The Financial Services Board (FSB) has finally approved the pension fund surplus apportionment scheme of the Engineering Industries Pension Fund and the Metal Industries Provident Fund. R27-billion will be paid out to members and former members.
The FSB announcement of the approval for the two big schemes almost brings to an end the decade-long exercise of giving members and former members a fair entitlement to fund surpluses.
The Mibfa surplus committee met on February 1 2012 and agreed that former members and the pensioners will be paid in May 2012. However current members will not receive a cash payout, as it will be transferred into their fund credit in June 2012.
The metal industry fund administrator’s chief executive officer, Jacques Calomiti said they would like to pay out cash as soon as possible to former members, but most of the former members do not have bank accounts, and the actuaries are still recalculating the surplus for each member for the period until 31 December 2011.
Former members who have already submitted their applications for the surplus will receive a bank mandate form in March 2012.
Members are expected to sign those forms and immediately send them back to Mibfa and those who are using box numbers must check their post regularly.
The fund has only received 150 000 forms at the moment and they are still expecting more than a million former members to submit applications.
The trustees of the funds would also like to trace and pay any former members who have left the funds and failed to take benefits due to them when they left.
Please contact your Numsa local office to find out if you are eligible for part of the surplus or unclaimed benefits
Who will get what and when
Fund Current member Former member Pensioners
Engineering pension fund (EIPF) 30% of the current retirement value to be added on the retirement value 30% of withdrawal value 17% increase plus a cash payment of 17% of 18 months.
Metal industry provident fund 30% of withdrawal value to be added on fund credit 30% of withdrawal value to be paid in cash No pensioners
Date of payment June 2012 May 1 April 1
Numsa News No 1, April 2012