© Master Builders KwaZulu-Natal 2017



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


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) 


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.


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.


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.


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 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.


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.


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.


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.


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.


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


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.

Retirement Funds