COPARTES PENSION FUND - MIRF€¦ · Industry Fund Administrators (Pty) Limited and the...
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14/07/2016 C O P A R T E S P E N S I O N F U N D (Registered in terms of the Pension Fund ACT No. 12/8/566) RULES
Transcript of COPARTES PENSION FUND - MIRF€¦ · Industry Fund Administrators (Pty) Limited and the...
14/07/2016
C O P A R T E S P E N S I O N F U N D
(Registered in terms of the Pension Fund ACT No. 12/8/566)
RULES
(i)
C O P A R T E S P E N S I O N F U N D
R U L E S
TABLE OF CONTENTS
RULE1-NAMEANDOBJECTOFTHEFUND.......................................................................1
RULE2-DEFINITIONS..............................................................................................................2
RULE3–ADMINISTRATION....................................................................................................6
(1) MembershipofBOARD....................................................................................................................6
(2) TermofOffice..................................................................................................................................6
(3) RemovalofBOARDmembers...........................................................................................................6
(4) Eligibility..........................................................................................................................................6
(5) FillingofVacancies..........................................................................................................................7
(6) REMUNERATION..............................................................................................................................7
(7) MeetingsoftheBOARD...................................................................................................................7
(8) Quorum...........................................................................................................................................7
(9) Resolutioninwriting........................................................................................................................7
(10) ControlofBOARD........................................................................................................................7
(11) BOARDasTrustee.......................................................................................................................8
(12) Nosecurityrequired....................................................................................................................8
(13) Managementandadministration................................................................................................8
(14) (a)Indemnification.....................................................................................................................8
(b) Insurance.........................................................................................................................................8
(15) Annualauditedaccounts.............................................................................................................8
(16) (a)Bankingand/orotheraccounts..............................................................................................8
(b) Investmentsandregistrationofassets........................................................................................9
(17) (a)Actuarialinvestigation...........................................................................................................9
(b) Increaseofcontributions/benefits/bonus....................................................................................9
(c) Contingencyreserves.......................................................................................................................9
(d) Pensionincreases..........................................................................................................................11
(18) Incidentalexpenses...................................................................................................................11
(19) Contractsandotherdocuments................................................................................................11
(20) Safekeeping..............................................................................................................................11
(21) DelegationofFunctionsoftheBOARD......................................................................................11
RULE4–ASSOCIATIONWITHTHEFUND........................................................................13
(1) (a)ApplicationforparticipationbyEMPLOYER..............................................................................13
(2) (a)Admissionconditions................................................................................................................13
(b) PASTSERVICESCHEME...................................................................................................................13
(c) Approvalofapplication.................................................................................................................13
(3) ChangingclassesofEMPLOYEES.....................................................................................................13
RULE5–MEMBERSHIP.........................................................................................................15
(1) (a)ApplicationformembershipatFIXEDDATE..............................................................................15
(b) ApplicationformembershipafterFIXEDDATE...............................................................................15
(c) (i)EvidenceofhealthatFIXEDDATE..............................................................................................15
(ii) Medicalevidenceofhealth............................................................................................................15
(iii) Concealedinformationregardingstateofhealth.......................................................................15
(2) Membershipandcessationofmembership...................................................................................16
(3) LegaleffectofprovisionsofRULES.................................................................................................16
(4) CorrectinformationtoBOARD.......................................................................................................16
(5) Probationaryemployment.............................................................................................................16
RULE6–CONTRIBUTIONS...................................................................................................17
(1) EMPLOYEE'Smonthlycontribution................................................................................................17
(2) Contributionsduringperiodofleave..............................................................................................17
(3) ContributiondeductionfromREMUNERATION..............................................................................17
(4) EMPLOYER'Smonthlycontribution................................................................................................17
(5) RemittanceofcontributionstoFund..............................................................................................17
(6) Adjustmentinsalary......................................................................................................................18
(7) Additionalcontributions................................................................................................................18
RULE7–BENEFITS.................................................................................................................19
(1) Retirementbenefit........................................................................................................................19
(2) Retirementcommutation..............................................................................................................19
(3) Pensionpayments.........................................................................................................................19
(4) Earlyretirement............................................................................................................................20
(5) (a)PensionpayabletoSPOUSE......................................................................................................20
(b) Actuariallyreducedpension..........................................................................................................21
(6) Disability.......................................................................................................................................21
(7) (a)Deathbenefit...........................................................................................................................21
(b) (i)Deathbenefit-paymenttoDEPENDANT/S................................................................................22
(ii) Deathbenefit-paymenttonominee/s..........................................................................................22
(iii) Deathbenefit-paymenttoDEPENDANT/Sandnominee/s.......................................................23
(iv) Deathbenefit-paymentinabsenceofDEPENDANTandnominee............................................23
(v) Deathbenefit-paymenttoTrustee...............................................................................................23
(vi) Deathbenefit-transfertotheMotorIndustryBeneficiaryFund...............................................23
(8) (a)Continuationofmembership....................................................................................................24
(b) Retrenchmentbenefit....................................................................................................................24
(i) Retrenchment-within15yearsfrompensionableage..................................................................24
(ii) Retrenchment-5yearsofCONTRIBUTORYSERVICE......................................................................24
(c) RefundofEMPLOYEEcontributions...............................................................................................24
(d) (i)Deferredpension.......................................................................................................................25
(ii) Deferredpension-retirementwithin15yearsofpensionableage................................................26
(iii) Deferredpension-death..........................................................................................................26
(iv) Applicationfordeferredpension...............................................................................................26
(v) Deferredpension-re-admissionofMEMBER.................................................................................26
(e) (i)TransfertoanotherFund......................................................................................................26
(f) MinimumBenefits.........................................................................................................................27
(9) UnclaimedBenefits........................................................................................................................27
(10) ProvisionsapplicabletoaDEFERREDRETIREE...........................................................................27
RULE8-GENERAL...................................................................................................................29
(1) Guaranteesforloans.....................................................................................................................29
(2) DismissalofMEMBER-noclaim....................................................................................................29
(3) Claim-onlyintermsofRULES.......................................................................................................29
(4) RightsofanypersonundertheseRULES........................................................................................29
(b) Suspensionofrights.......................................................................................................................29
(c) Suspendedrights-paymentofbenefits.........................................................................................30
(d) Paymentofbenefitpriortosuspensionofrights...........................................................................30
(e) Determiningdateofsuspensionofrights.......................................................................................30
(f) Rights-notanassetindeceasedestate.........................................................................................31
(5) (a)DiscretionofBOARD-paymentofbenefit................................................................................31
(6) (a)Lienonbenefitpayable............................................................................................................31
(b) MEMBER'SindebtednesstoFund-deductionfrombenefitpayable..............................................31
(c) Restrictionofdeduction................................................................................................................33
(7) DecisionofBOARDisconclusive....................................................................................................33
(8) JudgementofBOARD.....................................................................................................................33
(9) BOARD-discretionarypower........................................................................................................33
(10) (a)AmendmentofRULES-procedure.......................................................................................33
(11) BOARD-incorporationandregistrationofFund........................................................................34
(12) Windingup................................................................................................................................34
(13) Contingency..............................................................................................................................36
(14) Borrowings................................................................................................................................36
(15) Re-insuranceofbenefits............................................................................................................36
(16) BOARD'Sdiscretion...................................................................................................................36
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RULE 1 - NAME AND OBJECT OF THE FUND
(1) There shall be established as from the 28th January 1954 the COPARTES PENSION FUND
(hereafter referred to as "the Fund") and the object of the Fund shall be to provide the benefits
referred to in Rule 7 hereof.
(2) The registered office of the Fund shall be situated in 275 Kent Avenue, Ferndale, Randburg.
(3) The Fund shall, in its own name, be capable of suing and being sued and of purchasing or
otherwise acquiring, holding and alienating property, movable or immovable, or any interest
therein.
(4) For all purposes, including any legal proceedings for or against the Fund, the Fund shall be
represented by the BOARD.
(5) These RULES include all amendments up to and including 1 January 2006. If the registration of
these RULES in terms of the ACT is affected later than 1 January 2006, the RULES shall
nevertheless take effect from 1 January 2006.
