Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Furniture Manufacturing Industry

KwaZulu Natal

Extension to Non-Parties of the Provident Fund and Mortality Benefit Association Collective Agreement

Chapter lll

19. Mortality benefits

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1 Upon the death of a member who had not attained the age of 65 years at the time of his death and on behalf of whom the Mortality Benefit Association received the contributions up to the day of his death, or who had not attained the age of 65 years and who ceased to contribute to the Association prior to his death for the reasons specified in sub-clauses 17(3)(a) and (b), the mortality benefits payable to the dependant shall, subject to sub-clause 19(6), be in accordance with Column A of the table below. Likewise, upon the death of a wife or child of a member where the Mortality Benefit Association had received contributions up to the date of such death, the mortality benefits payable to the member shall, subject to sub-clause 19(6), be in accordance with Column B and/or C of the following schedule:

 

SCHEDULE

 

Period of Member contribution

MEMBER

A

SPOUSE

B

EACH CHILD

C

Up to 2 years

1,020

-

-

2 years plus

1,500

600

400

3 years plus

1,980

600

400

4 years plus

3,000

600

400

5 years plus

3,600

800

480

6 years plus

4,200

800

560

7 years plus

4,800

800

640

8 years plus

5,400

900

720

9 years plus

6,000

900

800

10 years plus

6,600

1,000

960

11 years plus

7,200

1,000

960

12 years plus

7,800

1,200

1,040

13 years plus

8,200

1,300

1,120

14 years plus

9,000

1,400

1,200

15 years plus

9,600

1,500

1,280

16 years plus

10,200

1,600

1,360

17 years plus

10,800

1,700

1,440

18 years plus

11,400

1,800

1,520

19 years plus

12,000

1,900

1,600

20 years plus

12,600

2,000

1,680

 

2 Should a deceased member have no dependant(s), the Management Committee may, in its discretion, consider an application for an ex gratia payment in respect of the burial costs of such deceased member : Provided that should the Management Committee decide to make such payment, it shall not exceed the amount of R250 in the case of members referred to in sub-clause 19(1). The Management Committee's decision in regard to such application shall be final.

 

3 Where a deceased member has no dependant(s), the Management Committee shall transfer such amount as the deceased member would have received had he had dependants, less any ex gratia payments made in terms of sub -clause 19(2), to a reserve fund created for the payment of benefits to the dependants of non-contributing members who at the time of their death were not contributing to the Mortality Benefit Association for reasons specified in clause 17(3).

 

4 Depending upon such surplus as may have accrued to the non-contributory members' reserve fund created in terms of sub -clause 19(3), the Management Committee shall upon the death of a non-contributory member referred to in that sub-clause decide in relation to such deceased member's period of contributory membership, upon the mortality benefits to be paid, at the entire discretion of the Management Committee to the dependant(s) of such member, which amount shall not exceed R1,000.

 

5If at any time the amount to the credit of the non -contributory members' reserve fund falls below R1,000, payment in terms of sub-clause 19(4) shall cease. Payment of any benefits in terms of sub -clause 19(4) shall not be resumed until the amount to the credit of the non -contributory members' reserve fund exceeds R2,000.

 

6 Notwithstanding the provisions of sub -clause 19(5), should the amount in the non-contributory members' reserve fund exceed R1,000, but the total amount to the credit of the Mortality Benefit Association fall below R6,000, no payment shall be made until the requirements of clause 20(3) have been complied with.

 

7 The Management Committee may in its discretion transfer monies, in addition to the monies referred to in sub-clause 19(3), from the Mortality Benefit Association's accumulated funds to the non-contributory members' reserve fund should this reserve fund not be able to meet the commitments : Provided that the Association's accumulated monies shall not by such transfer be reduced to an amount of less than R15,000.