New hope for metalworkers as R150 million pension surplus is paid out by the motor industry fund (March 3, 2009 – 9:17 AM)

It seems like just yesterday that the dark cloud has kept everyone guessing over many years as to who qualified and when the pension fund surplus pay-outs would ever begin. 

The surplus legislation was passed in December 7, 2001 and the pension funds had to go back to January 1st 1980 tracing former members across the country that were entitled to claim the unexpected lump sums of the pension surplus. 

Now, at long last the blossoming spring has finally arrived for 41 000 metalworkers who have begun to receive the surplus cash payments ranging between R2 000 and R70 000 each from the Motor Industry Fund Administrators (Mifa). 

Some who never believed that they would ever get paid have began earning pension surplus loot since late in December 2008 as Mifa has effectively paid up R150 million to date.

Mifa actuaries have computed surplus valuations to the tune of R500 million for about two million motor industry employees, Numsa national benefits coordinator Sam Tsiane said. 

The data collection, assessment and verifications in the motor industry fund was almost reaching finality, as more industry workers came forward to submit their claims.

The next phase would involve further searches for those qualifying members who could not be contacted before another pay out evaluation is conducted by the fund.

Much of the current 300 000 Engineering industry employees and former members, meanwhile can expect to bask in the warm sunshine next year as R10 -R15 billion pension surplus would be finally distributed.

This follows prolongued and acrimonious legal disputes between Numsa and the Steel Engineering Industry Federation of South Africa (Seifsa) over which provisions should be used to distribute the funds.

The employer federation had vehemently demanded that trustees and employers were entitled to distribute the funds to workers.

Both parties have since agreed that actuaries should work out details and conduct diligent assessment on exact amounts of surplus to be approved soon by the financial services board.


For further information contact:

Mziwakhe Hlangani, Numsa national spokesperson

Cell phone: 082 9407116



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