| 7. | CONTRIBUTIONS | |
| 7.1 | Every employee for whom membership of the Fund is compulsory must contribute 2,5% of their pensionable remuneration to the Fund for each month of employment in the industry. |
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| 7.2 | The contributions payable in terms of clause 7.1 must be calculated and rounded off to the nearest Rand value. Portions of a Rand amounting to 49 cents or less must be discarded. Portions of a Rand in excess of 50 cents must be rounded up to the next Rand value. | |
| 7.3 | The contributions specified must be deducted by the employer from every employee's wage on the first pay day after this Agreement comes into operation, and on each pay day thereafter. | |
| 7.4 | Every employer must contribute an equal amount to the amount deducted in terms of clause 7.2 . | |
| 7.5 | The total amount of contributions deducted from the earnings of employees and contributed by employers must be paid each month to the Council. Each payment must be shown on a written statement containing the following details: | |
7.5.1 |
the name, initials and computer identification number of each employee; |
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| 7.5.2 | the amount of contribution remitted in respect of each employee; | |
| 7.5.3 | the date on which each employee’s service commenced, or terminated. | |
| 7.6 | Every employer must pay the total amount of contributions, and render the statement of details in terms of clause 7.5, to the Council by not later than the 7th day of the following month immediately following that to which the contributions and details relate. The postal address of the Fund is P.O. Box 1964, Roodepoort, 1725. | |
| 7.7 | Forms prepared specifically for the furnishing of the details required by this clause may be obtained from the Principal Officer of the Fund. | |
| 7.8 | If a member wishes to do so, that member may make voluntary additional contributions to the Fund greater than that specified in clause 7.1. | |
| 7.8.1 | Should a member make additional contributions greater than that specified in clause 7.1 the increased contribution amount must remain FIXED for a MINIMUM period of 6 (six) months from the date of the change. | |
| 7.8.2 | Should an employee increase their contributions their employer is NOT obliged to match the increased contribution, but is only liable to pay the prescribed contribution in terms of 7.1 above. | |
| 7.8.3 | Any additional contributions made by members in terms of 7.8 are NOT refundable, except in terms of benefits payable under the Rules of the Fund. | |
| 7.9 | Contributions paid by employers as prescribed in clause 7.4, and by employees, as provided for in clause 7.8, are not refundable, except in terms of benefits payable under the Rules of the Fund. | |
| 7.10 |
If any contributions due in terms of the Rules of the Fund as
stipulated in Section 13 of the Pension Funds Act, 1956 are not paid over to
the Council on the date due the employer must pay interest thereon at the
prescribed rates as published in the Government Gazette dated 26th
February 2006. These rates are as follows: |
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| 1) | Transactions < R10000: Repo rate + 1/3 thereof + 11 percentage points (currently 27%) | |
| 2) | Transactions > R10000: Repo rate + 1/3 thereof + 8 percentage points (currently 24%) | |
| 7.11 | The contributions collected by the Council in terms of this agreement shall be paid over to the to the Fund within 7 days after receipt thereof. | |
| 7.12 | Minimum information as stipulated in Regulation 33 of the Pension Funds Act, 1956 must be submitted to the Fund on a monthly basis which shall consist of at least the following: | |
| (a) | Contribution Statement | |
| (i) | Name of the Fund, period in respect of which the contribution is payable | |
| (ii) | Name and address of the employer | |
| (iii) | Full name, date of birth, ID number, date of membership, pensionable emoluments and percentage or amount of contributions, split between member and employer as well as identification of any additional voluntary contributions paid. | |
| (iv) | A reconciliation with the contribution statement for the previous period showing any differences as a result of membership terminations, adjustments as a result of changes in pensionable emoluments or the payment of additional voluntary contributions or other information and corrections due to error. | |