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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

National Bargaining Council for the Clothing Manufacturing Industry

Consolidated Provident Fund Collective Agreement for the KwaZulu-Natal Region

9. Amount of Benefit

 

(1)        Withdrawal Benefits—

 

A. In respect of members who were subject to the scope of clause 1(1)(b) of this Agreement:

 

Upon a member becoming entitled to a withdrawal benefit, he shall be entitled to—

(a) a refund of this member’s account; and
(b) a refund, for each completed year of service [subject to a maximum of 10 (ten) years of service], of 10% (10 percent) of his employer’s account; and
(c) 50% (fifty percent) of the annual rate of return and the interim rate, as applicable, declared in clause 10:

Provided that a member who withdraws in terms of this subclause (1), may elect in writing to the Management Committee prior to the date of his withdrawal that, instead of receiving the above benefit as a lump sum, he receive the following benefit to be transferred in respect of him to another provident fund or a pension fund operated by his employer:

(i) A refund of his member’s account; and
(ii) a refund of his employer’s account; and
(iii) the full annual rate of return and the interim rate, as applicable, declared in terms of clause 10.

 

B. In respect of members who were subject to the scope of clause 1(1)(c) of this Agreement:

 

A contributor whose membership ceases as a withdrawal benefit, shall be paid his full fund credit.

 

In the event of a contributor re-entering the Industry after having been paid a benefit, his completed years of service shall then be calculated from the date on which he re-commences the payment of contributions.

 

Provided that a member who withdraws in terms of this sub clause (1), may elect in writing to the Management Committee prior to the date of his withdrawal that, instead of receiving the above benefit as a lump sum, he may elect to have it transferred to another provident fund or a pension fund operated by his employer.

 

(2)        Retrenchment benefits—

 

Upon retrenchment a member shall be entitled to—

(a) a refund of the member"s account;

PLUS

(b) a refund of his employer"s account; and
(c) the full annual rate of return and the interim rate, as applicable, declared in terms of clause 10.

 

(3)        Retirement benefits—

(a) Upon retirement from the Fund a member shall be entitled to—
(i) a refund of the member"s account;

PLUS

(ii) a refund of his employer"s account;

PLUS

(iii) the full annual rate of return and the interim rate, as applicable, declared in terms of clause 10.
(b) if the member remains in employment and does not claim his retirement benefit within 3 (three) months of the date he reaches retirement age, the provisions of subclause (5) shall apply to him.

 

(4)

(i) Optional early retirement: Where a contributor is within 5 (five) years of the normal retirement age and his employer agrees in writing, the contributor may elect to retire early, in which event his benefit shall be determined in the same manner as in subclause (3) of this clause.
(ii) Notwithstanding the provisions of subclause (4) (1) above, a member who is subject to illhealth may, at any time before the normal retirement age, apply to the Management Committee to be placed on early retirement, without having to obtain the consent of his employer. Such application shall be considered by the Management Committee, which shall call for and obtain such medical evidence as it may require in order to determine the state of the member"s health. For the purposes of this clause, the Management Committee shall be the sole arbiter as to whether a member is subject to ill- health. If the Management Committee so decides, the member shall be entitled to an ill-health early retirement benefit, which shall be determined in the same manner as in subclause (3) above.

 

(5) Optional late retirement: Where a contributor reaches his normal retiring age but remains in employment, the contributor may elect to retire at some later date, when he will be entitled to the benefits determined in the same manner as in the subclause (3) (a) on such later date.

 

(6) Disability benefit: Upon a claim being admitted by the underwriter of the Group Disability Policy effected by the Fund, a contributor shall be retired from the Fund and, in addition to the benefit he receives in terms of subclause (3) (a) upon such retirement, the member shall also receive the full amount of the proceeds of any claim so admitted under the Group Disability Policy. This benefit shall not apply in respect of members who were subject to the scope of clause 1 (1) (c) of this Agreement and in respect of whom contributions had been made in terms of clause 6 (2) (b) of this Agreement.

 

(7) Death benefit: In the event of the death of a member the benefits shall be determined in the following manner:
(a) A contributor—
(i) the full amount of the proceeds of any claim admitted by the underwriter under a Group Life Assurance Policy effected by the Fund, provided the member was subject to the scope of clause 1 (1) (b) of this Agreement and in respect of whom contributions were made in terms of clauses 6 (1) and 6 (2) of this Agreement;

PLUS;

(ii) an amount determined in terms of subclause (3) (a), as if he had retired the day before his death.
(b) A paid up member, exempt member or member who has opted for late retirement an amount determined in terms of subclause (3) (a) as if he had retired the day before his death.

 

(8) Funeral Benefit:

 

In the event of the death of a member in service prior to his normal retirement age, the full amount of the proceeds of any claim admitted by the underwriter under a Group Funeral Policy affected by the Fund shall become payable in addition to the benefit referred to in subclause (7)(a).

 

This provision shall not apply in respect of members who were subject to the scope of clause 1 (1) (c) of this Agreement and in respect of whom contributions had been made in terms of clause 6 (2) (b) of this Agreement, until such time as the Management Committee of the Fund has decided to extend those benefits to such members.

 

(9)

(a) For a period of up to three (3) months, contributions from a contributor shall, for the purposes of determining a member"s benefits, be deemed to have been received by the Fund, provided that such contributions were deducted from his earnings, notwithstanding the fact that such contributor"s employer may not have actually paid such amount of money to the Fund.
(b) No contributor shall be prejudiced in respect of any period of employment of up to three months during which he should have contributed to the Fund, but in respect of which his employer failed to submit contributions.
(c) If an employer fails to contribute amounts due by him in terms of clause 6 (2) (b), for a period longer than 3 (three) months, the contributors then in the employment of that employer shall, in accordance with the policy of insurance issued by the underwriter, no longer be covered for the death and disability benefits referred to in subclauses (6), (7) and (8).
(d) The trade union shall be advised after one month"s non-payment of contributions by an employer as contemplated in subclause (9) (c) above.
(e) Benefits shall be calculated on the basis of contributions actually paid and deemed to have been paid during a member"s service.

 

(10) For the purpose of calculating any benefit, the actual period to be taken into account, shall be actual service to midnight on the last day of employment prior to the member becoming entitled to claim such benefit.