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RULE 2 - DEFINITIONS
In the interpretation of these RULES, words importing the masculine gender shall include the feminine
and vice versa, and unless inconsistent with the context, the following words shall have the following
meanings:-
"ACT" shall mean the Pension Funds ACT, 1956 (ACT No. 24 of 1956), as amended, and the
regulations framed thereunder.
“ACTUARIAL RESERVE” shall mean for each MEMBER the value in the FUND, as determined by
THE ACTUARY, of the MEMBER'S pension benefits at the time the benefit is due, using the same
actuarial assumptions as were used in the latest valuation of the FUND in terms of Rule 3 (17) (a) or, if
no valuation has been carried out, in the latest actuarial investigation of the FUND'S financial
condition.
" ACTUARY" shall mean such actuaries or actuary as defined in the ACT whom the BOARD shall
from time to time appoint to advise it.
"AUDITOR" shall mean an AUDITOR registered under the Public Accountants' and AUDITORS' Act,
1951.
"BOARD" shall mean the BOARD of Management which is responsible for the operation of the Fund in
terms of these RULES.
"CONTRIBUTORY SERVICE" shall mean continuous employment of a MEMBER by any
EMPLOYER/S during the period in which the MEMBER and the EMPLOYER/S contribute to the Fund
in terms of these RULES.
“DEFERRED RETIREE” shall mean a MEMBER who has retired from SERVICE in terms of Rule 7(1)
or Rule 7(4) and elected that his retirement benefit shall be retained in the FUND until RETIREMENT
FROM THE FUND.
“RETIREMENT FROM THE FUND” shall mean in relation to a MEMBER retiring from employment in
terms of Rule 7(1) or Rule 7(4) :
(a) prior to 1 March 2015, the date on which a benefit became due and payable from the FUND to
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such MEMBER; or
(b) on or after 1 March 2015, the date on which such MEMBER elects to receive payment of his
benefit in terms of paragraph 4 of the Second Schedule to the Income Tax Act, 1962 or, if
later, the late on which the FUND receives notification of such election.
"DEPENDANT" shall mean -
(a) a person in respect of whom the MEMBER is legally liable for the maintenance;
(b) a person in respect of whom the MEMBER is not legally liable for maintenance, if such person -
(i) was, in the opinion of the person managing the business of the fund, upon the death of
the MEMBER in fact dependent on the MEMBER for maintenance;
(ii) is the SPOUSE of the MEMBER, including a party to a customary union according to
Black law and custom, or to a union recognized as a marriage under the tenets of any
Asiatic religion;
(iii) is a child of the MEMBER, including a posthumous child, an adopted child and an
illegitimate child;
(c) a person in respect of whom the MEMBER would have become legally liable for maintenance,
had the MEMBER not died.
"EMPLOYEE" shall mean every person in the full-time employment of any EMPLOYER/S in such
designated class/es as shall be defined by such EMPLOYER/S in his/their application to be associated
with the Fund.
"EMPLOYER" shall mean any ORGANISATION admitted to participation in the Fund by the BOARD.
"FIXED DATE" in relation to an EMPLOYER shall mean the date on which such an EMPLOYER
becomes associated with the Fund.
"MEMBER" shall mean any EMPLOYEE who has been admitted as such to the Fund and who is a
current contributor in terms of these RULES.
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“MINIMUM INDIVIDUAL RESERVE” shall mean the MINIMUM INDIVIDUAL RESERVE for a
MEMBER as defined in the ACT and as determined by the ACTUARY using methods and
assumptions prescribed by the REGISTRAR by notice in the Government Gazette.
"ORGANISATION" shall mean the Motor Industry Bargaining Council and the Parties thereto, Motor
Industry Fund Administrators (Pty) Limited and the Manufacturing Engineering and Related Services
Seta.
"PAST SERVICE SCHEME" shall mean a scheme to provide past service benefits prepared in terms
of Rule 4.
"PENSION AGE" shall mean 65 years; however MEMBERS may elect to continue to 70 years.
"PENSIONER" shall mean a MEMBER who has retired under sub- clause (1) or (4) of Rule 7 and who
is in receipt of a pension.
"REGISTRAR" shall mean the REGISTRAR of Pension Funds referred to in the ACT.
“REGISTERED INSURER” shall mean an insurer registered in terms of the Longterm Insurance Act,
1998.
"REMUNERATION" shall mean for the purposes of the contributions in terms of Rule 6 and the
calculation of the benefits referred to in Rule 7 (7) (a) (ii), Rule 7 (8) (b) (ii) and Rule 7.8 (c), the
amount to the nearest Rand paid by an EMPLOYER to a MEMBER from time to time as salary or
wages and cost of living allowance but shall not include overtime payment, bonuses or any other
emoluments and/or travelling, housing or any other allowances; provided that for the purposes of the
calculation of the benefits in terms of Rule 7 (1) and Rule 7 (7) (a) (ii), REMUNERATION shall be
calculated on the assumption that the MEMBERS’ salaries are increased at two percentage points
below the actual increase granted by the EMPLOYER or such rate at variance with the actual rate of
increase as the TRUSTEES may determine from time to time.
Where contributions are paid on a lesser amount, then the benefits will be calculated on such lesser
amount.
"REVENUE AUTHORITIES" shall mean the South African Revenue Service.
"RULES" shall mean the RULES of the Fund for the time being. Where there is a divergence between
the English, and the Afrikaans text, the English text will prevail.
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"SPOUSE" shall mean a person who, in respect of a deceased MEMBER or PENSIONER
(a) renders proof to the satisfaction of the TRUSTEES that, on the date of such MEMBER’S or
PENSIONER'S death such person was married to the deceased by way of a civil or religious
ceremony or a customary union according to indigenous law and custom or a union
recognised as a marriage under the tenets of any Asiatic religion;
or
(b) renders proof to the satisfaction of the TRUSTEES that, on the date of such MEMBER’S or
PENSIONER'S death, such person was in an intimate relationship, of a heterosexual or
homosexual nature, with the deceased MEMBER or PENSIONER of at least one year in
duration during which time they undertook reciprocal duties of support towards each other and
shared a common household as if being married.
"SURPLUS APPORTIONMENT DATE" shall mean 31 March 2004.
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RULE 3 – ADMINISTRATION
(1) Membership of BOARD
The membership of the BOARD shall consist of at least four persons of whom one-half shall
be elected by MEMBERS. The MEMBERS of the Fund within each ORGANISATION, which
participates in the Fund, shall elect one BOARD MEMBER through nomination and election
by means of an objection approach. In addition each such ORGANISATION shall appoint one
BOARD MEMBER. The members of the BOARD shall elect a Chairman from among their
number.
(2) Term of Office
The term of office of each MEMBER of the BOARD shall be for a maximum of five years, but
at the end of the five year period any such MEMBER shall be eligible for re-election if an
elected MEMBER, or re-appointment if an appointed MEMBER, subject to the conditions of
eligibility as further set out in these RULES.
(3) Removal of BOARD members A MEMBER of the BOARD shall cease to hold office if, being an appointed MEMBER, the
ORGANISATION which appointed him so decides, or if, being an elected MEMBER, a
majority of the MEMBERS of the Fund within the applicable ORGANISATION petition to have
him removed.
A MEMBER of the BOARD may also resign at any time on giving written notice to the other
members of the BOARD, and the ORGANISATION which appointed him in the case of an
appointed MEMBER, or the MEMBERS who elected him in the case of an elected MEMBER.
(4) Eligibility
No person in any of the following categories shall be eligible for appointment or election as a
MEMBER of the BOARD, and if a MEMBER of the BOARD at any time falls in any such
category he shall cease to hold office:
a) A minor or any person who is insane or otherwise incapable of acting;
b) any person who is disqualified from being a director in terms of an order under the
Companies Act, 1973;
c) an unrehabilitated insolvent;
d) any person removed from an office of trust on account of misconduct;
e) any person who has been convicted and sentenced either to imprisonment without
the option of a fine or to a fine exceeding R100 for one of the following : theft, fraud,
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forgery or uttering a forged document, perjury an offence under the Corruption Act,
1992, any offence involving dishonesty or any offence in connection with the
promotion, formation or management of a BOARD.
