Miscellaneous Provisions

L12
Miscellaneous Provisions

12.	MISCELLANEOUS PROVISIONS
12.1	Date on which Benefits become Payable
	Benefits arising from a MEMBER’s termination of service, retirement or death do not become payable before the day from which the amounts standing to the credit of the MEMBER in the FUND must be held in near-cash in terms of RULE 10.1(1).
12.2	Manner of Payment of Benefits
	Benefits payable to a BENEFICIARY, are paid by way of an electronic transfer into the BENEFICIARY's account at a deposit taking institution, the details of which have been furnished by the EMPLOYER or the BENEFICIARY to the FUND. At the special request of any BENEFICIARY and the completion of an indemnity payment can be made by means of a non transferable cheque made payable to the BENEFICIARY and posted to the postal address as notified to the FUND by the EMPLOYER or the BENEFICIARY. Posting the cheque to this address will constitute full payment, and the BENEFICIARY will carry the risk of the cheque's being lost or stolen or fraud being committed after it was posted.
12.3	Beneficiaries of Death Benefits
	12.3.1	Subject to the prescriptions laid down by the FUND, a MEMBER may, in writing, designate a person (and revoke such a designation in writing) to receive the benefits at his/her death.
	12.3.2	The benefits payable to the DEPENDANTS and NOMINEES of a deceased MEMBER, other than those payable to a particular DEPENDANT in terms of the RULES, are paid by the FUND to the DEPENDANTS and NOMINEES in accordance with section 37C of the ACT.
	12.3.3	If a DEPENDANT or NOMINEE is a minor and the MEMBER has not designated a trustee to whom/which the benefit must be paid for the benefit of the DEPENDANT or NOMINEE, the FUND may pay that DEPENDANT or NOMINEE’s benefit to a trust to administer it and pay it to the DEPENDANT or NOMINEE at the discretion of the trustees of the trust.
12.4	Benefits inalienable
	12.4.1	All benefits and rights to benefits in terms of these RULES are subject to the prohibitions as to reduction, cession, attachment, etc. contained in sections 37A and 37B of the ACT.
	12.4.2	Subject to RULE 12.6, any benefit payable regarding a deceased MEMBER by the FUND, does not form part of the assets in the estate of such a MEMBER.
12.5	Guarantees by the Fund for Housing Loans
	The BOARD may bind the FUND as guarantor for the due repayment by a MEMBER of his/her indebtedness in terms of a loan granted by some other person to him/her for a residence. The amount of the guarantee may not exceed the cash benefit that the MEMBER would receive if he/she were to terminate his/her MEMBERSHIP of the FUND voluntarily, less any tax payable thereon, and the amount of any pension interest, as defined in the Divorce Act, 1979, allocated to an ex spouse in terms of a court order. The furnishing of the guarantee is further subject to section 19(5) of the ACT.
12.6	Deductions from Fund
	12.6.1	The BOARD may, subject to section 37D of the ACT, deduct certain amounts from the benefit to which a BENEFICIARY is entitled in terms of the RULES. These amounts are: (a) the amount of any income tax payable on the benefit; (b) any amount due to the FUND or the EMPLOYER by the MEMBER regarding a loan granted to the MEMBER for a residence, including a guarantee furnished by the FUND regarding such a loan; (c) compensation for any damage caused to the EMPLOYER by reason of any theft, dishonesty, fraud or misconduct by the MEMBER and regarding which the MEMBER has, in writing, admitted liability to the EMPLOYER or judgment has been obtained against the MEMBER in any court; (d) any amount which the FUND must pay by arrangement with, and on behalf of, a BENEFICIARY in respect of - (i) the BENEFICIARY's subscription to a registered medical scheme; or (ii) any insurance premium payable by the BENEFICIARY to a REGISTERED INSURER; or (iii) an amount for any purpose approved by the Registrar of Pension Funds, on the conditions laid down by the Registrar.
	12.6.2	A claim for the amount due in terms of paragraphs (b) and (c) of sub-RULE (1) must be lodged in writing with the BOARD within such reasonable time of the event giving rise to the payment of the benefit as the BOARD may from time to time determine for lodging such claims.
	12.6.3	Pending judgement determining the liability for compensation envisaged in paragraph (c) of sub-RULE (1), the FUND may withhold an amount up to the value of the claim for a reasonable period, provided that the balance of the benefit must be paid in accordance with the RULES applicable to that benefit.
	12.6.4	The FUND's right to recover or withhold amounts from benefits in terms of paragraphs (b) and (c) of sub-RULE (1), is limited to the amount that, in terms of the RULES, may be taken by the BENEFICIARY as a lump sum benefit. In order to make deductions from benefits payable regarding a MEMBER the BOARD may commute for a lump sum an amount of any pension becoming payable regarding the MEMBER up to the maximum amount which may be commuted in terms of the RULES.
12.7	Currency
	All amounts payable to or by the FUND in terms of the RULES are payable in the Republic of South Africa in the currency of the Republic of South Africa.
