© Master Builders KwaZulu-Natal 2017

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It is important to have a retirement plan to provide for you in your old age. The sad reality however, is that when most people start to worry about their old age, it is late to do much about it. None of us want to be financially insecure when we are old. Yet most people will have to work for the rest of their lives just to keep body and soul together! It is therefore in your best interest to choose a retirement plan that can provide you with a monthly income until the very end, earn investment return (so that your money can grow) and cover the rising cost of living. There are many types of investments which build up capital or provide a monthly income when you retire.

KwaZulu-Natal Master Builders and Allied Industries Association can assist you in this regard as we are administrators of the KwaZulu-Natal Retirement Fund and Provident Fund.

We are able to assist you on Employee Benefit products and source a tailor-made solution through our accredited partners. Our aim is a customer who has peace of mind and who knows that informed advice is the key to professional financial planning.

We offer a Pension Fund, a Provident Fund, and we run a Holiday Pay Stamp Scheme.

Please note that the benefits for both Funds are identical except that on retirement from the KZN Retirement Fund a member can take up to 1/3rd as a lump sum with the remaining benefit being used to purchase a monthly pension. For the KZN Provident Fund the member can take up to 100% as a lump sum.

The purpose of this Booklet is to provide you with a brief description of the benefits available under these Funds, including the Group life Assurance, Disability and Funeral Benefits. This Booklet is only a guide, and your full rights under the Fund are governed by the formal Rules and Policies that are available to you upon request. In addition, the Fund's latest Annual Financial Statements and the most recent Valuation Report may be inspected at 40 Essex Terrace, Westville.

In the event of any discrepancy between the Rules and this Booklet, the Rules of the Fund will prevail.

Please study this Booklet carefully so that you understand what the implications of being a member of the Fund are for you and your dependants.

this Booklet carefully so that you understand what the implications of being a member of the Fund are for you and your dependants. 

Download Booklet (PDF)

Visit: www.kznretirementfunding.co.za

 

The Association offers an Annual Leave Pay Scheme designed to protect your cash-flow and ease your year-end administrative burden.

Either weekly or monthly, you make a contribution towards each employee’s annual leave pay provision. Payment and administration is via our user-friendly and innovative stamp scheme (which also integrates with our Pension and Provident Fund schemes)

At the end of the year, the Association will pay your employee his or her leave pay, and refund you the interest earned on the money during the year!

HOW DOES IT OPERATE?

For each week that an employee works, his employer buys him a stamp. ( the "stamp is in fact an electronic unit, as all data is now computerised and the "stamp" terminology has been retained for simplicity and continuity of the terminology) The category of stamp which is purchased for the employee will depend on their hourly wage rate and what kind of benefit the employer wishes to give them. For example:

If a worker is paid R 20.00 per hour they would be bought a stamp which matches that wage rate i.e. Category 110, 210, 310, 410 etc. (See attached schedule) The kind of stamp they would be given, would depend on which series of stamp their employer selected. There are 8 Series of stamps available at present which contain:

Series 1: Annual leave pay (15 working days).
Series 2: Annual leave pay, holiday allowance, (15 working days leave plus 7.5 working days holiday allowance. A total of 22.5 days pay).
Series 3: Annual leave pay, holiday allowance (series 2) and KZN Retirement Fund contributions (series 6).
Series 4: Annual leave pay, holiday allowance (series 2) and KZN Provident Fund contributions (series 5).
Series 5: KZN Provident Fund contributions only.
Series 6: KZN Retirement Pension Fund contributions only.
Series A:Annual leave (series 1) and KZN Provident Fund contributions (series 5)
Series B: Annual leave (series 1) and KZN Retirement Fund contributions (Series 6)

Series 3, 6 and B stamps contain Pension Fund contributions. This Pension Fund is theKwaZulu Natal Retirement Fund which is administered by the KwaZulu Natal Master Builders & Allied Industries Association.

Series 4, 5 and A stamps contain Provident Fund contributions. The Provident Fund is the KwaZulu Natal Provident Fund which is administered by the KwaZulu Natal Master Builders & Allied Industries Association.

