these beneficiaries, who are also TymeBank customers, receive what is rightfully theirs. The timing couldn’t be better for these beneficiaries and their families who will have good reason to celebrate during the festive season and into the new year.” 

TymeBank has the support of the Financial Sector Conduct Authority (FSCA) in assisting MIFA to pay out the hundreds of thousands of beneficiaries once they have been traced. 

“As evidenced by the successful execution of this initial round of payments, if you open a TymeBank account and are an unknowing beneficiary of MIRF, our technology enables us to check against a fund’s database to proactively confirm any unclaimed benefits you are owed,” highlights Deacon. 

Anyone who believes they have an unclaimed benefit from MIRF or who worked for an employer that belonged to the Motor Industry Bargaining Council (MIBCO) should open a TymeBank account so any due payments can be disbursed using the Pay2ID solution.

All South Africans, including former employees of the retail motor industry, can visit the FSCA website on www.fsca.co.za/customers/pages/unclaimed-benefits to check whether they have any unclaimed benefits.

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