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Statutory Duties of the Employer

Upon registering with the National Employment Council for the Construction Industry, every contractor / employer immediately assumes the following statutory duties.

1. Enrolling eligible employees

  • Employers are responsible for ensuring that all eligible employees are members of the in the Construction Industry Pension Fund (CIPF). This includes temporary, part-time, and casual employees.
  • Employees must be enrolled within 30 days of starting employment.
  • Employers must provide new employees with information about the CIPF, including the benefits of membership and how to contribute.
  • Ensure all employees complete and submit a declaration form upon enrollment.

2. Deducting and remitting pension contributions timeously.

  • Employers are responsible for deducting and remitting pension contributions to CIPF and shall submit a monthly return together with the proof of payment by the 14th day of the following month to which the contributions relate.
  • The contribution rate is 5% employee deduction and 7% employer contribution.
  • Pension deductions and contributions are to be made in the currency in which the wage or salary was paid.
  • Failure to pay pensions contribution to the Fund within 14 days of the end of the month in which the contributions were deducted shall render the Employer liable to a late payment interest charge accrued at the higher of the minimum unsecured lending rate of the Fund’s bankers and the return earned by the Fund.

3. Providing information to the CIPF

  • Employers are responsible for providing complete and accurate information to CIPF about their employees, including their names, addresses, and dates of birth as per the Fund monthly return schedule.

4. Keeping records

  • Employers are responsible for keeping records of the contributions they have made to the CIPF on behalf of their employees.
  • These records must be kept for at least six years.

The Benefits of Employers Having a Pension Plan for Their Members with Construction Industry Pension Fund

A pension plan with CIPF accrues several benefits to the employer.

  • Attract and retain top talent

    A pension plan can be a very attractive benefit to prospective employees, especially for older workers who are closer to retirement and may be more concerned about retirement income security. By offering a pension plan, employers can attract and retain the best talent in the construction industry.

  • Improve employee morale

    Employees who participate in a pension plan tend to be more satisfied with their jobs and have a higher level of overall morale. This is because they know that they are saving for their retirement and that they will have a source of income after they retire.

  • Increase productivity

    When employees are not worried about their financial future, they are more likely to be focused and productive at work. A pension plan can help to take the stress out of employees' lives, which can lead to increased productivity.

  • Reduce turnover

    Employees who participate in a pension plan are less likely to leave their jobs. This is because they know that they will lose their pension benefits if they leave their job. By reducing turnover, employers can save money on the cost of recruiting and training new employees.

  • Save on payroll taxes

    Employers can also save money on payroll taxes by offering a pension plan. This is because contributions to a pension plan are deductible from the employer's income tax.

  • A pension plan can help to diversify your employees' retirement savings

Importance for Employers to submit complete and accurate member information to the Construction Industry Pension Fund (CIPF)

  • To ensure that eligible employees are enrolled in the CIPF and receive their benefits. Employers are responsible for enrolling all eligible employees in the CIPF. This includes temporary, part-time, and casual employees. If an employee is not properly enrolled, they will have difficulties accessing their pension benefits.
  • To improve the efficiency of the the administration of the fund. Accurate information can help to make the CIPF more efficient and can also help to improve the quality of service that the CIPF provides to its members.
  • Accurate member information ensures that members receive the correct benefits: This includes retirement benefits, death benefits, and disability benefits. Incorrect information can lead to members not receiving the benefits they are entitled to, or receiving the wrong amount of benefits. Download CIPF monthly return template.
  • To comply with the law. Employers are required by law to submit accurate information to the Fund. Failure to do so can result in penalties, including fines and imprisonment. Accurate member information helps to protect the employer from legal liability: The CIPF has strict rules about the information that employers must submit. If an employer fails to submit accurate information, it may be subject to fines and penalties. In some cases, employers may even be sued by members who have been harmed by incorrect information.
  •  Accurate member information helps to protect the integrity of the CIPF: If the CIPF does not have accurate information about its members, it cannot manage its funds effectively. This can lead to financial losses for the CIPF and its members.
  • Reduce the risk of errors and fraud. Accurate information can help to prevent errors in the administration of the CIPF and can also help to reduce the risk of
  • Accurate member information can help to improve decision-making: The CIPF uses member information to make decisions about how to invest its funds, how to pay benefits, and how to improve its services. Accurate information is essential for the CIPF to make informed decisions that are in the best interests of its members.

Important Notice.

Employers are therefore notified that all payments in respect of pension contributions are payable directly into the Fund’s Bank accounts, view banking details

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