SEIFSA ANNUAL REVIEW 2021
A BRIEF HISTORY OF THE FUNDS THAT ARE ADMINISTERED BY MIBFA
The Metal and Engineering Industries Permanent Disability Scheme
Engineering Fund
The Permanent Disability Scheme was established in 1994 in order to provide a monthly income to members who become permanently disabled and unfit to carry out any occupation in the metal industries.
Industries
Pension
The Engineering Industries Pension Fund, being the continuation of the Metal Industries Group Life and Provident Fund with which the Metal Industries Group Pension Fund was merged with effect from 1 January 1995, was first established in 1957. Until 31 March 2012 the Engineering Industries Pension Fund was a Defined Benefit Fund. This means that the benefits that were payable in terms of the Rules were guaranteed and fixed in nature. The Fund bore the risk and benefits payable on retirement had to be paid as a monthly income and were payable to the member for the rest of his or her life. The Board of Trustees agreed to convert the active member section of the Fund to a Defined Contribution Fund from 1 April 2012. This was done in order to guarantee the long-term financial sustainability of the Fund. In a Defined Contribution Fund, member benefits are based on the members’ own contributions to the Fund, plus the employer’s contributions, plus interest earned from investing these contributions.
The Metal Industries Provident Fund The Metal Industries Provident Fund, a Defined Contribution Fund, was established on 1 May 1991. In this Fund, only the contributions are defined and benefits that are payable in terms of the Rules are payable as a lump sum. There is no monthly income on retirement. The member, therefore, carries the risk and is responsible for ensuring that s/he invests the lump sum wisely. On starting employment, workers can thus choose to belong to either the Engineering Industries Pension Fund or the Metal Industries Provident Fund.
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On joining either the Engineering Industries Pension Fund or the Metal Industries Provident Fund, members automatically assume membership of the Permanent Disability Scheme.
Metal and Engineering Industries Bargaining Sick Pay Fund The Sick Pay Fund, a Benefit Fund governed by the Friendly Societies Act, was established in 1978. These benefits are temporary in nature and are geared to assist employees in times when they have exhausted their sick leave and have no means of income while they are absent from work due to illness or confinement. The benefit also includes payment to employees who are on maternity leave for a period up to six months.
REPRESENTATION ON THE BOARD OF TRUSTEES The Associations affiliated to SEIFSA have elected representatives from Industry, together with employees of SEIFSA, to serve as Trustees on the Boards of Trustees of the Pension and Provident Funds. The Board of Trustees comprises an equal split of representation from both Employers and Labour, who meet at least four times per annum. Based on the level of knowledge and expertise that the Trustees have, they also serve on various sub-committees of the Board of Trustees, namely: • • • • • •
Governance Committee; Investment Committee; Death Claims & Communications Committee; Disability Committee; Actuarial and Benefits Committee; and Collaboration Forum.
The number of meetings held by the various subcommittees will vary, depending on the tasks at hand, and will normally precede a meeting of the Board of Trustees.
