Frequently Asked Questions
It is a condition of employment that all eligible employees of the Clothing Industry must become members of the Fund. This is in terms of the Clothing Industry Industrial Agreement, RGN No.320 of 1979 as amended.
You become an eligible employee when you are engaged by an employer in the Industry from the first working day of the month following that upon which you : -
- Have attained the age of sixteen years and
- Have twenty four hours service with an employer in the industry; provided that you are not over the age sixty years.
No –No medical examination is required on admission.
For the purpose of subscribing to the Fund the rate contribution 5% by an employee deducted from the salary or wage of a member of the Fund, of which 4% goes towards pension accumulation, 1% towards the Life Cover. To the sum so deducted, the employer contributes 7% of which 4% goes towards the member’s pension accumulation, 1%towards the Life Cover and 2% towards the Reserve Account.
At the end of the anniversary period of the Fund, which is 31st December every year, the Fund will issue out Benefit Statements showing the total contributions you have made during the year or since you joined the Fund.
If you leave employment by being discharged by your employer
Or voluntary resignation prior to retirement and you don’t enter employment within a period of six months you will receive a refund of your contributions including interest that would have been earned by the Fund.
If you become redundant as result of company closure or on retrenchment, you will be entitled to full benefits of the amounts held to your credit as if you were retiring at normal retirement date.
Subject to the Trustees being satisfied to the member’s ill health, you will be entitled to full benefits of the amounts held to your credit as if you were retiring at the normal retirement date.
An amount equal to two years of last salary due to the members together with a further cash sum determined by reference to the amount held to his credit for his pension which can be commuted in full.
If a member dies after retirement, payments will cease immediately unless a member has made provisions for a guaranteed payment period which has not expired at the date of death o provision for dependants which continues to apply at the date of death in terms of sub clause ( ii) of rule ‘23’.In this event payment of pension will continue until such a time as the conditions relating to the pension cease to apply. The rules booklet of the Fund can be obtained from the Funds offices at a reasonable fee.
Your dependants, in the following orders:-
- Surviving spouse and his/her dependents children or
- If there is no surviving spouse or dependent children, to any dependent or
- If there is no surviving spouse or dependent children or other dependents to his /her estate.
If the aggregate of the death benefits exceed an amount equal to twice the member’s annual salary or wage at death, any balance shall be utilized by the Trustees to secure a pension for the dependents of the deceased members at the discretion of the Trustees provided always that in the event of such pension amounting to less than ZWL3000 per month which can be amended by the Commissioner from time to time, the limitation on cash payment shall cease to apply.
The normal retirement date for each member will be the first day of the month following the attainment of age sixty years.
- At normal retirement date: - each member is entitled to a pension secured on his behalf during his period of membership. The amount available to secure the pension will be determined by the total contributions paid to the credit of the member and the value of bonuses awarded during the period of membership.
- Before normal retirement date :- with the consent of the employer, a member who has completed ten years service will have the option of retiring on the first day of the month which is five years or less prior to the normal retirement date. In such an event the member will receive the total contributions to the credit of the member and the value of bonuses awarded during the period of membership.
- After normal retirement date :- if a member and his employer agree that services of a member are to be retained after the normal retirement date subject to the approval of the Trustees, the retirement date may be deferred for a period not exceeding five years. In this event deductions and contributions will continue until the date of retirement of the member or the age of sixty five whichever is earlier and benefits will continue to accrue to the member.
The pension on retirement will be paid payment monthly in arrears and will continue to be paid during the lifetime of the pensioner. At the discretion of the member the pension may include provision for guaranteed minimum payment periods for the protection of dependents.
Yes, a member has the right to commute for a cash sum a portion of the pension to which he is entitled on retirement subject to such portion not exceeding one third of the amount available for the purchase of a member’s pension in terms of rule ‘22’
Requirements For Accessing Benefits And Powers of Trustees
(i)On normal withdrawal; before payment is made you must produce a left employment slip issued by your employer, produce your I.D. card and produce your pension number.
(ii)On ill health retirement; before payment is made you must produce a letter from your employer, a letter from the doctor and proof as in (i) above will be required.
(iii)On normal retirement; before payment is made you must produce as in (i) above.
(iv) On death; before payment is made proof as in (i) must be submitted with the death certificate. In this case two or more witnesses are required to enable the Trustees to determine the beneficiaries.
The Trustees have their discretional powers in the following circumstances:-
(i) the appointment of a lump sum benefits to be divided among all the dependents;
(ii) the appointment of a lump sum to be divided among the surviving spouse(s) and children;
(iii) the amount payable to the children of a member or pensioner;
(iv) the reinstatement of a surviving spouse pension that has ceased on re-marriage.
In terms of legislation at the issue of this guide the monthly pension contributions which you pay (including any contributions to any individual pension arrangement) are an allowable deduction for your gross taxable income up to a maximum amount prescribed from time to time, by the Commissioner of Taxes.
The various benefits payments made from the fund are fund are taxed in the following manner:-
(i) On withdrawal:
Your refund is taxable and the Fund must obtain a Tax Deduction Directive from the Income Tax Authorities for you before your refund can be paid out. This can lead to delays in the actual payment of the refund.
- A lump sum paid to your dependents on your death.
- Any pension payable to your spouse child or dependents is taxable.
(iii) On retirement
- If you elect to take the one third cash commutation on your retirement, this amount is not taxable and
The pension you receive after retirement is taxable as income
The Fund is managed by the Board of Trustees
Who are appointed in equal memberships from
both the employers’ representatives and the
employees’ representatives. The Fund complies with
provisions of the Insurance and Pensions Commission
and the Income Tax Act.
All queries should be directed to the Principal
Officer of the Clothing Industry Pension Fund.
From its inception the Fund’s until the year
1999 that the Trustees recognized that the
Fund’s investment portfolio was inadequate as
such felt that the investments should be spread
in order to increase income while at the same
time protecting the Fund.
It was resolved therefore that the Fund should
Invest in properties as a hedge against inflation
since the Fund had never invested in properties.