12.8	Transfers from or to other Funds
	12.8.1	The FUND, in consultation with the EMPLOYER and other funds, may receive benefits from or transfer benefits to those funds on the conditions laid down by the FUND, provided that in the case of a transfer to a provident fund income tax is deducted in terms of the Act.
	12.8.2	For the purposes of determining benefits, transfers from funds, other than the OLD FUND, are deemed to be MEMBER and EMPLOYER contributions for past periods in the proportion which applied in terms of the previous fund, unless otherwise agreed with the MEMBER.
	12.8.3	Transfers to funds recognised by the REVENUE AUTHORITIES as preservation funds are subject to the provisions of RULES 7.2(2), 7.2(3) and 7.2(4).
12.9	Proof of Claims
	The FUND is not obliged to grant any benefit unless it has been satisfied with regard to the MEMBER's age and with regard to any other circumstance which it considers relevant to the benefit and for which it requested proof or information.
12.10	Unclaimed Benefits
	Unclaimed benefits, except benefits which become payable at the death of a MEMBER, must remain in the FUND until they are claimed by a legitimate BENEFICIARY or the FUND is dissolved or partially dissolved in terms of Section 28 of the ACT in which event they must be paid into the Guardian’s Fund.
12.11	Keeping of Moneys and Accounts
	The BOARD must ensure that - (a) the assets of the FUND consist only of claims against one or more INSURERS; (b) every benefit is paid solely by one or more INSURERS; (c) the contributions payable to the FUND are paid into a bank account of the FUND one INSURER accepts the responsibility to act as administering INSURER for the purposes of the regulations to the ACT.
12.12	Binding force of the Rules
	The RULES bind the EMPLOYER, the MEMBERS, the FUND and its officials and anyone who lays a claim in terms of the RULES or whose claim is derived from someone so claiming.
12.13	Disputes
	In a dispute regarding the interpretation of the RULES or the administration of the FUND, the complainant must submit his/her complaint to the FUND in writing. Within thirty days of receipt of the complaint the FUND must answer in writing. If the complainant is not satisfied with the FUND's answer and the complaint is a complaint as defined in the ACT, the complainant may lodge the complaint with the Pension Funds Adjudicator.
12.14	Inspection of and Copies of Documents of the Fund
	The RULES, any policies insuring benefits of the FUND and the latest financial statements of the FUND will be open for inspection by MEMBERS at the personnel office of the EMPLOYER at any reasonable time. MEMBERS may, at a reasonable fee determined by the FUND, obtain copies of the RULES.
12.15	Conditions of Service
	Nothing in these RULES curtails the EMPLOYER's right to dismiss an EMPLOYEE from its service.
12.16	Dissolution of the Fund
	12.16.1	The BOARD may, after consultation with EMPLOYER. and subject to prior notice to the MEMBERS, instruct the BOARD to have the FUND dissolved.
	12.16.2	No contributions are payable to the FUND for the period following the month in which the notice was given to dissolve the FUND.
	12.16.3	If the FUND is to be dissolved the BOARD must, subject to the approval of the Registrar of Pension Funds, appoint a liquidator.
	12.16.4	The liquidator must, after taking into account the costs of the dissolution, firstly apply the assets of the FUND by purchasing, from a REGISTERED INSURER, regular income benefits for the MEMBERS who, on the date of liquidation, have already reached the NORMAL RETIREMENT DATE and others to whom payments are already being made in terms of the RULES. The benefits purchased for them in terms of this sub-RULE must be equal in value to the benefits to which they are entitled in terms of the RULES. But the liquidator may, at the request of a MEMBER, convert a part or the whole of the MEMBER’S benefit entitlement in terms of this sub-RULE into a lump sum payment
	12.16.5	After provision has been made for payments in accordance with the preceding sub-RULE, the liquidator must divide any balance of the assets amongst the MEMBERS and the persons referred to in the preceding sub-RULE and all the other MEMBERS on an equitable basis.
	12.16.6	The amount allocated in terms of the preceding sub-RULE to a MEMBER or person referred to in RULE 12.16(4) must be paid in a lump sum. The amount allocated to one of the other MEMBERS (i.e. those prospectively entitled to benefits) must be paid in a lump sum, or, at the request of a MEMBER, be transferred to and applied under another fund providing retirement benefits or be applied to purchase a retirement benefit for him/her from a REGISTERED INSURER. Transfers to funds recognised by the REVENUE AUTHORITIES as preservation funds are subject to the provisions of RULES 7.2(2), 7.2(3) and 7.2(4).
	12.16.7	For the purposes of this RULE, any MEMBER or former MEMBER whose service with the EMPLOYER is terminated, voluntarily or otherwise, prior to the NORMAL RETIREMENT DATE and during a period immediately preceding the liquidation may, if considered appropriate by the liquidator, be deemed to have been a MEMBER and EMPLOYEE on the date of liquidation. But the benefits already paid to him/her must be taken into account. The liquidator must invoke this provision at least in respect of those whose service was terminated during the twelve months immediately preceding the liquidation.
