Retirement Fund News
Permanent disability benefits: Auto Workers Provident Fund and Motor Industry Provident Fund (“the Funds”)
Dear Participating Employer
In terms of the registered Rules of the Funds, if a member becomes disabled through accident or ill health and has become continuously and permanently unable to perform his usual work (permanent disability) whilst in the services of his/her employer, and prior to reaching his/her normal retirement age, the member qualifies for a lump sum disability or ill health benefit.The benefit is paid from the Fund and equals to the:
- Member’s Fund Credit, plus
- Three (3) times his/her last determined remuneration (“risk benefit”).
It is important for all participating Employers(“Employers”) and Employees (“Members”) to understand that the disability benefit becomes payable, only if and after the Fund is satisfied that the member is continuously and permanently disabled and cannot perform his/her usual work in the motor industry.
When assessing a permanent disability claim, the Funds will consider medical reports and other information, including that the provisions of the Labour Relations Act (“LRA”) on incapacity have been complied with by Employers. The LRA requires that if the incapacity is permanent, the Employers should ascertain the possibility of securing alternative employment or adapting the duties or work circumstances of the employee to accommodate such employee’s incapacity.
Certain Employers terminate the services of employees for incapacity, before the submission of a permanent disability claim for assessment and approval by the Funds. The consequence of this early termination of service is that should the claim be repudiated by the Funds, the employee will be left without employment whilst also not qualifying for a permanent disability benefit. Although the employee could appeal against the outcome of the Funds’ decision, by submitting a new medical report from a specialist doctor with any new and up to date functional information, it is not guaranteed that the appeal will be successful.
The Funds therefore appeal to Employers to submit the completed application forms, accompanied by supporting medical information to the Funds as early as reasonably possible.
Application forms and required documents can be submitted to: firstname.lastname@example.org
11 August 2023