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| A Brief History of the Funds that are administered by MIBFA: |
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| Engineering Industries Pension Fund |
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The "Engineering Industries Pension Fund" having been named and being the continuation of the Metal Industries Group Life and Provident Fund with which the Metal Industries Group Pension Fund was merged with effect from 1 January 1995, was first established in 1957.
Until 31 March 2012 the Engineering Industries Pension fund was a "Defined Benefit" fund. This means that the benefits that are payable in terms of 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.
The Board of Trustees decided to convert the active member section of the Fund to a "Defined Contribution" based Fund as from 1 April 2012.
This was done in order to ensure the long term financial sustainability of the Fund.
In a "Defined Contribution" based Fund, member benefits are based on the members own contributions to the Fund, plus the employer contributions, plus interest earned from investing these contributions. |
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| The Metal Industries Provident Fund |
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The "Metal Industries Provident Fund", a Defined Contribution Fund was established on 01 May 1991. In this Fund, only the contributions are defined and benefits that are payable in terms of the Rules are payable as a lump sum. There is no monthly income on retirement. The member therefore carries the
risk and is responsible for ensuring that s/he invests the lump sum wisely. |
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| The establishment of a Provident Fund came about as a result of negotiations between the Trade Unions and the Employers. One of the main reasons being for the establishment of the Fund was that pensioners living in rural areas had difficulty in collecting monthly payments. |
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| On starting employment, workers can thus choose to belong to either the Engineering Industries Pension Fund or join the Metal Industries Provident Fund. |
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| The Metal and Engineering Industries Permanent Disability Scheme |
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| The Permanent Disability Scheme was established in 1994 in order to provide a monthly income to members who become permanently disabled and unfit to carry out any occupation in the Metal Industries. |
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| On joining either the Engineering Industries Pension Fund or Metal Industries Provident Fund, members automatically assume membership of the Permanent Disability Scheme. |
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| Metal and Engineering Industries Bargaining Sick Pay Fund |
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| The Sick Pay Fund, a benefit fund governed by the Friendly Societies Act, was established in 1978. |
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| These benefits are temporary in nature and are geared to assist employees in times when they have exhausted their sick leave and have no means of income while they are absent from work due to illness or confinement. |
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