Motor

Motor surplus payout readyAt long last the Financial Services Board (FSB) has approved the Autoworkers Pension Fund Scheme (surplus payout).

"We will be ready to payout those former members from August 2008," says Francois van Niekerk, assistant general manager of the Motor Industry Fund Administrators.

Who qualifies for surplus from Motor Industry Funds?

* Any member of the Auto Workers Provident Fund, Motor Industry Provident Fund and Auto Workers Pension Fund (now called the Motor Industry Pension Fund 2005) who received a withdrawal benefit BEFORE 31 March 2004.

* Included in the above are those members that left and received a withdrawal benefit AND then started contributing to the Motor Industry again AFTER 1 April 2004.* NO-ONE ELSE QUALIFIES.

* These three Funds: "old" Motor Industry Pension Fund; the MISA Pension Fund and the Copartes Pension Fund DO NOT have any surplus for distribution.

Therefore, ANY previous contributing members to these 3 Funds DO NOT qualify in ANY way for surplus distribution.

Who does not qualify for surplus distribution?

* any member, former or current, that falls under bullet point 4 above.* ANYONE that received a "Retirement" benefit at ANY time.* ANYONE that received a "Disability" benefit at ANY time.

* ANY spouse, common-law-widow, customary widow, girlfriend or any other beneficiary/dependant that received a "death" benefit payment of any deceased member at ANY time.

Issued by Motor Industry Fund AdministratorsFor more details contact: 086 727 7007/8

But still long delay over Engineering surplusRead the information below from the engineering fund administrators to find out exactly where the surplus distribution exercise is.

Engineering Industries Pension Fund/Metal Industries Provident Fund

Status report on the surplus distribution exercise at 31 July 2008

Prior to 1 January 2008, the Metal Industries Provident Fund and Engineering Industries Pension Fund fell under the provisions of the Labour Relations Act (LRA).
The amendment to the Pension Funds Act in December 2001 which required Funds to distribute surpluses, did therefore not apply to the Metal Industry Funds.

As both the Metal Industries Provident Fund and Engineering Industries Pension Fund had been registered voluntarily with the Financial Services Board, Trustees approached the High Court to obtain legal clarity as to whether the Pension Funds Act Provisions applied to these Funds.

The Courts held that the provisions of the Pension Funds Act did not apply, which was upheld on appeal by the Financial Services Board.In September 2007, the Pension Funds Act was amended to include Bargaining Council Funds with effect from 1 January 2008.

The implication of this amendment was that the Metal Industries Provident Fund and Engineering Industries Pension Fund have to embark on a surplus apportionment exercise with a Surplus Apportionment date of 31 March 2008 ie the first financial year end after 1/1/2008.

The Trustees of both Funds have formed a Surplus Committee which is currently busy with the following initiatives:* The appointment of former member representatives.

* An analysis of former member data (data cleansing)* The establishment of a call centre to deal with members' enquiries.
It is envisaged that advertisements will appear in the press during September.

* It is envisaged that the Surplus Distribution process will take a minimum of 18 months to 2 years to complete and submit to the Registrar of Pension Funds for consideration and approval.

Monies can only be paid to former members after receiving the necessary approval from the Registrar.*

The Funds are also currently in the process of being re-registered by the Financial Services Board and recently received confirmation that both the Metal Industries Provident Fund and Engineering Industries Pension Fund have been provisionally registered.

* The Actuary is currently preparing the valuation of both Funds.The Surplus Committee reports to the Fund Trustees on a regular basis and will keep Parties informed of progress.

(Issued by Metal Industries Benefit Funds Administrators, 31 July 2008)

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