The fund rules only allow for you to claim your fund credit/ withdrawal benefit when you resign from the motor industry.

It is important to note from the above rule that fund membership is aligned to employment in the motor industry and not to a particular employer in the motor industry. Thus, an employee may move from one employer to another in the motor industry and that member will continue to be a member of the Funds and contribute to them.

Upon resignation, your fund credit/ withdrawal benefit is only payable if you leave the motor industry.

1. You may elect to transfer a part or the whole benefit to another approved fund.

You may transfer your full benefit, or a portion thereof, to another approved fund in South Africa. Approved funds are another employer’s pension or provident fund, a preservation pension fund, preservation provident fund or a retirement annuity.

Any portion that you take in cash will be taxed by SARS, in accordance with the tax tables. The tax tables are available on the SARS website (www.sars.gov.za)

Any portion transferred to another approved fund are tax-free.

2. You may elect to leave the whole benefit in the fund.

Your fund credit/withdrawal benefit will remain in the fund and will continue to participate in the fund’s investment returns. No further contributions will be permitted. You can retire from the fund at a later stage.

3. You may elect to take the whole benefit in cash.

The tax payable on the withdrawal benefit is determined by the Second Schedule to the Income Tax Act. The tax on the lump sum benefit is set out in the withdrawal and retirement tax tables which are available on the SARS website (www.sars.gov.za)

The Funds retirement age is age 65.

A member may opt to go on early retirement once they turn 55 years. The fund rules allow for members to retire later than age 65, but no later than age 70.

A member can remain on the fund and continue to contribute to the Fund until the age of 70, provided they remain employed in the motor industry.

The portion of your fund credit, which is accumulated before 1 March 2021, may be taken in cash. You may also purchase an annuity with any part the fund credit accumulated before 1 March 2021.

The portion of your fund credit, which is accumulated after 1 March 2021, will be treated similar to a Pension Fund.

Only up to one-third of the fund credit accumulated after 1 March 2021 may be taken in cash.

You must purchase an annuity with the balance of the fund credit.

If the full fund credit accumulated after 1 March 2021 is less than R247 500, you may take this full benefit in cash.

The Fund suggests Just Insurance as its preferred annuity option for retiring members. Kindly contact us at query@mifa.org.za for assistance with this option.

If you become incapacitated and are no longer able to perform your own occupation you may apply for an ill-health retirement benefit.

The benefit is the member’s Fund Credit PLUS three times the last determined annual remuneration (the risk benefit portion is subject to an incremental scale during the first five years of membership). Benefit can be paid as a lump sum or part or all of it can be used to purchase an annuity on the member’s election.

The benefit is subject to medical assessment.

Should you die before retirement and while contributing to the fund, your beneficiaries will receive your Fund Credit at date of death PLUS three times the last determined annual Remuneration.

Payment distribution is made in terms of Section 37C to dependants and
nominee

The Rules of the Funds allow for a pension-backed housing loan through Standard Bank.

Kindly contact Standard Bank at 086 100 9429 or email them at PBLLoanorigination@standardbank.co.za.

You may make additional contributions up to 27.5% of your salary , but not more than R350,000.00 p.a. This is classified as voluntary contributions.