Bloemfontein Building Industry Provident Fund

Provident Fund and Funeral Rules

As a member of the provident fund, you will be entitled to:

  • A lump sum when you retire.
  • A death benefit (if you die before attaining the normal retirement age.)
  • A withdrawal (benefit if you leave your employer before attainment of the normal retirement age.)

In addition to the above provident fund related benefit the following benefits are offered by separate risk policies.

  • A disability (benefit if you become totally and permanently disabled before attaining the normal retirement age)
  • A funeral (benefit if you, your spouse or dependant child dies.)

The Bloemfontein Building Industry Provident Fund was established on 7 January 1991. The Master Builders and Allied Trades Association Free State (MBA FS) Provident Fund, which has been in operation since 1991, and the Kroonstad Building Industry Provident Fund , that started in 1989, forms part the Fund with effect from 1 November 2008.

All employees affiliated to the Construction Industry in the Free State are allowed to participate in the Fund as long as they comply with the definition of employee, described in the Fund’s Rules.

You and your employer contribute in equal amounts to the fund. Your employer will deduct your contribution from your wage and pay this, together with it’s contribution, to the Welkom Building Industry Provident Fund MBA (FS).

A portion of the contribution goes towards death, disability, funeral and administrative costs and the balance is used to provide retirement benefits.

The normal retirement age is 65 years.

Early retirement.

You may retire any time after age 55. The earlier you retire the smaller your retirement benefit become.

Late Retirement.

You may defer your retirement with the written consent of your employer if you want to continue working after the age of 65. If there is no break in your contribution record, you will retain your death benefit in terms of the rules until you reach the age of 65.

The amount of your lump sum will depend on the total contributions of you and your employer (less costs as described above) plus investment returns.

This is referred to as your accumulated fund value. Alternatively, you may purchase a monthly pension using some or all of your lump sum.

  • When you die, your dependants will receive an insured cash lump sum equal to 2 times your annual salary, together with your accumulated funds value. To qualify for the insured benefit, you have to at least have 10 stamps/contributions in the last 20 weeks preceding your death (3 months).
  • The Trustees of the Fund and the insurance company must be notified of your death within six months – waiting too long can invalidate the claim. The Trustees will pay the benefit according to the prevailing legislation. These will amongst other entail that the benefits awarded to minor children can be invested in a trust. Urgent monitory requirements can be paid from this lump sum at the discretion of the managers of the trust.

Note: All contributions have to be received by the MBA FS before the 7th of each month for these benefits to be applicable. Late payments will result in a three month waiting period. The outstanding provident fund payments will also attract interest.

What happens if you become disabled?

If you become totally and permanently disabled before the age of 65, you will receive a monthly pension equal to 40% of your monthly income.

This Pension is paid for as long as you are regarded as being disabled by the insurance company concerned.

You will remain a member of the Fund and as a result will continue to make contributions to the Fund. You will also enjoy death and funeral cover during this period.

To qualify you have to:

  • Be under 65 years of age.
  • Provide satisfactory medical evidence to the insurance company concerned.
  • Have been unable to work for at least 6 months after disablement.
  • Confirm that the disability was not caused by conditions such as alcoholism and self inflicted injuries.
  • You must notify the Fund within a month of your disability- waiting too long can invalidate your claim.

Note : All contributions have to be received by the MBA (FS) before 7th of each month for these benefits to be applicable. Late payments will result in a three month waiting period. The outstanding provident fund payments will also attract interest.

What happens if you leave your employer?

You have a choice of:

  • Transfer your contributions to another fund.
  • Take a cash refund of your share of the fund. You might be required to pay tax on this sum.

You will only become entitled to your accumulated Fund value if you have not worked for any participating employers for two months. If you start working again for a participating employer, you will continue to be an active member of the fund and will not qualify for the cash payment.

What your benefits will be:

Every year you will receive a personal benefit statement reflecting your illustrative retirement benefit, death benefit, funeral benefit and withdrawal amount. This statement will be provided through your employer or is obtainable from the MBA (FS)

  • Send your claim forms to the address below or call the office to complete your forms.
  • Please remember to bring original or certified copies of your I.D and were needed death, birth and marriage certificates.

The following persons are covered under this scheme:

  • Member : R 10000.00
  • Spouse : R 10000.00
  • Child (14 – 21 years) : R 10000.00
  • Child (6 – 14 years) : R 5000.00
  • Child (1 – 5) : R 2500.00
  • Child < 1 (Including stillborn) : R 1250.00
  • Join the fund before age 65 years.
  • Member is immediately covered after receiving first payment.
  • The last day of the month in which the insured attains the age of 70 years.
  • All cover ceases on the death of the Main Member or when he reached the age of 70 years or when a payment has not been made in time.

For more information please consult your employer or the MBA FS at the following address.



Physical Address:

6 Reitz Street
Doorn, Welkom

Postal Address:

P.O Box 542

Telephone: 057 352 6269
Fax: 057 353 2402

Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

Postal Address

P.O Box 12839

Telephone: 051 401 0657/42