How does provident fund work? If you are in formal employment, you have definitely noticed at least one deduction from your salary going towards a provident kitty. Do not worry, this money is usually paid by the employer to a relevant retirement or provident reserve such as the MIBCO provident fund South Africa for those in the motor vehicle industry. Upon your retirement or exit from the company, you will get a generous sum for all your hard work.
What is MIBCO all about? The Motor Industry Bargaining Council (MIBCO) provident fund payout is dependent on the grade of work. Just like normal tax, MIBCO rates of the payments you make are directly proportional to the amount of money you make. However, regardless of the grade of work you are in, your employer will make a payment of 15.5% of your pensionable salary or remuneration every week. So, when I exit the company, how do I claim my MIBCO provident fund? Read on to find out.
Claiming Motor Industry Bargaining Council provident fund
The reason as to why money is deducted towards a provident fund is to offer workers a lump sum of payment upon retirement or exit from the workplace. Unlike pension funds, provident reserves are paid in lump sums and have no monthly payments. Claiming your MIBCO provident fund when you exit employment is your right as an employee since it is your money. You can claim your MIBCO benefits funds for sick accident, maternity, death benefits, and additional holiday pay funds when you leave an employer, and here is how to go about it.
How do I claim my MIBCO benefit fund?
The process of making a claim for your Motor Industry Bargaining Council benefit fund is actually straightforward. The types of payouts are varied such as sick, accident, and maternity kitty, MIBCO provident fund death benefits, and additional holiday pay funds. Each of these types has an accompanying claim form for claiming your payout. Generally, as an employee, you will need the following details:
- Your full name as well as your council number. You obtained the council number upon registration with MIBCO
- Your identity number
- Your contact number
- The start date of your leave as well as the reason for going for the leave, if applicable. You can also get the provident reserve payout on resignation and not just when you want to go on leave.
- If applicable, the period you will be absent from work due to things like sickness or injuries. In this case, you are also required to have a certificate from the medical officer confirming that you are unfit for work.
Aside from your personal details, you may also need the employer details. These include:
- The name of the company.
- The code of the company. The code is given to the company upon registering with MIBCO. Keep in mind that it is necessary for your employer to be registered. To be on the safe side, get in touch with the Regional Motor Industry Bargaining Council office for confirmation.
Finally, you also need to have your payment details ready. You can use Electronic Funds Transfer (EFT) to get your money. In this case, you will need the following details:
- The name used for the account.
- The name of the bank with the above account as well as its branch code.
- The account number.
According to the MIBCO rules, an EFT payment will only be done directly to your account as opposed to accounts held by third parties. In some cases, such as the Additional Holiday Pay Fund, the benefit is taxable so you should factor that into your calculations. Once you have the relevant details, go ahead and fill the MIBCO claim forms that are relevant to you. Note that you will have to click on "Left Employer" on the relevant form for your MIBCO provident fund claim to be processed.
How long does it take for a provident fund to be paid out?
Obviously, there are valid questions that pop up at this stage of the application. For instance, how long does MIBCO provident fund take to pay out? The answer is that the process varies because MIBCO goes through the applications as they are received. Make sure that you submit the needed documents and meet all requirements. If you feel like yours is taking too long, it may be because the volume of applications is high or there is a problem with your application. Feel free to follow up.
As you can see, the process of claiming your MIBCO provident fund is not hard. You also have a channel of complaint with MIBCO in case your employer breaks the mandatory registration outlined in the motor industry provident fund rules. Otherwise, you should not have any issues with getting what is hopefully a fat payout!
Source: Briefly News