Tuesday, 25 November 2014

 
Withdrawal Benefits
 
 
Pension and Provident Funds
 

Withdrawal Benefits are payable to members on termination of employment before age 55.

  • Resignation, Dismissal, Termination of contract or Absconded.

The Withdrawal benefit is a cash lump sum equal to the member's full Fund Credit, including profits of the Fund.

 
 
The Full Fund Credit is made up as follows:
 

The member's contributions with interest + the employer's contribution LESS costs of death, disability and administration with interest + voluntary contributions / monies transferred into the Fund with interest + profits of the Fund.

 
Example: 
 

 

Instead of claiming his / her withdrawal benefit as a cash lump sum, the member may choose to leave it in the Fund or transfer it to another approved Retirement Fund. Should the member wish to transfer the benefit, then the Transfers Division of MIBFA will assist and provide additional information on the procedures to be followed.

 
What if the Member is promoted to an Unscheduled Occupation?
 
If the member is promoted to a non-scheduled job in the company, s/he may continue to contribute as a member of the Metal Industries Pension or Provident Funds, or transfer to the domestic Fund of the company. If the latter applies, the company should contact the MIBFA transfers department to have the Actuarial Reserve Value or fund credits transferred to the company scheme.
 
The following documents are to be completed and supplied by the Employer on behalf of the member:
 
  • Application for Withdrawal Benefit Form. The form must be signed and dated by the member in the presence of a Human Resources official. (This is to stop another person from claiming the benefit.) 
  • Copy of the Identity Document 
  • Bank Mandate form signed by the member. 
  • Certificate of Service from the Employer.

The Fund will pay these benefits as soon as possible after the completed claim forms and supporting documentation are received by the Fund.