Mr Mungal and Mr Freeman were members of pension fund organisations whose benefits were underwritten by endowment insurance policies issued by Old Mutual Life Assurance Co SA Ltd. Old Mutual was both the insurer and the administrator of the funds. Each appellant terminated (or effectively terminated) his policy before its contractual maturity date. Upon early termination, Old Mutual applied a 'market adjuster', reducing the amount paid compared to the credit balance reflected in the policy accumulation account. Both appellants complained to the Pension Funds Adjudicator, alleging that Old Mutual was not entitled to reduce their benefits as the policies did not expressly provide for a market adjuster. The Adjudicator upheld the complaints and ordered Old Mutual to pay the deducted amounts. Old Mutual successfully reviewed the determinations in the Durban High Court. The appellants then appealed to the Supreme Court of Appeal.