(5) Filling of Vacancies
In the event that a vacancy occurs among the members of the BOARD as a result of the
operation of Clauses (3) and (4) above then another MEMBER shall be appointed or elected
according to the relevant provisions of Clause (1), depending on whether the vacancy occurs
among the appointed or elected members of the BOARD.
(6) REMUNERATION
Members of the BOARD shall not be entitled to any REMUNERATION in respect of their
services as members of the BOARD.
(7) Meetings of the BOARD
Meetings of the BOARD shall take place as and when required by the members of the
BOARD, but not less frequently than twice a year. At least 15 days’ notice shall be given for
ordinary meetings of the BOARD.
(8) Quorum
The quorum at any meeting of the BOARD shall be four members of the BOARD of whom at
least half shall be members who have been elected by the MEMBERS of the Fund. No
resolution by the BOARD at such meeting shall be effective unless unanimously agreed upon
by all members present at the meeting. In the event of there being a deadlock in respect of
any resolution then the matter shall be referred to arbitration.
(9) Resolution in writing
A Resolution in writing signed by all the members of the BOARD who may at the time be
present in the town where the registered office of the Fund is situated, being not less than are
sufficient to form a quorum, shall be as valid and effectual as if it had been passed at a
meeting of the BOARD duly called and constituted.
(10) Control of BOARD
The control of the assets, management and administration of the Fund shall be vested in the
BOARD, provided that the BOARD shall have the power to appoint external managers to
manage any of the assets of the Fund on its behalf on such terms and conditions not
inconsistent with the RULES, as the BOARD may determine in its discretion, and whose
appointment the BOARD may from time to time revoke or renew in its discretion.
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(11) BOARD as Trustee
The BOARD shall act as Trustee for the Fund.
(12) No security required
The BOARD shall not be required to furnish any security in respect of its administration and
any Master of the Supreme Court having jurisdiction is directed to dispense with such security
whether under the Trust Moneys Protection Act of 1934 or under any other law in force.
(13) Management and administration
The BOARD shall manage and administer the Fund in accordance with these RULES, and
may make by-laws for its administration not inconsistent therewith.
(14) (a) Indemnification
The Fund shall indemnify the BOARD and each of the members of the BOARD from
and hold them harmless against all claims, costs, damages and expenses which are
claimed from or incurred by the BOARD and/or any such MEMBER relating directly or
indirectly to the administration and/or management of the Funds, provided that such
claims, costs, damages and/or expenses do not arise from any gross negligence of or
fraud on the part of the members against whom such claim is made.
(b) Insurance
The BOARD shall insure the Fund against loss resulting from fraud and/or dishonesty
in respect of the receipt and control of moneys of the Fund, for such amounts as the
BOARD, in its discretion, may from time to time determine.
(15) Annual audited accounts
The BOARD shall cause full and true accounts of the Fund to be kept, and such accounts
shall be made up annually on the 31st March and shall be audited by the AUDITOR or
AUDITORS of the Fund appointed by the BOARD. A copy of the annual accounts and
balance-sheet shall be available for inspection by EMPLOYERS and MEMBERS.
Any appointment in terms of this sub-clause may be terminated by either party giving to the
other party three calendar months’ notice to that effect.
(16) (a) Banking and/or other accounts
All moneys received on account of the Fund shall be paid into a banking account or
other account in the name of the Fund with such Bank and/or other institution as the
BOARD may determine, and all operations on such accounts shall be by means of
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cheques or other written instruments, signed by such person/s as are duly authorised
thereto by the BOARD.
(b) Investments and registration of assets
Moneys of the Fund, not immediately required, may from time to time be lent,
invested, placed on deposit or otherwise dealt with by the BOARD alone upon such
security, and in such a manner, as it, in its discretion, may determine.
The BOARD may realise, vary, re-invest, or otherwise deal with such moneys,
securities and investments as it may from time to time, in its discretion, decide.
All title deeds, securities and other assets shall be registered in the name of the Fund,
or in the name of such nominee companies, as the BOARD may appoint.
(17) (a) Actuarial investigation
The BOARD shall cause the financial position of the Fund to be investigated and
reported upon by the ACTUARY at intervals not exceeding three years. The
ACTUARY shall embody the results of each such actuarial investigation in a written
report to the BOARD, in which he shall make such recommendations as he may
deem fit, relating, inter alia, to the steps he considers desirable to enable the Fund to
continue the benefits provided under these RULES, and to the disposal of any surplus
which may be available.
(b) Increase of contributions / benefits / bonus The BOARD, after considering each actuarial report, may in consultation with the
EMPLOYERS, increase or decrease the contributions and/or benefits under the
RULES and/or may increase benefits by way of a bonus or otherwise.
(c) Contingency reserves
Taking into account any guidelines issued by the REGISTRAR, the ACTUARY shall
make recommendations for such contingency reserves, as may be approved by the
BOARD, to be calculated at the date of each valuation, and provided for in valuations,
and at other times as and when required, in order to provide for explicit contingencies.
Such contingencies reserves will be :
(i) A solvency reserve, of such amount as may be required on the advice of the
ACTUARY to stabilise the funding level to a level considered prudent by the
ACTUARY, provided that the balance maintained in the solvency reserve
shall be limited to what is affordable, having regard to the financial position of
the Fund; and
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(ii) a contribution stabilisation reserve, as the Members and the EMPLOYER pay
fixed contribution rates in terms of the RULES, and therefore a provision will
be made in a contribution stabilisation reserve to fund the shortfall between
expected future service benefits and the contribution rates payable by
Members and the EMPLOYER. The purpose of the contribution reserve is to
fund the shortfall between expected future service benefits and the
contribution rates payable by Members and the EMPLOYER. The opening
balance in the contribution reserve shall be set as at 31 March 2007 and at
each actuarial valuation :
(aa) subject to the approval of the BOARD, the contribution reserve shall be
credited with the difference between :
(A) the present value of future service benefits less the present
value of a 25% future contribution less such expenses as
the BOARD deems reasonable; and
(B) the current balance in the account after any debits to meet
past costs in excess of 25% of pensionable payroll;
(bb) the contribution reserve shall be debited with the difference between :
(A) the cost of benefits that accrued since the previous
valuation; and
(B) the value of the EMPLOYER and MEMBER contributions
after deduction of expenses and including investment
returns earned since the previous valuation.
If the BOARD considers that the contribution reserve account is no longer
required, or on liquidation of the Fund, any balance remaining in the account
shall be applied to meet the rights and reasonable expectations of the
Members.
The BOARD shall determine from time to time whether, and to what extent,
Members leaving the Fund shall share in such reserves.
(iii) a data reserve, of such amount as may be required on the advice of the
ACTUARY to protect the financial position of the Fund. The data reserve
shall be set as at 31 March 2007 and at each actuarial valuation :
be credited with the investment return earned by the assets within this
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account, including any investment income (received and accrued) less an
allowance, if applicable for part or all of any expenses (paid and accrued),
together with capital appreciation, realised or unrealised;
be debited with any liabilities or benefits becoming payable due to changes in
the data of Members.
The BOARD may, on the advice of the ACTUARY, transfer such amounts to
and from the data reserve as may be required from time to time.
(d) Pension increases
From time to time, the BOARD shall review the level of pensions being paid from the
Fund and may direct that pensions be increased. Any increase in pensions shall be
paid in terms of the pension increase policy adopted by the BOARD in consultation
with the ACTUARY, and shall be payable from the date set out in the pension
increase policy and subject to the minimum pension increase in terms of the ACT.
(18) Incidental expenses
The expenses in connection with, or incidental to, the management of the Fund, including the
cost of audit and of actuarial investigations in terms of sub-RULES (15) and (17)(a) hereof,
shall be borne by the Fund.
(19) Contracts and other documents Contracts and other documents binding on the Fund shall be executed in such a manner as
the BOARD may determine.
(20) Safekeeping
The Fund's securities, books, documents and other effects shall be kept at the registered
office of the Fund or at such other place as the BOARD may determine.