12.17	Termination of an Employer"s participation
	12.17.1	The provisions of this RULE apply to the termination of an EMPLOYER’s participation in the FUND where the MEMBERS in its service are not transferred as a group to another approved retirement fund in which it participates. An EMPLOYER wishing to terminate its participation in the FUND in this manner must give prior notice to the BOARD and the MEMBERS in its service. The participation by an EMPLOYER, must also be terminated in terms of the following provisions of this RULES is: It is provisionally liquidated; It ceases to carry on business; and does not transfer the MEMBERS in its services as a group to another approved retirement Fund in which it participates. In the event of an EMPLOYER failing to fulfill its obligations in terms of the RULES or in terms of an agreement on the administration of the FUND, the FUND will furnish a written request to the EMPLOYER to rectify such failure within thirty days. Failure to rectify within thirty days will entitle the FUND to terminate the participation in the FUND of the EMPLOYER and its EMPLOYEES in terms of this RULE by giving one month’s written notice.
	12.17.2	The BOARD must, subject to the approval of the Registrar of Pension Funds, appoint a liquidator. If participation by one of a number of EMPLOYER’s is terminated, the interests in the fund of – (a) the MEMBER in the service of that EMPLOYER; and (b) those to whom payments are then being made in terms of the RULES on account of their or someone else’s retirement of death while they were in the service of that EMPLOYER, after the costs of the termination of the EMPLOYER’s participation in the FUND have been taken into account, must, in a manner determined by the liquidator, after consulting the EMPLOYER, be transferred to and applied under another fund providing retirement benefits or be used to purchase retirement benefits or regular income benefits for them from a REGISTERED INSURER. But if the amount relating to a particular MEMBER or person is, in the opinion of the liquidator, not able to be applied satisfactorily in such a manner, it may be paid in a lump sum. And, at the request of a MEMBER referred to in paragraph (a), the liquidator may in any event pay the MEMBER’s interests in the FUND to the MEMBER in a lump sum. Transfers to funds recognized by the REVENUE AUTHORITUES as preservation funds are subject to the provisions of RULES 7.2.
	12.17.3	In the preceding sub-RULE the interests in the FUND in respect of any person mean the FUND’s accumulated liability in respect of the person, determined by taking into account the rights and reasonable expectations to benefits in terms of the RULES and additional benefits the payment of which has become established practice.
12.18	Termination of an Employer's participation in terms of section 14 of the Act
	12.18.1	The provisions of this RULE apply to an EMPLOYER that terminates its participation in the FUND and transfers the MEMBERS in its service as a group to another approved retirement fund in which it participates.
	12.18.2	An EMPLOYER wishing to terminate its participation in the FUND in this manner must give prior notice to the BOARD and the MEMBERS in its service.
	12.18.3	The interests in the FUND of - (a) the MEMBERS in the service of the EMPLOYER; and (b) those to whom payments are then being made in terms of the RULES on account of their or someone else's retirement or death while they were in the service of the EMPLOYER, must, in a manner agreed to by the BOARD, after consulting the EMPLOYER, be transferred to and applied under the other fund providing retirement benefits in which the EMPLOYER participates. Alternatively, the interests in the Fund of the persons referred to in paragraph (b) may be used to purchase retirement benefits or regular income benefits for them from a REGISTERED INSURER.
	12.18.4	The interests in the FUND of a MEMBER or person referred to in the preceding sub-RULE are determined in the same manner as in the preceding RULE except that the determinations are arranged by the BOARD and not the liquidator.
	12.18.5	The EMPLOYER may determine that the interests in the FUND of the MEMBERS in its service be applied under the other fund in which the EMPLOYER participates on the basis that the transfer does not amount to an individual allocation of or vesting of rights in the assets of the FUND among the MEMBERS.
12.19	Recognition or Amalgamation of an Employer
	If an EMPLOYER is reconstructed in a similar or amended form or is amalgamated with a company or organisation, the BOARD, in consultation with the reconstructed or amalgamated company or organisation must decide whether - (a) the EMPLOYER’s participation in the FUND should continue in the same or an amended form, with the reconstructed or amalgamated company or organisation taking the place of the EMPLOYER; or (b) the EMPLOYER's participation in the FUND should cease. But option (a) is only available if the reconstructed or amalgamated company or organisation is recognisably the successor to the business and workforce of the EMPLOYER and such company or organisation qualifies for participation in the FUND.
12.20	Amendment to the Rules
	12.20.1	With the exception of RULE 12.16(7) the FUND may amend the RULES at any time, provided that - (a) Where the EMPLOYER’s financial obligations are directly affected, the EMPLOYER agrees to it; and (b) the approval of the REVENUE AUTHORITIES is obtained; and (c) the Registrar of Pension Funds registers the amendment.
	12.20.2	The FUND must arrange for the Registrar of Pension Funds and the REVENUE AUTHORITIES to be notified of every amendment to the RULES.
	12.20.3	If the RULES are amended with regard to the benefits that are provided by the FUND, the amendment will, unless specifically stated otherwise, not apply to - (a) the benefits in respect of MEMBERS who are no longer EMPLOYEES on the amendment date; and
	12.20.4	Once any amendment to the RULES has been registered by the Registrar, or at least once every year, the BOARD must notify the MEMBERS of every amendment to the RULES.

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