The holiday pay value of each stamp is calculated so that 48 stamps will constitute a full year, i.e. an employee with 48 stamps will receive, at year end, a payment which will be equivalent to 15 working days pay plus holiday allowance of 7.5 days, where appropriate.

The stamp year runs from November to October every year. Once an employer has purchased stamps for a full year the Association will pay each employee, normally in December.

The payment will be for the full amount of holiday pay due against the stamps purchased. No income tax is deducted. It follows, therefore, that any income tax payable should be deducted from each employee at the time their stamps are purchased.

Stamps may be purchased on a weekly, two weekly or monthly basis in arrears; this can be done by means of a Stamp Requisition. The purchase requisitions are obtainable from the Associations offices in Westville, Pietermaritzburg, Empangeni and Shelly Beach.

INFORMATION REQUIRED

  • The information required is:
  • Your employee's names and initials
  • Their identity numbers
  • The category of stamp you wish to purchase for them
  • The week(s) for which you are purchasing the stamps.

PAYMENT

Payments must be made according to the specific items that are being purchased. The Holiday Pay portion must be depositedinto the Holiday Pay bank account, the Provident Fund portion into the Provident Fund bank account and the Retirement Fund portion into the Retirement Fund bank account

KwaZulu-Natal Retirement Fund Bank Account

First National Bank

Account No. 62034117110

Branch No. 221426 (Durban Main)

KwaZulu-Natal Provident Fund Bank Account

First National Bank

Account No. 50830012824

Branch No. 221426

KZN Holiday Pay Stamp Scheme

First National Bank

Account No. 50830743776

Branch No. 221426 (Durban Main)

DETAILS OF ALL THE SERIES AND THE WAGE BANDS THEY COVER, ARE SHOWN IN THE ATTACHED SCHEDULES.

PLEASE NOTE

PAYMENT FOR PUBLIC HOLIDAYS IS NOT INCLUDED IN THE ANNUAL LEAVE PAY SCHEME.

PUBLIC HOLIDAY PAY IS PAYABLE BY EMPLOYERS TO EMPLOYEES DIRECTLY WHEN THEY OCCUR.

ALL PUBLIC HOLIDAYS WHICH FALL ON A NORMAL WORKING DAY ARE PAID PUBLIC HOLIDAYS. WHEN A PUBLIC HOLIDAY FALLS ON A SUNDAY, THE MONDAY FOLLOWING WILL BECOME THE PUBLIC HOLIDAY.

 

KWAZULU-NATAL RETIREMENT FUND

(Formerly Building Industry Pension Scheme, Port Natal)

Registrar of Pension Fund Reference Number:12/8/6591

Registered Address: 40 Essex Terrace, Westville, 3629

Postal Address: P O Box 582, Westville, 3630

Telephone Number: 031-2667070

Facsimile Number: 031-2672369

MEMBER BOOKLET -  2017

Those who earn an income should also provide for their future old age. Any of the following could happen to you in the future:

  • You could continue working in the Building Industry until you retire;
  • You could leave your present job;
  • You could become ill or have an accident;
  • You could become disabled or even die.

The purpose of this Booklet is to provide you with a brief description of the benefits available under this Fund and, in addition, the Group life Assurance, Disability and Funeral benefits are explained.   This Booklet is a guide and your full rights under the Fund are governed by the formal Rules and Policies that are available to you upon request.  In addition, the Fund’s latest Annual Financial Statements and the most recent valuation report may be inspected at 40 Essex Terrace, Westville.

In the event of any discrepancy between the Rules and this Booklet, the Rules of the Fund will prevail.

Please study this Booklet carefully so that you understand what the implications of being a member of the Fund are for you and your dependants. 

Download booklets (PDF)

TYPE OF FUND

The Fund is a Defined Contribution Pension Fund, in other words the end benefit to the member is determined by the contributions made to the Fund and the investment returns earned on these contributions.

If the investments appreciate, the value of your benefit increases. If the investments depreciate, the value of your benefit decreases. This means that you carry the investment risk. The objective of this Fund is to provide you with a monthly pension when you retire and therefore differs from the Provident Fund. 