(21) Delegation of Functions of the BOARD In accordance with the provisions of the ACT, the BOARD may in writing, subject to the
provisions of (a) to (e) below, delegate any function to a person or to a group of persons or a
sub-committee of the BOARD nominated by them. In such case, the following shall apply :
(a) any terms and conditions applicable to the performance of the function that has been
delegated shall be specified in writing by the BOARD;
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(b) acting in terms of their instruction from the BOARD, the person or group of persons or
sub-committee to whom such function has been delegated must perform such
function in accordance with the provisions of the RULES, the ACT and other
applicable legislation;
(c) the person or group of persons or sub-committee to whom such function has been
delegated shall have the power to take decisions in connection with the performance
of such function and in such case, subject to (e) below, any such decision shall be
regarded as a decision of the Fund, unless the BOARD stipulates that it must be
referred to them for ratification;
(d) the full BOARD shall retain full responsibility for the delegation of any function
performed by any person, group of persons or sub-committee;
(e) the BOARD may revoke the delegation at any time and any decision of such person,
group of persons or sub-committee may be set aside or amended by the BOARD in
its sole discretion.
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RULE 4 – ASSOCIATION WITH THE FUND (1) (a) Application for participation by EMPLOYER
Any ORGANISATION which desires its EMPLOYEES to participate in the benefits
secured in this Fund shall make a written application to the BOARD on its form of
application to be associated with the Fund. In such an application the
ORGANISATION shall, inter alia, define the class or classes of EMPLOYEES
concerned, and shall agree, if admitted to association with the Fund, to be bound by
the terms of these RULES.
(b) If the BOARD approves of the application it shall admit the ORGANISATION to
association with the Fund and shall determine the FIXED DATE for that
ORGANISATION.
(2) (a) Admission conditions
If any EMPLOYER, on admission to association with the Fund, desires to provide full
or partial benefits from the Fund for his EMPLOYEES in respect of service prior to his
FIXED DATE, he shall accompany his application for admission by a PAST SERVICE
SCHEME, setting out the benefits he desires to be provided and the assets and
contributions or series of contributions he proposes to hand over to the Fund in
payment therefor. Such a PAST SERVICE SCHEME may include provision for
handing over to the Fund the assets (including insurance policies) of any existing
pension, provident or insurance scheme for the benefit of his existing EMPLOYEES
who decided to apply for membership of the Fund.
(b) PAST SERVICE SCHEME
Such PAST SERVICE SCHEME shall be prepared by the ACTUARY and shall be
accompanied by a certificate from him that the scheme is actuarially sound.
(c) Approval of application
The BOARD'S approval of an application for association with the Fund shall include
approval of such a PAST SERVICE SCHEME. The benefits provided under any
PAST SERVICE SCHEME shall be additional to those provided under Rule 7.
(3) Changing classes of EMPLOYEES
An EMPLOYER may, subject to the BOARD'S approval, change or otherwise vary the class
or classes of EMPLOYEES referred to in sub-clause (1)(a) hereof, provided that no such
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change shall operate to deprive any MEMBER of his membership.
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RULE 5 – MEMBERSHIP
(1) (a) Application for membership at FIXED DATE Every EMPLOYEE in the service of an EMPLOYER as at the latter's FIXED DATE
who agrees to participate in the EMPLOYER'S PAST SERVICE SCHEME (if any)
may make an application to become a MEMBER of the Fund as at such a FIXED
DATE. Any such EMPLOYEE who does not make an application within one month of
being entitled to apply shall not thereafter be admitted to membership of the Fund.
(b) Application for membership after FIXED DATE Subject to sub-clause (5) hereof, every EMPLOYEE appointed after such FIXED
DATE shall make an application to become a MEMBER of the Fund on the first day of
the month following the date of his appointment as an EMPLOYEE.
(c) (i) Evidence of health at FIXED DATE
Provided that at least two-thirds of EMPLOYEES in the service of an
EMPLOYER at his FIXED DATE make application for membership, such
EMPLOYEES shall be admitted to the Fund without evidence of health.
(ii) Medical evidence of health
Subject to paragraph (c)(i) hereof, all EMPLOYEES making an application for
membership shall be required to produce medical evidence of health
satisfactory to the BOARD.
Such EMPLOYEES as are in good health, to the satisfaction of the BOARD,
shall be admitted to membership of the Fund. Such EMPLOYEES as are
not in good health may be admitted to membership of the Fund, but subject
to such a limitation of the death benefit as the BOARD may determine having
regard to the advice of the ACTUARY.
(iii) Concealed information regarding state of health
If any MEMBER has in his application form or in the information given to a
Medical Examiner withheld or concealed any information regarding his state
of health, or has given incorrect information, then he and his DEPENDANT/S
shall forfeit all rights to benefits under the Fund and he and his
DEPENDANT/S shall be paid only such benefits, if any, as the BOARD, in its
discretion, may decide.
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(2) Membership and cessation of membership
Every MEMBER of the Fund shall continue to be a MEMBER throughout the period of his
employment as an EMPLOYEE until such time as he attains PENSION AGE or retires under
Rule 7(4). On leaving, or retiring from, or being dismissed from such employment, or dying, he
shall ipso facto cease to be a MEMBER, except as provided for in Rule 7(8)(a).
(3) Legal effect of provisions of RULES All EMPLOYEES, on becoming MEMBERS, shall agree for themselves and on behalf of their
DEPENDANT/S, heirs and legal representatives or assigns, to be legally bound by the
provisions of these RULES and any amendments or additions thereto.
(4) Correct information to BOARD
Each MEMBER shall supply such evidence of age and also such other information as the
BOARD may require from time to time. If at any time it is proved to the satisfaction of the
BOARD that the age of the MEMBER has been incorrectly given, then the BOARD shall have
the power to make such adjustments or alterations to any benefits as, in its absolute
discretion, it deems fit.
(5) Probationary employment
Any EMPLOYER may fix a period of probationary employment before a person in his service
shall be entitled to become a MEMBER of the Fund. During such a probationary period a
person may, by agreement with his EMPLOYER, make contributions in accordance with Rule
6 hereof as if he was a MEMBER, and such contributions shall be held by the EMPLOYER
pending completion of the said probationary period when, if the person becomes a MEMBER
and the contributions concerned are paid to the Fund together with the corresponding
contributions by the EMPLOYER in terms of Rule 6 hereof, his membership shall be deemed
to have commenced from the month in which he began making contributions.
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RULE 6 – CONTRIBUTIONS
(1) EMPLOYEE'S monthly contribution Each MEMBER shall contribute monthly an amount equal to 10 per cent of his
REMUNERATION during that month. In the case of weekly paid MEMBERS, the 10 percent
monthly contribution shall be based on 4 and 1/3rd times their weekly REMUNERATION.
This contribution shall be used in the first instance to pay the cost of the associated death
benefit scheme referred to in Rule 7(7)(a)(i) and the balance will be applied to meet the costs
of the benefits provided by the Fund.
(2) Contributions during period of leave
When a MEMBER is on leave he shall continue to contribute on the basis of his
REMUNERATION at the time of going on leave, and subject to such increase of
REMUNERATION as he may receive whilst on leave. If he is on leave without pay, he shall
pay his contributions to his EMPLOYER monthly, and in the event of default, the contributions
concerned shall be deducted by his EMPLOYER from the first payment of REMUNERATION
or otherwise subsequently made to him.
(3) Contribution deduction from REMUNERATION
MEMBERS' contributions shall be deducted monthly from their REMUNERATION by their
EMPLOYER and this provision shall be regarded as constituting consent on the part of
MEMBERS to such deduction.
(4) EMPLOYER'S monthly contribution Each EMPLOYER shall contribute to the Fund monthly an amount equal to 15% of the
MEMBER'S REMUNERATION during that month. In addition, the EMPLOYER shall
contribute to the Fund such amount/s as have been fixed under a PAST SERVICE SCHEME.
(5) Remittance of contributions to Fund
The contributions of EMPLOYERS and MEMBERS as referred to herein shall be paid by the
EMPLOYER to the Fund on or before the seventh day of the month following that to which
they relate.
