In the past, members did not always receive employers’ full share of
contributions, but change in the legislation stipulated that the surplus
had to be distributed to members who left the industry after 1980. To
date, the Funds have paid out approximately R20 billion in surplus to
over 400 000 past and current members and pensioners, making it one
of the largest surplus distributions in South Africa.
superior investment returns
The industries pension and provident Funds also provide superior
investment returns at low investment fees due to the investment strategy
of the Board of Trustees. The strategy combines a spread of shares,
bonds and cash investments managed by MIBFA as well as a number
of external asset managers. This strategy has ensured consistent top-
quartile investment returns.
Mr Calomiti says that the Funds have also been very successful in
collecting arrear contributions through the Bargaining Council in the
interest of protecting the workers.
“Another step geared towards the workers’ protection is that the
Funds have recently obtained approval from the Financial Services Board
to allow provident fund members over 55 years who are leaving the
industry to transfer in monies to the Pension Fund if they wish to do
so, instead of withdrawing their contributions. This, in fact, is, one of the
major highlights of the Fund’s achievements in 2017. It affords those
leaving the industry security of a pension, which they can obtain at no
broker fee. Previously, this was not allowed,” says Mr Calomiti.
In addition to this, MIBFA has also introduced a Pension option with
20 year guaranteed widows pension option, which means that when
members retire their full pension is guaranteed for 20 years in the event
that the main member dies, the Fund continues to pay the full pension
benefit to the member’s spouse for 20 years. Thereafter a spouse’s
pension is paid for his/ her lifetime.
“Furthermore, our pension fund currently pays approximately 29
000 pensioners a monthly pension, taking a huge financial strain off
the Government’s shoulders. These funds, therefore, provide a social
security net for former industry members, which takes huge pressure
off the Government’s social security spend,” Mr Calomiti says.
To ensure that services offered by MIBFA reach all members, the Funds
have representation in Durban, Cape Town, major industrial centres as
well as in each Bargaining Council office throughout the country.
Promoting the interest of
Electrical Manufacturers
for 83 Years
If your company is in any way connected with the electrical manufactur-
ing and supply industries of South Africa, then you should know that the
Electrical Engineering and Allied Industries Association (EEAIA) exists
to promote your interests and that of the industry generally. The EEAIA
was established in 1935 and it is a member of SEIFSA and it acts as a
common meeting ground for companies in the industry where knowl-
edge, ideas and experience are exchanged and stimulated.
Our members manufacture, assemble, wire, supply, install, maintain and
repair a wide range of electrical products such as generators, motors,
convertors, switch and control gear (including relays, contactors,
electrical instruments, electrical switchboards, electrical panels, motor
control centres and other associated equipment), electrical lighting,
heating and cooling equipment, primary and secondary cells and batter-
ies (other than motor car batteries), transformers, furnace equipment,
signaling and electronic equipment, electric cables (comprising insulated
and uninsulated conductors) and lamps and luminaires.
Join 156 leading companies (employing in excess of
15 000 employees) in the electrical manufacturing and
supply sector of South Africa to:
• Communicate meaningfully and effectively with government and
regulatory authorities
• Have a collective voice on prominent issues affecting your industry
• Get close to matters affecting your industry and your business
• Enjoy all the benefits of falling under the SEIFSA umbrella
(www.seifsa.co.za)
• Be represented on relevant SABS/STANSA committees
• Exchange knowledge, ideas and experience
• Negotiate collectively with trade unions
• Mix with the leaders in your sector
Contact details:
Administrator: Christa Smith
[email protected]
Cell: 083 444-1365
SEIFSA
AT AT
75 75 - SPECIAL COMMEMORATIVE MAGAZINE
SEIFSA
89
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