CONTRIBUTIONS TO THE FUND

The total amount contributed to the Fund represents 16% of your wages.  At least half of this must be paid by your Employer. Your employer deducts your contribution from your wage and together with his contribution pays it over to the Fund. 

Of this 16 percent, 11.50% goes towards your retirement benefit, 3.50% is used to pay for death benefits, funeral benefits and disability benefits, while the remaining 1.00% is used to meet the cost of the fund’s expenses.   

The provision of Risk Benefits is subject to affordability and is therefore subject to change.

FUND CREDIT

Your Fund Credit is the sum of all the contributions allocated to your retirement benefit, increased or decreased by investment return. The amount of investment return you will receive will depend on the amount earned by the Fund’s investments that are managed by Asset Managers appointed by the Board of Trustees.

TAX ON BENEFITS

All benefits that become payable may be subject to tax and may, therefore, be reduced by an amount of money to be paid to the South African Revenue Services (SARS).

RETIREMENT BENEFIT

Retirement Age

The normal retirement age is 60, but you can retire at any time after reaching age 55.   The later you retire, the higher your pension will be. You may claim your retirement benefit on date of leaving employment, on written confirmation from your Employer.

PENSION BENEFIT AT RETIREMENT

Retirement Age

The normal retirement age is 60, but you may retire at any time after reaching age 55. The later you retire, the higher your retirement benefit will be. You may claim your retirement benefit on date of leaving employment, on written confirmation from your Employer.

Benefit at Retirement

The amount of your monthly pension will depend on the pension that can be purchased with your Fund Credit. 

Your monthly pension can be purchased from any Registered Insurer, and must be purchased in your own name.

You may elect to receive a portion (not exceeding one third) of your benefit as a lump sum.  Should you elect to receive a lump sum portion, then your monthly pension will reduce accordingly.

On retirement from the Fund, your membership of the Fund will cease.

DEATH BENEFIT

Life Assurance Benefit

If you die while a contributing member of the Fund prior to age 65, your beneficiary(s) will be paid a life assurance benefit of 5 times your annual wage. For example, if your monthly wage is R4, 000 your life assurance benefit will be R240, 000 (R4, 000 x 12 months x 5).

Payment of the Life Assurance Benefit is subject to one contribution having been made within the two months prior to date of death. If death occurs within the first three months of membership of the Fund, unless death is as a result of an accident, the life assurance benefit shall not be paid.

Share of Fund   

Your beneficiary(s) will also be paid your Fund Credit.

NOMINATION OF BENEFICIARY

It is important that you nominate a beneficiary(s). This is necessary so that, in the event of your death, the Trustees will be aware of your wishes in respect of the benefits due, and to whom they should be paid, at that time. Should you decide, at any time, to change the nomination(s), you should inform the Administrator of the Fund as early as possible and complete a new Nomination of Beneficiary Form.

If you die, the Trustees will take your nomination of beneficiary(s) into account although they must decide on any allocation in terms of the Pension Funds Act.

FUNERAL BENEFIT

As a contributing member of the Fund prior to age 65, you and your immediate family will be covered for Funeral Benefits should you or a member of your immediate family die. The following benefits are payable – note that a child’s benefit depends on the child’s age at date of death:

You, your spouse, or children aged 14 to 21years:  R 20,000

Children aged 6 to 13 years: R 15,000

Children aged 1 to 5 years: R 10,000

Children aged 0 to 11 months : R 7,500

Children if stillborn : R 5,000

NOTE : An unmarried child is covered up to the age of 21 years and up to the age of 25 years if a full-time student.  You must, at claim stage, be able to provide proof from a recognised educational institution that the child was a full-time student at date of death.

Payment of the Funeral Benefit is subject to the member being a current contributor of the Fund at the date of death.