If such contributions are not paid to the Fund by the seventh day of each month, then the
benefits in respect of the MEMBERS concerned shall be suspended and the BOARD shall
have the power to take such action, and to impose such penalties as it may determine in its
discretion.
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(6) Adjustment in salary
If a MEMBER receives an increase or decrease in REMUNERATION, the contributions being
made by such a MEMBER and by his EMPLOYER under this Rule shall be correspondingly
increased or decreased forthwith.
(7) Additional contributions
In addition to the contributions prescribed in sub-rule (1), the BOARD may, in its discretion,
accept moneys in respect of any MEMBER for the purpose of purchasing increased benefits
for such a MEMBER. The BOARD shall determine the benefit purchased by any sum so
received having regard to the advice of the ACTUARY.
-19-
RULE 7 – BENEFITS
(1) Retirement benefit
Except as provided in sub-rule (4) hereof, every MEMBER shall retire from his employment on
the last day of the month in which he attains PENSION AGE and on RETIREMENT FROM
THE FUND shall be entitled to :
(a) for each year of CONTRIBUTORY SERVICE up to 31 May 2013, two and three-
quarters per cent (2,75%); and
(b) for each year of CONTRIBUTORY SERVICE from 1 June 2013, two per cent (2,0%);
of his highest average annual REMUNERATION during any three years in the last ten years
of CONTRIBUTORY SERVICE (or in his total period of CONTRIBUTORY SERVICE, if this is
less than three years), and adjusted, if applicable, in terms of Rule 7(1)(b).
For the purposes of this Rule fractions of a year's CONTRIBUTORY SERVICE, to the nearest
completed month, shall be taken into account pro-rata.
(2) Retirement commutation
The BOARD shall, at the MEMBER'S request, on his RETIREMENT FROM THE FUND
commute for a cash payment to the MEMBER not more than one-third of any pension payable
in terms of sub-rules 91) or (4) hereof; provided that if the pension payable does not exceed
the amount set out in the ACT, the whole pension may be commuted for a cash payment on
RETIREMENT FROM THE FUND at the BOARD’S discretion. The amount of any cash
payment effected in terms hereof shall be that computed by THE ACTUARY.
(3) Pension payments
The first pension payment shall be made on the last day of the month following that in which
the MEMBER’S RETIREMENT FROM THE FUND takes place and shall be paid monthly
thereafter on the last day of each month during the lifetime of the PENSIONER; the last
pension payment shall be made on the last day of the month in which he dies; provided
always that the pension shall be payable for ten years irrespective of his survival. In the event
of the PENSIONER’S death occurring within ten years of his RETIREMENT FROM THE
FUND, his DEPENDANT’S (as determined solely in the discretion of the BOARD) shall be
paid the pension which such a PENSIONER, had he not died, would have received during the
unexpired portion of the period of ten years aforesaid.
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(4) Early retirement
Notwithstanding the provisions of sub-rule (1) hereof, a MEMBER who has attained an age
within fifteen years of PENSION AGE may elect to retire from his employment, in which
event his contributions shall cease and on RETIREMENT FROM THE FUND he shall be
granted a pension equal to the following percentage of the pension calculated in terms of sub-
rule (1) hereof in respect of his CONTRIBUTORY SERVICE up to the actual date of
retirement from employment.
Number of years prior to PENSION AGE Age Percentage
%
15 50 70
14 51 73
13 52 76
12 53 79
11 54 82
10 55 85
9 56 88
8 57 91
7 58 94
6 59 97
5 60 100
4 61 100
3 62 100
2 63 100
1 64 100
0 65 100
Where the number of years prior to PENSION AGE is fractional, allowance shall be made, by
interpolation, for completed months of the period.
Where a MEMBER elects to retire from employment after the age of 65 years he shall receive
100% of his benefits.
The benefit payable in terms of this Rule shall, if applicable, be adjusted in terms of Rule 7
(10) (b).
(5) (a) Pension payable to SPOUSE
If a PENSIONER who retired in terms of sub-clause (1) or (4) hereof dies leaving a
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SPOUSE, the SPOUSE shall be entitled to receive a pension payable until such
SPOUSE'S death equal to one- half of the pension which the PENSIONER was
receiving at the time of his death, if no part of such a pension was commuted in terms
of sub-clause (2) hereof; or, if part of such a pension was so commuted, equal to
one-half of the pension which the PENSIONER would have been receiving at the
time of his death had he not commuted part of the pension in terms of sub-clause (2)
hereof; provided that, if a SPOUSE is more than 10 years younger than her/his
deceased husband/wife, any pension payable to such SPOUSE in terms of this Rule
shall be reduced by such an amount as the ACTUARY certifies to be appropriate
having regard to the age of the SPOUSE and other circumstances.
The SPOUSE'S pension shall commence at the end of the month following that in
which the PENSIONER died, or at the end of the month following the tenth yearly
anniversary of the PENSIONER’S RETIREMENT FROM THE FUND, whichever is
the later.
(b) Actuarially reduced pension
Within 30 days of his RETIREMENT FROM THE FUND under either sub-clause (1) or
(4) hereof, a MEMBER may elect to receive an actuarially reduced pension in order
that on his death-
(i) a sum of money as determined by the ACTUARY shall be payable by the
Fund to such person/s referred to in sub-rule 7(b) hereof as the BOARD may
determine; and/or
(ii) a pension larger than that provided for in sub-rule 5(a) hereof shall be paid to
his surviving SPOUSE.
(6) Disability
If a MEMBER becomes entitled to disability benefits in terms of any permanent health
insurance scheme operated outside of the Fund by his EMPLOYER, he shall remain a
MEMBER of the Fund for as long as such disability benefits are paid to him. While such
disability benefits are being paid, contributions shall continue to be paid in terms of Rule 6(1)
and 6(4), the REMUNERATION during such a period being regarded as being the amount of
the disability income benefit.
(7) (a) Death benefit
In the event of the death of a MEMBER there shall be payable -
(i) A death benefit equal to five times the annual REMUNERATION of the
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deceased MEMBER at the time of death, which shall be provided by an
associated scheme underwritten by a REGISTERED INSURER;
(ii) the deceased MEMBER'S total contributions in terms of Rule 6(1), plus
additional contributions paid by him in terms of Rule 6(7), plus one
twenty-fifth of such a total for each completed 12 month period that the
MEMBER has contributed to the Fund;
provided that :
(aa) the total benefit payable in terms of Rule 7(7)(a)(i) and Rule 7(7)(a)(ii) shall
be subject to a minimum of the MEMBER’S MINIMUM INDIVIDUAL
RESERVE;
(bb) the REGISTERED INSURER with whom the benefit referred to in Rule
7(7)(a)(i) has been insured may require a MEMBER to submit medical
evidence for underwriting purposes. In such case, this requirement shall be
communicated to the MEMBER by the Principal Officer of the Fund and if the
MEMBER fails to comply with such requirement within 30 days of being
informed thereof, the benefit referred to in Rule 7(7)(a)(i) shall be limited to
the amount actually paid by the REGISTERED INSURER.
(b) (i) Death benefit - payment to DEPENDANT/S If the Fund, within twelve months of the death of a MEMBER, becomes
aware of or traces any DEPENDANT/S of the MEMBER, then, subject to
the provisions of sub-clause (iii) below, the benefit in terms of paragraph (a)
hereof or in terms of Rule 7(8)(d)(iii) shall be paid to such DEPENDANT/S
or, in such proportions as may be deemed equitable by the BOARD.
(ii) Death benefit - payment to nominee/s
If the Fund does not become aware of or cannot trace any DEPENDANT
within twelve months of the death of a MEMBER and the MEMBER has
designated in writing to the Fund any nominee/s who is/are not
DEPENDANT/S of the MEMBER to receive the benefit in terms of paragraph
(a) hereof or in terms of Rule 7(8)(d)(iii), the benefit shall be paid to such
nominee/s; provided that where the aggregate amount of the debts in the
estate of the MEMBER exceeds the aggregate amount of the assets in the
estate, so much of the benefit as is equal to the difference between the two
aggregates shall be paid into the estate and the balance of such a benefit
-23-
shall be paid to the nominee/s.
