Membership Benefits

In the Construction Industry Pension Fund a member is registered when the first deduction for pension is done, that is after working for 26.4 hours.

1. Retirement Benefits
Retirement benefits are paid to members being guaranteed for sixty months or life, that is if the member dies before the expiration of the sixty months from retirement the benefits are extended to the surviving dependants of the member or at the death of the member after retirement. If the member had elected a joint and survivorship option the pension payable to the nominated dependant will commence immediately. The following are the three scenarios a member can utilise on retirement:

• Normal retirement age is 60 for both men and women. On normal retirement, the pension payable is equal to the amount of pension purchased by the member’s contributions and the contributions made in respect of the member by the Employer, according to factors set out in the Agreement, and increased by bonuses declared from time to time.

• Early retirement is permitted on or after age 55, with the consent of the employer and if the member has been employed for at least 15 years. The amount of pension payable is the amount calculated as for normal retirement reduced by a factor depending on the age at retirement

• Late retirement is permitted with the agreement of the Employer, up to age 65 and contributions continue. The pension payable is equal to the pension purchased at normal retirement age, increased by appropriate factors as set out in the Agreement, PLUS the pension purchased by contributions made in respect of the member after normal retirement age increased by special factors which apply to these contributions.

2. Ill-health Early Retirement
ill-health benefits, these are awarded to any member that would have been compelled by health to cease working in the industry. The benefit is only purchased subject to production of a medical certificate from a medical practitioner or institution recommending the same. The benefit is purchased by both the employee’s and the employer’s contributions together with the bonuses declared by the fund. The benefit is paid as either a lump-sum or a pension for life, though with a guaranteed period of sixty months from commencement.

3. Death Benefits
Death benefits are in two forms, full death benefits and refund on death.

• in the case of full death benefits, the member would have died while in the service of the industry i.e. if the member dies within 36days after date of last contribution. In this case if the member had contributed to the fund continuously for 5 or more years, the benefit will be twice the annual salary or wage of the member at the time of death and if less than 5 years it will be once the annual salary or wage. This benefit is paid as either a lump-sum or pension over a fixed period depending on the benefit purchased the period varies between 10 and 20years.

• Whereas with refund on death the member would have died after having left the industry for a period in excess of the 36 days. In this instance a lump-sum payment which consists of the both the employee and the employer’s contributions together with interest that would have been earned by the fund.

4. Withdrawal
On leaving. service a basic benefit equal to the member’s contributions plus 1/25th of such amount for each year of contributory
service is payable. if the member has completed 5 or more years of service an additional amount equal to a percentage of the member’s own contributions with interest is also payable, up to a maximum of 100%, after fifteen years service. This benefit is taxable. The member may elect to receive a deferred pension payable from normal retirement date based on the total amount payable or a refund of the basic benefit in cash and a deferred pension based on the additional amount payable. Any deferred pension is retained within the Fund or transferred to another registered fund.

5. Overage Refunds
This refers to members who mistakenly continue to contribute after they were previously awarded benefit in retirement (ill-health, early, normal or late). The rules do not permit them to be members of the fund, their contributions are refunded immediately on receipt and a service charge is levied against them.


About us

The Construction Industry Pension is a successor to the Building Industry Pension Fund which was established on the 1 st of July 1969.