DISABILITY BENEFIT

Insured Disability Benefit

If, as a contributing member of the Fund prior to age 65, and based on the medical evidence submitted, the Insurer of this benefit considers you to be totally disabled from performing your occupation, you will receive the following benefit after a period of three (3) months from the date of your disablement:

A disability benefit of 75% of your average wage during the period of 12 months preceding your disablement will be paid to you.  For example, if your average monthly wage is R4,000, your benefit will be R3000 per month.  This benefit will be paid for 21 months, and will commence after the 3 month waiting period has expired.

After the 21 month payment period, and if your disability is considered to be permanent and total, a lump sum benefit of 2.5 x your annual wage will be paid to you, and your membership of the Fund will cease. You will also be paid your Fund Credit.

Details of injuries and illnesses that are not covered for the above insured benefit are given in the Rules of the Disability Benefit Scheme.

Payment of the Insured Disability Benefit is subject to one contribution having been made within the two months prior to date of disability.

WITHDRAWAL BENEFIT

If you leave the Industry before retirement, you may claim your Fund Credit on the date of leaving employment.

MANAGEMENT AND ADMINISTRATION OF THE FUND

The Fund has been established as a privately administered Fund, controlled by a Board of Management.  The Board is made up of representatives of the employees and the employers.  

Alexander Forbes Financial Services provide consulting and actuarial services for the Fund.

The KwaZulu Natal Master Builders & Allied Industries Association is the Administrator of the Fund.

The Fund is governed by a set of Rules that have been registered with the Registrar of Pension Funds.

 

BENEFITS AVAILABLE TO BOTH FUNDS

CONTRIBUTIONS TO THE FUND

The total amount contributed to the Fund represents 16% of your pensionable earnings. Your employer deducts your contribution from your wage and together with their contribution pays it over to the Fund.

Of this 16.0 %,11.5% goes towards your retirement benefit, 3.5% is used to pay for death benefits, funeral benefits and disability benefits, while the remaining 1.0% is used to meet Fund expenses.

The provision of Risk Benefits is subject to affordability and is therefore subject to change.

FUND CREDIT

Your Fund Credit is the sum of all the contributions allocated to your retirement benefit, increased or decreased by investment return. The amount of investment return you will receive will depend on the amount earned by the Fund's investments which are managed by Asset Managers appointed by the Board of Trustees.

TAX ON BENEFITS

All benefits which become payable may be subject to tax and may, therefore, be reduced by an amount of money to be paid to the South African Revenue Services (SARS).

DEATH BENEFIT

If you die while a contributing member of the Fund prior to age 65, your beneficiary(s) will be paid a death benefit of 5 times your annual wage. For example, if your monthly wage is R4, 000 your life assurance benefit will be R240, 000 (R4, 000 x 12 months x 5).

Payment of the death benefit is subject to one contribution having been made within the two months prior to date of death. If death occurs within the first three months of membership of the Fund, unless death is as a result of an accident, the death benefit shall not be paid.

Fund Credit

Your beneficiary(s) will also be paid your Fund Credit.

NOMINATION OF BENEFICIARY

It is important that you nominate a beneficiary(s). This is necessary so that, in the event of your death, the Trustees will be aware of your wishes in respect of the benefits due, and to whom they should be paid. Should you decide, at any time, to change the nomination(s), you should inform the Administrator of the Fund as early as possible and complete a new Nomination of Beneficiary Form.

If you die, the Trustees will take your nomination of beneficiary(s) into account although they must decide on any allocation in terms of the Pension Funds Act.

FUNERAL BENEFIT

As a contributing member of the Fund prior to age 65, you and your immediate family will be covered for funeral benefits should you or a member of your immediate family die. The following benefits are payable:

  • You, your spouse, or children aged 14 to 21 years: R40 000
  • Children aged 6 to 13 years: R22 500
  • Children aged 1 to 5 years: R 16 000
  • Children aged 0 to 11 months: R 11 000
  • Children if stillborn: R 9 000

NOTE: An unmarried child is covered up to the age of 21 years and up to the age of 25 years if a full-time student. You must, at claim stage, be able to provide proof from a recognised educational institution that the child was a full-time student at date of death. Payment of the funeral benefit is subject to the member being a current contributor of the Fund at the date of death.