(iii) Death benefit - payment to DEPENDANT/S and nominee/s
If the Fund, within twelve months of the death of a MEMBER, becomes
aware of or traces any DEPENDANT/S of the MEMBER, and the MEMBER
has designated in writing to the Fund a nominee who is not a DEPENDANT
of the MEMBER to receive the benefit in terms of paragraph (a) above or in
terms of Rule 7(8)(d)(iii) -
(a) so much of the benefit as is, in the opinion of the BOARD, required for
the maintenance of the DEPENDANT/S shall be paid to such
DEPENDANT/S; and
(b) the balance of the benefit shall, subject to the proviso to sub-clause (ii),
be paid to the nominee.
(iv) Death benefit - payment in absence of DEPENDANT and nominee
If the Fund does not become aware of or cannot trace any DEPENDANT
within twelve months of the death of a MEMBER, and if the MEMBER has
not designated a nominee, the benefit shall be paid into the estate of the
MEMBER or, if no inventory in respect of the MEMBER has been received by
the Master of the Supreme Court in terms of the Estates Act, 1965 (Act. No.
66 of 1965), the benefit shall be paid into the Guardian's Fund.
(v) Death benefit - payment to Trustee
For the purpose of this Rule 7(7)(b), a payment by the Fund to a
DEPENDANT/S and/or nominee/s shall be deemed to include a payment by
the Fund to a trustee contemplated in the Trust Moneys Protection Act, 1934
(Act No. 34 of 1934), for the benefit of a DEPENDANT and/or nominee
contemplated in this Rule.
(vi) Death benefit - transfer to the Motor Industry Beneficiary Fund
It is specifically provided that the BOARD may agree to transfer to the Motor
Industry Beneficiary Fund the capital value of the balance of any death
benefit which, in accordance with the provisions of Section 37C of the ACT,
is being paid to a beneficiary in instalments.
On transfer of such amount to the Motor Industry Beneficiary Fund, the Fund
shall have no further liability with regard to the payment of such benefit, such
-24-
liability having been transferred to the Motor Industry Beneficiary Fund.
(8) (a) Continuation of membership
If a MEMBER leaves the service of one EMPLOYER to enter immediately the service
of another EMPLOYER as an EMPLOYEE, his membership of the Fund shall
continue without break.
(b) Retrenchment benefit If a MEMBER who has not attained the PENSION AGE, is retired from the service by
his EMPLOYER owing to a general scheme for the reduction or re- organisation of
staff, or to retrenchment generally, or the abolition of his office or post, as determined
by the BOARD in consultation with the EMPLOYER, and he is not required to receive
a benefit in terms of Rule 7(4), he shall be entitled to a benefit equal to the greater of
(i) his ACTUARIAL RESERVE, as determined by the ACTUARY;
and
(ii) the total of
(a) (i) twice his total contributions in terms of Rule 6(1);
and
(ii) any additional contributions paid by him in terms of Rule 6(7);
and
(iii) one twenty-fifth of the sum of (a)( i) and (a) (ii) for each completed 12
month period that he has contributed to the Fund.
The benefit shall be paid as soon as administratively practicable provided that a
MEMBER who may be so retired :-
(i) Retrenchment - within 15 years from pensionable age
after he has attained an age within fifteen years from his PENSION AGE
shall, at his option, be permitted instead to retire in terms of Rule 7(4); or
(ii) Retrenchment - 5 years of CONTRIBUTORY SERVICE after he has completed 5 years of CONTRIBUTORY SERVICE shall, at his
option, be permitted instead to elect a deferred pension in terms of Rule
7(8)(d).
(c) Refund of EMPLOYEE contributions
If a MEMBER leaves the employment of an EMPLOYER in circumstances not
otherwise dealt with in these RULES, and in respect of which no benefit is
otherwise provided for in these RULES, he shall be granted a benefit equal to the
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total of :
(a) (i) his total contributions in terms of Rule 6( i );
and
(ii) any additional contributions paid by him in terms of Rule 6(7);
and
(iii) one twenty-fifth of the sum of (a) ( i) and (a)(ii) for each completed 12
month period that he has contributed to the Fund
plus
(b) the following percentage of the amount which remains of the EMPLOYER'S
contributions attributed by the ACTUARY to him after provision, as
determined by the ACTUARY, has been made for death and disability
benefits and administration costs :
Complete years of CONTRIBUTORY SERVICE Percentage
less than 6 Nil
6 10
7 20
8 30
9 40
10 50
11 60
12 70
13 80
14 90
15 or more 100
plus interest calculated in the same way as on the MEMBER’S
contributions.
Notwithstanding the provisions of (a) and (b) above, it is specifically provided that the
benefit payable in terms of this Rule 7 (8) (c) shall not be less than the MEMBER’S
INDIVIDUAL RESERVE. Such benefit shall be paid as soon as administratively
practicable.
(d) (i) Deferred pension
If a MEMBER leaves the service of an EMPLOYER in circumstances which
entitle him to a benefit in terms of Rule 7(8)(b) or 7(8)(c), and provided he has
-26-
completed not less than five years of CONTRIBUTORY SERVICE, then, in
lieu of the benefits provided under the said RULES, he shall, at his option,
be entitled to a deferred pension commencing at PENSION AGE calculated
in terms of Rule 7(1) in respect of his CONTRIBUTORY SERVICE to the date
of leaving service.
(ii) Deferred pension - retirement within 15 years of pensionable age
A MEMBER who has elected a deferred pension in terms of this Rule may
elect that his RETIREMENT FROM THE FUND shall take place at any time
within 15 years of PENSIONAGLE AGE, in which event the deferred pension
referred to in sub-clause (i) above shall fall away and on RETIREMENT
FROM THE FUND he shall become entitled to an actuarially reduced
pension.
(iii) Deferred pension - death
In the event of a MEMBER, who has elected a deferred pension in terms of
this Rule, dying before commencement of his pension, an amount equal to
the capitalised value of the deferred pension, as calculated by the
ACTUARY, shall be applied to provide a benefit for his DEPENDANT/S.
Such an amount shall not, however, be less than the benefit calculated at the
date of leaving in terms of Rule 7(8)(b) or 7(8)(c), as the case may be, plus
8% per annum compound interest from the date of leaving service up to the
date of death.
(iv) Application for deferred pension
A MEMBER wishing to elect a deferred pension in terms of this Rule shall
make a written application to the Company not later than one month after the
date of termination of his service.
(v) Deferred pension - re-admission of MEMBER
If a MEMBER who has elected a deferred pension in terms of this Rule
enters the service of an EMPLOYER and, in consequence, is re-admitted as
a MEMBER of the Fund, he shall, at his option, be entitled to request that the
deferred pension fall away and be replaced by a period of CONTRIBUTORY
SERVICE, as calculated by the ACTUARY, in lieu thereof.
(e) (i) Transfer to another Fund
If a MEMBER leaves the service of an EMPLOYER in circumstances which
entitle him to a benefit in terms of Rule 7(8)(b) or 7(8)(c) then he may, at his
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option, transfer such benefit to an approved pension, provident or a
retirement annuity fund.
(ii) If a MEMBER, while remaining in the service of his EMPLOYER, becomes a
MEMBER of an approved pension or provident fund, then an amount
calculated in terms of Rule 7(8)(c) shall be transferred to that fund.
(f) Minimum Benefits Notwithstanding any other provisions of these RULES, it is specifically provided that
as from twelve months after the SURPLUS APPORTIONMENT DATE, the benefit
paid to or in respect of a MEMBER of the Fund prior to retirement other than a benefit
payable in terms of Rule 7(7) shall, subject to the provisions of Section 14A(1)(b) of
the ACT, not be less than his MINIMUM INDIVIDUAL RESERVE.
(9) Unclaimed Benefits
Any benefits due in terms of these RULES and unclaimed after the expiry of a period of three
years from the date on which it first became due shall be placed in an unclaimed benefit
account pending a valid claim by the claimants.
