We have provided some useful information on Engineering Industries Pension Fund in South Africa. Go through to find out more about this information, however feel free to ask us questions as well.
About Engineering Industries Pension Fund
The “Engineering Industries Pension Fund” is the continuation of the Metal Industries Group Life and Provident Fund in which the Metal Industries Group Pension Fund was merged, begun full operation from 1 January 1995, however was first founded in 1957.
The Engineering Industries Pension fund was a “Defined Benefit” fund until 31 March 2012. This implies that, the benefits that are payable with respect to the Rules are guaranteed and are fixed in nature. The Fund bears the risk and benefits payable on retirement must be paid as a monthly income and are payable to the member for the rest of his or her life.
From 1 April 2012, the Board of Trustees converted the active member section of the Fund to a “Defined Contribution” based Fund. This happened to ensure the long term financial sustainability of the Fund.
In principle, a “Defined Contribution” based Fund implies that, members benefits are dependent on the members own contributions to the Fund, and the employer contributions, and interest earned from investing these contributions.
Engineering Pension Fund Membership Requirements
Who Must Contribute to the Metal Industries Benefit Funds?
A new employee who is employed in a scheduled occupation in the Metal and Engineering Industries has the choice of joining either.
Who Is A Scheduled Employee?
A scheduled employee is defined as any worker whose least rate of salary is programmed in any terms of the Iron, Steel, Engineering and Metallurgical Industries and mostly involves many technical/skilled occupations in the Metal Industry. For further details regarding the categories of work deemed to fall within a scheduled occupation, reach out to the Bargaining Council in your area.
How To Complete The Option Form
The member must complete an Option Form to confirm which Fund he/she decides and has three months in which to amend his/her choice. An Option Form must be completed and delivered to MIBFA’s offices.
Please beware that membership of one of the Fund is mandatory to every worker who fall within the confines of the Industrial Agreement and they may not withdraw from the fund while they remain employed.
Information have been provided in the Engineering Industries Pension Fund and Metal Industries Provident Fund agreements, which in the Government Gazette No. 18884 have been published by the Minister of Labour as revised and re-enacted from time to time.
Membership will end as long as an employee quits service in the industry. If the member receives a disability income benefit, he or she is still recognize to be in service of the Metal Industry.
About The Membership Number
The ID number of the member is used as the membership number and should be quoted in every conformity with the fund.