Retrenchment Benefit
The Retrenchment Benefit is payable if a member is retrenched.The benefit is payable regardless of age and service where the member has been made redundant or where a mine has closed down resulting in the member being redundant. Benefit paid is made up of total accumulated employee and employer contributionsplus interest recommended by the Actuary from time to time, or the member’s reserve in the Fund, which ever is greater. The reserve is the pension purchased by the member’s accumulated contributions (both employer and employee) adjusted by an age factor. However, if the member is fifty (50) years old with 15 years pensionable service or fifty five (55) years and above, he/she automatically qualifies for retirement.
- A completed Advice of Withdrawal Form, Form BN1.
- Confirmation of retrenchment:
– Resolution by the Works Council endorsing the retrenchment
by the employer, or
– A letter of approval from the National Employment Council
or the Retrenchment Board - Bank account details.
- National ID copy.
- Copy of payslip.
Retirement Benefit
Early Retirement
Normal Retirement
Late Retirement
On attaining the age of fifty five (55), a member can opt to go on early retirement.
The member can also opt to go on early retirement provided he/she has reached the age of fifty (50) and has contributed to the Fund for at least 15 years.
On reaching the age of 60, a member is due for normal retirement. A member can however opt to defer retirement for a further period of not more than 5 years
If at normal retirement age, a member opts to defer his/her retirement, he/she is not eligible to continue as a contributing member of the Fund after attaining the age of 65.
Retirement Options
Requirements for Processing
When going on retirement, the member can select one of the following options:
• Full monthly pension option
• One third commutation plus reduced monthly pension
• Full monthly pension on Joint and survivorship monthly pension
• One third commutation plus reduced joint and survivorship monthly pension
• A completed Advice of Withdrawal Form, Form BN1 should be submitted by the employer.
• A copy of the member’s National ID.
• A copy of the member’s last payslip.
• A letter of pension options will be sent so that the member can select a pension option.
• A completed copy of the pension option letter and BN2 form should be submitted to MIPF before payment can commence
Retirement Options
One Third Commutation
Monthly Pension
Joint and Survivorship
- Payable as a lump sum
- Limited to 1/3 of the capital value of pension
- This can either be a full monthly pension or can be reduced after commuting the 1/3.
- If a full pension is selected there will be no commutation option.
- Pension is guaranteed for 5 or 10 years and thereafter for life.
- It is an option where the member chooses to have a lower monthly pension in order to build in protection for his/her beneficiaries in the event of his/her death.
- This option is taken with a designated beneficiary e.g. spouse, adult child, brother or sister.
- Proof of age should be submitted in respect of the beneficiary and proof of marriage in respect of the spouse.
- Pension is guaranteed for 5 or 10 years and thereafter for life.
Pension Guarantees
The guarantee period provides continuity of the pension to beneficiaries in the event of the death of the pensioner. If the pensioner outlives the guaranteed period, the Fund is obliged to pay the pension until he/she dies. Where a Joint and Survivorship option had been selected and either the pensioner or the designated beneficiary outlives the guaranteed period then the Fund is obliged to pay the pension until the last survivor dies.
NB: The member cannot opt to be paid a 100% commutation (full pension lump sum) if his pension per month is more than the limit prescribed by the regulations and currently, it is ZWL $500 per month. This limit is revised by the Commissioner of Insurance and Pensions from time to time.