RETRENCHMENT BENEFIT

The Retrenchment Benefit is payable if a member is retrenched from employment. Reasons for retrenchment range from redundancy, company closures, or suspension of employer’s business operations, amongst others.

The benefit is payable regardless of age or contributory service of the member.

The benefit payable is made up of the total accumulated employee and employer contributions plus interest. The interest is recommended by the Actuary from time to time, based on the performance of the Fund’s investment assets. However, the Fund Rules provide that if a member who is aged between fifty (50) and fifty-four (54) years, with a contributory service of at least fifteen (15) years is retrenched, they should be introduced on a life pension.

Requirements for Processing Retrenchment Benefits

• An Advice of Withdrawal Form (Form BN1) should be completed by both the employer and the member and submitted to the Fund for processing.
• A copy of the member’s National Identification Document(National ID Card, Valid Passport, or a Driver’s License).
• A copy of the member’s last payslip showing year-to-date figures must be submitted for tax assessment purposes.
• Confirmation of retrenchment that should be in the form of either:
• A resolution by the Works Council endorsing the retrenchment by the Employer; or
• A letter of approval from the National Employment Council for the Mining Industry or from the Retrenchment Board.