DISABILITY BENEFIT

If, as a contributing member of the Fund prior to age 65, and based on the medical evidence submitted, the Insurer of this benefit considers you to be totally disabled from performing your occupation, you will receive the following benefit after a period of three (3) months from the date of your disablement:

A disability benefit of 75% of your average salary during the period of 12 months preceding your disablement will be paid to you. For example, if your average monthly wage is R4,,000, your benefit will be R3,000 per month. This benefit will be paid for 21 months, and will commence after the 3 month waiting period has expired.

After the 21 month payment period, and if your disability is considered to be permanent and total, a lump sum benefit of 3 times your annual wage will be paid to you, and your membership of the Fund will cease. You will also be paid your Fund Credit.

Details of injuries and illnesses that are not covered for the above insured benefit are given in the Rules of the Disability Benefit Scheme.
Payment of the disability benefit is subject to one contribution having been made within the two months prior to date of disability.

WITHDRAWAL BENEFIT

If you leave the Industry before retirement, you may claim your Fund Credit on the date of leaving employment.

MANAGEMENT AND ADMINISTRATION OF THE FUND

The Fund has been established as a privately administered Fund, controlled by a Board of Management. The Board is made up of representatives of the employees and the employers.

Alexander Forbes Financial Services provide consulting and actuarial services for the Fund.

The KwaZulu Natal Master Builders & Allied Industries Association is the Administrator of the Fund.

The Fund is governed by a set of Rules that have been registered with the Registrar of Pension Funds.

 

KWAZULU-NATAL PROVIDENT FUND

Registrar of Pension Fund Reference Number: 12/8/26325

Registered Address: 40 Essex Terrace, Westville, 3629

Postal Address: P O Box 582, Westville, 3630 

Telephone Number:031-2667070

Facsimile Number:031-2672369

MEMBER BOOKLET 

The KwaZulu Natal Provident Fund (formerly known as the KwaZulu Natal Building Industry Provident Fund) was established on 1 June 1991.

Those who earn an income should provide for their future old age and have insurance to cover themselves against certain unforeseen events. Any of the following could happen to you in the future:

  • You could continue working until you retire;
  • You could leave your present job;
  • You could become ill or have an accident;
  • You could become disabled or even die.

The purpose of this Booklet is to provide you with a brief description of the benefits available under this Fund and, in addition, the Group life Assurance, Disability and Funeral Benefits are explained. This Booklet is only a guide, and your full rights under the Fund are governed by the formal Rules and Policies that are available to you upon request. In addition, the Fund’s latest Annual Financial Statements and the most recent Valuation Report may be inspected at 40 Essex Terrace, Westville.

In the event of any discrepancy between the Rules and this Booklet, the Rules of the Fund will prevail.

Please study this Booklet carefully so that you understand what the implications of being a member of the Fund are for you and your dependants.

Download Booklet (PDF) 

TYPE OF FUND

The Fund is a Defined Contribution Provident Fund, in other words, the end benefit to the member is determined by the contributions made to the Fund and the investment returns earned on these contributions. If the investments appreciate, the value of your benefit increases. If the investments depreciate, the value of your benefit decreases. This means you carry the investment risk. The objective of the Fund is to enable you to receive a lump sum (your Fund Credit) when you retire.

The South African government had amended legislation in order to harmonise the treatment of all types of retirement funds being. Pension, Provident and Retirement Annuity Funds. In other words, members of Provident Funds now have to use 2/3rds of their retirement benefit to purchase an annuity. The implementation date of this new legislation is 1 March 2021.

CONTRIBUTIONS TO THE FUND

The total contributions contributed to the Fund represents 16.0% of your pensionable salary. The full amount is paid by your Employer. Of this 16.0%, 11.5% goes towards your retirement benefit, 3.5% is used to pay for death benefits, funeral benefits and disability benefits, while the remaining 1.0% is used to meet the cost of the Fund’s expenses. The provision of Risk Benefits is subject to affordability and is therefore subject to change.

FUND CREDIT

Your Fund Credit is the sum of all the contributions allocated to your retirement benefit, increased or decreased by investment return. The amount of investment return you will receive will depend on the amount earned by the Fund’s investments which are managed by Asset Managers appointed by the Board of Trustees.

