TymeBank pays out R200 million in unclaimed Motor Industry Retirement Funds benefits

TymeBank has paid out R200 million in unclaimed Motor Industry Retirement Funds (MIRF) benefits to 20 000 beneficiaries of MIRF, all of them TymeBank customers, who will end the year on a high after receiving previously unclaimed benefits.

Building on its existing technology, TymeBank developed a solution (Pay2ID) that allows a business to securely disburse funds to specific people by using their biometrically verified ID.

“This initiative with TymeBank introduces a digital mechanism for MIFA to settle outstanding claims with ease. Settling unclaimed benefits in less than a week is unheard of in the industry,” Lihle Khoza, CEO of MIFA, says.

“Among the contributing factors in the challenge to pay out unclaimed funds is the lack of emphasis on member education. Many members are not, or were not, aware of their benefits in their respective retirement funds. The lack of unique data to accurately identify and trace beneficiaries exacerbates the issue even further. This is due to poor record-keeping as well as the migration of labour, where people move without providing a change in contact details.”

Adam Esat, principal officer of the MIRF, says due to these historical reasons, the MIRF has been holding unclaimed benefits belonging to former retail motor industry employees who were members of the various retirement funds that fall under the 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 its 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.”

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Upfront verification helps

Jarred Deacon, head of growth at TymeBank, says when the bank signs up customers, it verifies account holders biometrically and ensures that its records are kept up-to-date and 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.”

The timing could not be better for these beneficiaries and their families, who will have good reason to celebrate during the festive season and into the new year, he says.

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

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) can open a TymeBank account to ensure that 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 at www.fsca.co.za/customers/pages/unclaimed-benefits to check whether they have any unclaimed benefits.