(10) Provisions applicable to a DEFERRED RETIREE
The following provisions shall apply to a MEMBER who has retired from employment in terms
of Rule 7(1) or Rule 7(4) and elected to become a DEFERRED RETIREE :
(a) after the date on which the DEFERRED RETIREE retires from employment in terms
of Rule 7(1) or Rule 7(4), contributions by and in respect of him in terms of Rule 6
shall cease and if he should die before RETIREMENT FROM THE FUND, the death
benefit referred to in Rule 7(7)(a)(i) shall not be payable;
(b) the pension calculated in terms of Rule 7 (1) or Rule 7(4), as applicable, at the date of
the DEFERRED RETIREE’S retirement from employment shall be retained in the
FUND and shall be increased for the period between retirement from employment and
RETIREMENT FROM THE FUND by any increases to pensions and by such
additional percentage as may be determined by THE ACTUARY, and shall be further
adjusted by such reasonable expenses as may be agreed to by the BOARD;
(c) if the DEFERRED RETIREE dies before RETIREMENT FROM THE FUND, such
benefits shall be payable as would have become payable if the DEFERRED
RETIREE had died on the day on which RETIREMENT FROM THE FUND took place
-28-
and had elected to commute the maximum pension permissible in terms of Rule 7(2);
provided that any amount assumed to have been commuted by the deceased
DEFERRED RETIREE shall be paid in terms of Section 37C of the ACT.
-29-
RULE 8 - GENERAL
(1) Guarantees for loans The BOARD shall have the power to furnish a guarantee in respect of a loan to a MEMBER
by a Financial Institution approved by the BOARD for a purpose referred to in Section 19(5)(a)
of the ACT and, if so required for such purpose, may make a deposit in pledge with such
Institution as collateral security. Such guarantee shall be subject to the requirements of the
REGISTRAR and shall further be subject to such conditions as may be determined by the
BOARD from time to time in respect of a minimum loan amount and a maximum level of
collateral as a percentage of the cash benefit payable if the MEMBER were to leave the Fund.
(2) Dismissal of MEMBER - no claim
Nothing in these RULES shall prejudice the right of an EMPLOYER to dispense with the
services of or to dismiss any EMPLOYEE; nor the right of any EMPLOYEE to leave the
service of his EMPLOYER on complying with the conditions of his employment. Any benefit
contingent or absolute to which a MEMBER may claim to be entitled under these RULES shall
not, on his dismissal, be a ground for any claim for damages or any increase in a claim for
damages in any action brought against the Fund or the BOARD or his EMPLOYER in respect
of such a dismissal.
(3) Claim - only in terms of RULES
Any person, whether a MEMBER or otherwise, shall have no claim, right or interest upon the
Fund or any contributions thereto, nor any interest therein or any claim upon or against the
BOARD, except under, and in accordance with, the provisions of these RULES.
(4) Rights of any person under these RULES
Unless otherwise expressly provided for in these RULES:-
(a) The rights, benefits or interest in the Fund conferred on any person under these
RULES shall not be capable of being exercised or claimed in any way by anybody
other than such a person and shall be purely personal to him; they shall not be
capable of being ceded, assigned, transferred, pledged or hypothecated or in any way
alienated by him other than to the BOARD, or of being attached by any creditor, or of
being vested in any other person whomsoever in any capacity.
(b) Suspension of rights
Such rights shall be suspended or withheld on the happening of any of the following
-30-
events:-
(i) If the person concerned purports to transfer or otherwise cede or to pledge or
hypothecate such rights.
(ii) If a creditor of the person concerned attaches under any writ of execution or
causes to be so attached all or any rights under these RULES.
(c) Suspended rights - payment of benefits
In the event of any person's rights being suspended or withheld as aforesaid, the
BOARD may, from time to time, pay out of the Fund (or without notice cease to pay)-
(i) to such a person such amount/s as the BOARD may consider necessary for
the support of such a person; and/or
(ii) to the DEPENDANT/S of such a person such amount/s as the BOARD may
consider necessary for the support of such DEPENDANT/S;
provided that the total payment to any person (and/or DEPENDANT/S)
under this sub-clause shall not exceed the amount which would have been
payable in respect of his rights if such rights had not been determined and
forfeited as aforesaid.
(d) Payment of benefit prior to suspension of rights
Nothing in sub-clause (3)(a) and (b) hereof shall apply in respect of rights, actual
payment of which had already become due out of the Fund at the date of the
happening of any of the events in sub-clause (3)(b) hereof.
(e) Determining date of suspension of rights
The date of the happening of any of the said events for the purpose of clauses (3)(b)
and (3)(d) hereof shall be deemed to be -
(i) in the event of attachment, the date of the writ;
(ii) in any of the other events aforesaid, the date of the instrument or other
agreement; provided that if there shall be more than one date purporting to
be the date upon which any such instrument or other agreement was signed
or entered into, the date for the purposes of this sub-clause shall be deemed
to be the earliest of such dates.
-31-
(f) Rights - not an asset in deceased estate
No rights under these RULES shall be, or shall become, an asset in the deceased
estate of any person, save as is expressly provided for in these RULES.
(5) (a) Discretion of BOARD - payment of benefit If the BOARD, in its absolute discretion, decides that for some good and sufficient
reason it is not desirable to make a payment of a benefit in the manner elsewhere
provided for in these RULES, the BOARD may, in its discretion, pay the benefit -
(i) to the said MEMBER in instalments; and/or
(ii) wholly or partly to his DEPENDANT/S; and/or
(iii) to Trustees either for the benefit of the MEMBER or of his DEPENDANT/S,
or of both; and/or
(iv) in such a manner for the benefit of such a MEMBER and/or his
DEPENDANT/S as the BOARD may determine.
(b) If the MEMBER or DEPENDANT is a minor, the BOARD may pay the benefit to any
person it may deem fit on behalf of such a minor.
(c) Any decision of the BOARD in terms of this Rule may be varied by it from time to time
in its sole and absolute discretion.
(6) (a) Lien on benefit payable
Subject to the provisions of section 37 D of the ACT, the Fund shall have a general
lien on any benefit payable to any MEMBER or DEPENDANT or legal representative
or other beneficiary in respect of any money due by such a MEMBER to the Fund.
(b) MEMBER'S indebtedness to Fund - deduction from benefit payable
The BOARD shall have the right to make such deductions from the benefit to which a
MEMBER or other beneficiary is entitled in terms of the RULES as are permitted in
terms of Section 37D(1)(a), (b) and (c) of the ACT and in respect of which a claim has
been lodged in writing within such reasonable time of the event giving rise to the
benefit as the BOARD may from time to time fix for making such claims; provided
that where an EMPLOYER has instituted criminal proceedings against the MEMBER
-32-
concerned in respect of damage caused to the EMPLOYER as contemplated in
Section 37D(1)(b) of the ACT and following prosecution in a criminal court, the
MEMBER has been convicted, the BOARD shall only effect a deduction from the
MEMBER's benefit if the EMPLOYER has obtained a compensation order from such
court in terms of Section 300 of the Criminal Procedure Act, 1977.
Accordingly, notwithstanding any other provisions of these RULES, the BOARD may,
where an EMPLOYER has instituted legal proceedings against the MEMBER
concerned in respect of damage caused to the EMPLOYER as contemplated in
Section 37D(1)(b) of the ACT, withhold payment of the benefit until such time as the
matter has been finally determined by a competent court of law or has been settled or
formally withdrawn; provided that :
(a) the amount withheld shall not exceed the amount that may be deducted in
terms of Section 37D(1)(b)(ii) of the ACT;
(b) the BOARD in its reasonable discretion are satisfied that the EMPLOYER
has made out a prima facie case against the MEMBER concerned and there
is reason to believe that the EMPLOYER has a reasonable chance of
success in the proceedings that have been instituted;
(c) the BOARD is satisfied that the EMPLOYER is not at any stage of the
proceedings responsible for any undue delay in the prosecution of the
proceedings;
(d) once the proceedings have been determined, settled or withdrawn, any
benefit to which the MEMBER is entitled is paid forthwith; and
(e) the BOARD at the express written request of a MEMBER whose benefit is
withheld, may, if applicable and practical, permit the value of the MEMBER's
benefit as at the time of such request to be isolated, in whatever manner the
BOARD believes appropriate, from the possibility of a decrease therein as a
result of poor investment performance.
