A pension fund dedicated to Municipal Employees

The primary objective of this Fund is to service the retirement needs of the previously disadvantaged employees within local Government so as to provide the most favourable retirement benefits to employees.


Municipal Employees Pension Fund

This webpage covers certain aspects of general interest and also provides a review of the most important benefits of the fund. This webpage does not replace the official Rules of the Fund. The Rules of the Fund, financial statements and actuarial valuation reports are available on request.



Contributions

 

By Member

By Council

Category-A

7.5%

22%

Category-B

7.5%

18%

Category-C

7.5%

15%

Benefits
Early Retirement Age 55:

Lump Sum equal to 1/3 of total benefit
PLUS: Monthly Pension for life

Normal Retirmement Age 65:

Lump Sum (1/3 of total benefit)
PLUS: Monthly Pension for life

PLUS:

13th Cheque every November and Annual Increase



Collateral Guarantees:
  • In terms of section 19(5) of the PFA of 1956, as amended.
  • Pension Backed Housing Loan available.
  • Maximum repayment period 20 years OR 64 years
  • Interest Rate: Prime rate
  • For members own property only

 

After Care Services:
  • Benefit Statement
  • Newsletter
  • Council Visits
  • General Meetings
  • Tracing of Beneficiaries
  • Pensioner Correspondence
Death Benefits (Pensioner):

Monthly pension spouse : = 50% of pensioner's monthly pension before death.

 

 

Resignation Benefits

 

 

 

 

 

 

 

Ill Health Benefits

 

 

 

 

Category-A

Lump Sum Only: The greater of 1.5 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary

 

 

Less than 10 years Service: 3 X Annual Salary (Lump Sum Only)

 

Category-B

Lump Sum Only: The greater of 1.2 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary

 

 

Less than 10 years Service: 2 X Annual Salary (Lump Sum Only)

 

Category-C

Lump Sum Only: The greater of 1.1 x TotalMember's Contributions OR Minimum Benefit calculated by the actuary

 

 

Less than 10 years Service: 1.5 X Annual Salary (Lump Sum Only)

 
 
 

 

Death Benefits (member)

 

 

 

 

 

Category-A

Leaving Spouse and/or Minor children - Lump sum equals (3) three times annual salary

 
 

 

Category-B

Leaving Spouse and/or Minor children - Lump sum equals (2) two times annual salary

 
 

 

Category-C

Leaving Spouse and/or Minor children - Lump sum equals (1.5) one and a half times annual salary

 

 

PLUS   Spouse and children monthly pension calculated at possible service
 
Leaving no Spouse and/or Minor children - Lump sum=the greater of once (1) annual salary or Twice the members contribution ONLY
 
Funeral Benefits
Member/Pensioner                                                                              R40000
Spouse                                                                                                        R40000
Children 14- 21 years                                                                         R25000
Children 6 - 14 years                                                                           R25000
Children 1- 6 years                                                                               R10000
Children younger than 1 including stillborn (26 weeks)  R10000 
 
Extended Funeral Cover: R25 000
You may add a maximum of four (4) additional adults to be covered, i.e a member's adult unemployed children, member's parents and parents in-law only.A six (6) month waiTing period applies for the 4 additional adults covered