The Tourism Industry Pension Fund is a Self Administered Fund established in 2014 and registered with the Insurance and Pensions Commission in terms of the Pension and Provident Funds Act [ Chapter 24:09].
Employer Eligibility Requirements: It is a statutory requirement for every employer whose operations are classified as Tourism and Hospitality to facilitate the joining of the employees onto Tourism Industry Pension Fund.
Employee Eligibility Requirements: It is a requirement and condition of employment that all eligible Employees registered with the NEC Tourism and Hospitality Industry must become Members of the Fund as stipulated in SI 122 of 2015. All employees that are below the age of sixty-five (65) years are supposed to subscribe to the Fund.
How much does the employer contribute?
The Employer contributes 5% of the basic salary for each and every employee in his service.
Payment Deadlines
The Pension and Provident Funds Regulations provide that the employer should remit current month pension contributions by the 14th of the following month. The employer is also required to submit contribution schedules that show members’ personal details such as their names, dates of birth, national identification details, gender, basic salary, employer contribution amount and employee contribution amount for each employee. The contributions schedules, together with the proof of payments must be submitted to the Fund not later than 14th of the following month to which they relate.
Law stipulates that it is a criminal offense to deduct pension contributions and fail to remit them to the Fund. It is therefore provided that interest should be charged on all outstanding contributions, at a rate equivalent to the unsecured overdraft lending rate charged by the respective pension fund’s bankers.
How much does the employee contribute?
TIPF contribution rates are 5% for the Employee and 5% for Employee making a total of 10% of the basic salary. Employees are allowed to make additional voluntary contribution (AVCs) to enhance their pension savings and take advantage of the tax concessions. Pension contributions are tax deductible.
In order to keep track of the member’s contributions, a Benefit Statement is sent out annually. The statement should be checked for the correctness and accuracy of all the details. If there are any details that are not correct, the member should contact the Fund immediately in order to facilitate the correction of the wrong details
Death In Service:
If a member dies in service before attaining Normal Retirement Age and is survived by a Spouse or other Dependants they shall be entitled to Group Life Assurance (GLA) benefit equal to two (2) times pensionable Annual Salary.
The Tourism Industry Pension Fund is a Self Administered Fund established in 2014 and registered with the Insurance and Pensions Commission in terms of the Pension and Provident Funds Act [ Chapter 24:09].