Subject to the provisions of the ACT, the BOARD shall have the right to
make such deductions from a MEMBER'S INDIVIDUAL RESERVE as are
permitted in terms of Section 37D (1)(d) of the ACT, and notwithstanding any
other provisions of these RULES, any benefit which becomes payable in
terms of the RULES shall be adjusted in such manner as may be determined
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by the ACTUARY to take into account the value of any amount previously
deducted from a MEMBER'S MINIMUM INDIVIDUAL RESERVE in terms of
this Rule, including any costs incurred by the FUND in giving effect to the
provisions of this Rule.
(c) Restriction of deduction
In those cases where MEMBERS retire on reaching the retirement age, the provisions
of clauses 5(a) and 5(b) hereof are restricted to pension benefits.
(7) Decision of BOARD is conclusive
Any question which may arise with regard to a claim by a MEMBER or ex-MEMBER or his
DEPENDANT/S or legal representative shall be referred to the BOARD, whose decision
thereon, if not contrary to these RULES, shall be final and conclusive.
(8) Judgement of BOARD
In deciding any question of fact, the BOARD may, save as is otherwise provided for in these
RULES, act upon such evidence as it shall deem adequate, whether amounting to legal proof
or not.
(9) BOARD - discretionary power
Subject to the provisions of Section 30A of the ACT, in the interpretation of the meaning of
these RULES the decision and discretion of the BOARD shall be final; provided that
(a) if any person affected by a such decision of the BOARD is dissatisfied with the decision,
he shall have the right to lodge a written complaint as envisaged in Section 30A of the
ACT. If such person remains dissatisfied he may lodge his complaint with the Pension
Funds Adjudicator appointed in terms of the ACT which shall be dealt with in accordance
with Sections 30D to 30P of the ACT;
(b) the EMPLOYER, the BOARD or any other person having a complaint or dispute of fact
or law shall, notwithstanding anything to the contrary in these RULES, have the right to
invoke the complaint procedures in accordance with the ACT.
(10) (a) Amendment of RULES - procedure
The BOARD may
(i) make such new RULES and regulations or alter or repeal any existing rule
as it may deem fit; provided that any such new RULES, alterations or
repeals shall not be to the general disadvantage of MEMBERS and
PENSIONERS;
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(ii) notwithstanding the provisions of the preceding paragraph, if, as a result of
any valuation by the ACTUARY in terms of Rule 3(17), it considers that the
Fund is no longer capable of meeting the charges provided for in these
RULES, make such new RULES or regulations or alter or repeal any
existing rule which it may deem necessary in the circumstances.
(b) Any proposed amendment to these RULES affecting the financial basis of the Fund
shall first be submitted to and reported upon by the ACTUARY and shall be submitted
to the REGISTRAR for approval in accordance with the ACT and if such proposed
amendment to these RULES affects the EMPLOYER'S financial obligations to the
FUND, it must be approved by the EMPLOYER.
(c) The REVENUE AUTHORITIES, the EMPLOYERS and MEMBERS shall be notified
forthwith of any alterations and amendments to these RULES.
(d) No amendments whatsoever may be made to these RULES which have the effect of
altering the main purpose of the Fund, namely the provision of pensions for
MEMBERS at PENSION AGE.
(e) Subject to the approval of the relevant authorities an amendment to the RULES may
be effective from a date preceding its date of registration provided the BOARD so
directs.
(11) BOARD - incorporation and registration of Fund
The BOARD shall be empowered to do such acts and to execute such documents as may be
necessary to incorporate and register the Fund, and if the REGISTRAR or the REVENUE
AUTHORITIES shall at any time refuse to register or approve the RULES of the Fund or any
part thereof for the purpose of enabling the EMPLOYERS or the MEMBERS to obtain the
benefit of exemption or allowance in respect of Income or other tax, or if the BOARD shall
consider it expedient having regard to any ruling of the REVENUE AUTHORITIES with regard
to Income or other tax, then the BOARD may make such alterations in the RULES as may be
necessary to enable such approval to be obtained or to conform with such a ruling.
(12) Winding up
The EMPLOYERS may at any time give six months' notice to the BOARD that they intend to
terminate contributions to the Fund; provided that the Fund shall in any event be terminated if
all the EMPLOYERS are wound up. In such an event, unless the BOARD makes such
arrangements, or enter into such agreements, as it deems fit for the continuance of the Fund,
-35-
the BOARD shall appoint a liquidator who shall liquidate the Fund with effect from the date of
the approval of his appointment by the REGISTRAR. The following provisions shall apply:
(a) in accordance with the instructions of the liquidator, the total moneys available under the
Fund after payment of all expenses incurred in the liquidation shall be applied to provide
benefits for all MEMBERS on an equitable basis recommended by the ACTUARY and
approved by the liquidator;
(b) The amount available for a MEMBER under (a) above shall, as directed by the liquidator,
either
(i) be transferred for his benefit to another arrangement for retirement funding that
has been approved by the REVENUE AUTHORITIES; provided that if such
fund is recognised as a preservation fund, such transfer shall be subject to the
requirements of the REVENUE AUTHORITIES as specified from time to time
and the MEMBER may not transfer any amount to a fund recognised as a
preservation provident fund;or
(ii) if the MEMBER so requests, be paid to the MEMBER as a lump sum benefit;
(c) if a person to whom an amount is payable cannot be traced, the amount referred to in (a)
shall be paid to the Guardian’s Fund;
(d) when all payments have been made by the Fund in terms of (b) above, the Fund shall
have no further liability to any person and the Fund's registration in terms of the ACT
shall be cancelled.
(e) It is specifically provided that the provisions of the Pension Funds Second Amendment
ACT, ACT No. 39 of 2001, shall over-ride any conflicting provisions in this Rule in
particular with regard to payment of minimum benefits and the rights of the stakeholders.
(f) if one of the EMPLOYERS, for any reasons, gives notice in writing to the BOARD of its
intention to cease its participation as an EMPLOYER in the Fund, the provisions of (a) to
(e) above shall apply mutatis mutandis; provided that, that part of the Fund which is to be
liquidated in terms of the ACT shall be limited to the total assets and liabilities attributable
to the MEMBERS related to the withdrawing EMPLOYER as determined by the
liquidator in consultation with the ACTUARY.
or its winding up and for the disposal of the benefit of the PENSIONERS and EMPLOYEES of
the EMPLOYERS who intend discontinuing contributions, or of the EMPLOYER who has
-36-
ceased to qualify or of the EMPLOYER who is wound up, of the part of the Fund relating to
them or in the event of the winding up of the Fund, for the disposal of the whole of the
Fund for the benefit of the PENSIONERS and MEMBERS. The decision of the Fund and
the arrangements and agreements shall be made under the guidance of the ACTUARY. In
no event shall any part of the Fund be paid to any EMPLOYER.
In the event of the winding up of the Fund, the BOARD shall appoint a liquidator for the
purpose and such appointment shall be subject to the approval of the REGISTRAR of
Pension Funds.
(13) Contingency
In the event of a contingency arising which has not been provided for in these RULES, the
decision of the BOARD thereon, if not inconsistent with the provisions of these RULES, shall
be final and conclusive.
(14) Borrowings The BOARD may borrow money at interest or otherwise, provided that borrowings are limited
strictly to temporary loans for bridging unforeseen cash shortages or taking advantage of
attractive investments, and with that object in mind it may pledge or otherwise hypothecate
any or all of the assets of the Fund.
(15) Re-insurance of benefits
The Fund may re-insure with a third party all such portions of the benefits granted by the Fund
as the BOARD may determine from time to time on such terms and conditions as may be
agreed upon by the BOARD.
(16) BOARD'S discretion
The BOARD shall be entitled in its absolute discretion to make arrangements and to do
anything not inconsistent with the provisions of these RULES or any amendments thereof,
which, in its opinion, is for the benefit and protection of MEMBERS and/or persons in receipt
of benefits.
