KZNCIPF
Benefits
Withdrawal Benefits
If you leave the Clothing Industry before retirement, you will become entitled to a withdrawal benefit. The withdrawal benefit that is payable is the accumulated fund credit which contains all contributions and interest.
If you do not find work within the industry for 6 months from the date of withdrawal, you may apply for a withdrawal benefit.
What happens if I do not fill in a claim form?
Members of the Fund that leave the employ of their employer will become a paid-up member in the Funds until the Funds receive written instructions from the Member to make a cash payment or to transfer to another approved fund. The Paid-Up members are invested in the general portfolio of the fund and continue to earn fund returns until the date of payment.
Paid-Up Members will receive a Paid-Up Membership Certificate within 2 calendar months of becoming a Paid-Up Member.
The following conditions will apply to all Paid-Up Members:
– No new contributions will be accepted;
-You will loose all existing fund death & disability benefits;
-No deductions will be made from the
Paid-Up Member’s Fund Credit for risk
benefits;
The Paid-Up Member’s Fund Credit will remain in the investment portfolio that he/she was invested in immediately prior to the termination of service with his/her employer and incur investment and administration fees. In the event of death, retirement and early retirement, only the Member’s Fund Credit will be payable.
Retirement Benefits
The normal retirement age on the fund is 60 years and you will qualify for your retirement benefit. At retirement your benefit will be paid according to the most recent tax laws.
A member can opt for early retirement from the age of 55 following an agreement between the member and the employer.
The provisions of the most recent tax laws state:
Members who were under 55 years as at 01 March 2021 and who have accumulated total savings of R247,500 and over from 01 March 2021 to future date of retirement.
Receive full lump sum payout of contributions and interest that has been accumulated from date of employment to 28 Feb 2021 and 1/3 (one third) of contributions from 01 Mar 2021 till the date of retirement. An annuity for the equivalent of 2/3 (two thirds) the total contributions and interest earned from 01 March 2021 to date of retirement will be purchased if the contributions and interest from 01 Mar 2021 to the date of retirement is above R247,500.
Death & Disability Benefits
Should members pass away or become disable they are entitled to receiving a lump sum payout from the fund’s insurance policy. For Metro employees the lump sum death / disability payout is 1.5 times the annual salary and 1 times the annual salary for the Non Metro members. Therefore, the full benefit will be the members fund credit plus the insured portion.
Important to note: disability claim payments are paid in accordance with the Taxation Laws Amendment Act (Retirement Reform).