Employees in the building industry are set to receive healthy retirement pensions, compared to the period before 2003. The projected monthly pension for future retirees should almost double for employees contributing to the Building Industry Bargaining Council's retirement funds. "The BIBC's retirement funds have shown remarkable improvement over the past 10 years, thanks to increased fund governance and active trustee involvement," said Arnold Williams, Secretary for Building Industry Bargaining Council (Cape of Good Hope).
In 2003 a member that worked in the industry for 35 years would only have received 32% of his/her final salary as a monthly pension, while members who joined since then could expect to receive 75% of their final salaries as a monthly pension after 35 years of uninterrupted contributions and if returns of 5% above inflation are achieved over the period.
The main reason for this improvement is the decrease in costs associated with administration and insured benefits. And, despite the decrease in costs, the death and funeral benefits have been improved.
- In 2003, 66% of a member's total contribution went towards costs - leaving only 34% for retirement fund accumulation.
- In 2013 only 20% of a member's total contribution will be used for costs - leaving a 80% to accumulate towards retirement
- Full details of the BIBC retirement fund performance is available on www.bibc.co.za
- Click on News, the document is named ""Building Industry Report Back (November 2012)"" and is located under the heading ""2013 NEWS ITEMS"".