TAX ON BENEFITS

All benefits which become payable may be subject to tax and may, therefore, be reduced by an amount of money to be paid to the South African Revenue Services (SARS).

RETIREMENT BENEFIT

Retirement Age

The Normal Retirement Age is 60, but you may retire any time after reaching age 55. The later you retire, the higher your retirement benefit will be. You may claim your retirement benefit on date of leaving employment, on written confirmation from your Employer.

Pension Benefit at Retirement

Your Fund Credit can be paid in cash or it may be used to purchase a monthly pension from any Registered Insurer. On retirement from the Fund, your membership of the Fund will cease.

DEATH BENEFIT

If you die while a contributing member of the Fund prior to age 65, your beneficiary(s) will be paid a death benefit of 5 times your annual wage. For example, if your monthly wage is R4, 000 your life assurance benefit will be R240, 000 (R4, 000 x 12 months x 5).
Payment of the death benefit is subject to one contribution having been made within the two months prior to date of death. If death occurs within the first three months of membership of the Fund, unless death is as a result of an accident, the death benefit shall not be paid.

For contributing employees aged 65-70 years, a R100 000 cover plus fund credit is payable.

Fund Credit

Your beneficiary(s) will also be paid your Fund Credit.

NOMINATION OF BENEFICIARY

It is important that you nominate a beneficiary(s). This is necessary so that, in the event of your death, the Trustees will be aware of your wishes in respect of the benefits due, and to whom they should be paid. Should you decide, at any time, to change the nomination(s), you should inform the Administrator of the Fund as early as possible and complete a new Nomination of Beneficiary Form.
If you die, the Trustees will take your nomination of beneficiary(s) into account although they must decide on any allocation in terms of the Pension Funds Act.

FUNERAL BENEFIT

As a contributing member of the Fund prior to age 65, you and your immediate family will be covered for funeral benefits should you or a member of your immediate family die. The following benefits are payable:

  • You, your spouse, or children aged 14 to 21 years: R40 000
  • Children aged 6 to 13 years: R22 500
  • Children aged 1 to 5 years: R 16 000
  • Children aged 0 to 11 months: R 11 000
  • Children if stillborn: R 9 000

NOTE: An unmarried child is covered up to the age of 21 years and up to the age of 25 years if a full-time student. You must, at claim stage, be able to provide proof from a recognised educational institution that the child was a full-time student at date of death. Payment of the funeral benefit is subject to the member being a current contributor of the Fund at the date of death.

DISABILITY BENEFIT

If, as a contributing member of the Fund prior to age 65, and based on the medical evidence submitted, the Insurer of this benefit considers you to be totally disabled from performing your occupation, you will receive the following benefit after a period of three (3) months from the date of your disablement:

A disability benefit of 75% of your average salary during the period of 12 months preceding your disablement will be paid to you. For example, if your average monthly wage is R4,,000, your benefit will be R3,000 per month. This benefit will be paid for 21 months, and will commence after the 3 month waiting period has expired.

After the 21 month payment period, and if your disability is considered to be permanent and total, a lump sum benefit of 3 times your annual wage will be paid to you, and your membership of the Fund will cease. You will also be paid your Fund Credit.

Details of injuries and illnesses that are not covered for the above insured benefit are given in the Rules of the Disability Benefit Scheme.
Payment of the disability benefit is subject to one contribution having been made within the two months prior to date of disability.

WITHDRAWAL BENEFIT

If you leave the Industry before retirement, you may claim your Fund Credit on the date of leaving employment.

MANAGEMENT AND ADMINISTRATION OF THE FUND

The Fund has been established as a privately administered Fund, controlled by a Board of Management. The Board is made up of representatives of the employees and the employers.

Alexander Forbes Financial Services provide consulting and actuarial services for the Fund.

The KwaZulu Natal Master Builders & Allied Industries Association is the Administrator of the Fund.

The Fund is governed by a set of Rules that have been registered with the Registrar of Pension Funds.