In these RULES, unless the context indicates otherwise,

• words defined in the ACT have the meanings assigned to them in the ACT;
• the singular also denotes the plural and vice versa;  and
• the expressions below have the meanings indicated opposite them.

ACT means the Pension Funds Act, 1956 (Act no 24 of 1956), as amended and the regulations promulgated in terms of it.

ACTUARY means the valuator as appointed by the BOARD.

ADDITIONAL VOLUNTARY CONTRIBUTIONS means a MEMBER may, with the approval of the TRUSTEES, undertake to make additional voluntary contributions to the FUND.  The contributions will be credited to the MEMBER’s accumulated credit account.

ADMINISTRATOR means the administrator appointed by the Fund.

AGREEMENT means the current Collective Agreement (including any amendments thereto) relating specifically to the FUND, or in the absence of such an AGREEMENT, the last Collective Agreement (including any amendments thereto) in force relating specifically to the FUND, entered into between the parties to the semi-national Bargaining Council for the Hairdressing & Cosmetology Services Sector and approved by the Minister of Labour in terms of the Labour Relations Act.

APPROVED PROVIDENT FUND means a provident fund, other than a PRESERVATION PROVIDENT FUND, approved as such by the REVENUE AUTHORITIES for the purposes of these RULES.

APPROVED RETIREMENT ANNUITY FUND means a retirement annuity fund approved as such by the REVENUE AUTHORITIES for the purposes of these RULES.

AUDITOR means an AUDITOR registered in terms of the Public Accountants and Auditors Act, 1991 (ACT 80 of 1991), appointed by the BOARD.

BENEFICIARY means a MEMBER, DEPENDANT, NOMINEE or other person to whom a benefit is payable in terms of the RULES.

BOARD means the BOARD which controls and manages the FUND in terms of the RULES.

BOARD MEMBER means a member of the BOARD.

COMMENCEMENT DATE means 1 January 2008.

CONSUMER PRICE INDEX means the consumer price index for all items published in the Government Gazette by Statistics South Africa from time to time.

CONTINGENCY RESERVE ACCOUNT means the CONTINGENCY RESERVE ACCOUNT described in RULE 9.2.

CONTRIBUTIONS FOR RETIREMENT BENEFITS in regard to a MEMBER means the contributions made to the FUND by and in respect of the MEMBER, including transfers from other funds, other than the OLD FUND, made specifically in respect of the MEMBER, less the portion thereof earmarked by the FUND for the following, namely -

• the cost of the administration of the FUND (excluding the investment administration);
• the fees/commission payable to intermediaries, consultants and other professional advisers;
• any extraordinary costs or losses incurred by the FUND not fully paid from the CONTINGENCY RESERVE ACCOUNT;  and
• strengthening of the CONTINGENCY RESERVE ACCOUNT.

COUNCIL means the Hairdressing & Cosmetology Services Bargaining Council semi-national (formerly known as the Industrial Council for the Hairdressing Trade – Southern and Western Transvaal), and includes any successor to that Council, registered in terms of Chapter III Section 29 of the Labour Relations Act.

DEFERRED BENEFICIARY means a MEMBER whose benefit is retained in the FUND in terms of Rule 7.3.

DEPENDANT in regard to a MEMBER means a dependant as defined in the Act.

EMPLOYEE means:  A person –
(a)  who is in the PART-TIME OR FULL-TIME EMPLOYMENT of the EMPLOYER; and
(b)  who is under the age of 55 years as at date of commencement of such employment.

EMPLOYER shall mean any employer who participates in the Fund and has agreed to be bound by the RULES.

With regard to a MEMBER, EMPLOYER means that EMPLOYER by whom the MEMBER is or was last employed.

FULL-TIME EMPLOYMENT means an employee performing normal duties during at least 60% of a working day.

FUND means HAIRDRESSING & COSMETOLOGY INDUSTRY PROVIDENT FUND (herein after referred to as “the FUND”). Where applicable a reference to the FUND must be construed as a reference to the BOARD.

FUND ANNIVERSARY means the first day of April 2009 and the first day of April of each ensuing year.

FUND INTEREST means interest determined by the ACTUARY on behalf of the FUND, taking into account the rate of net investment return (both realised and unrealised) that the FUND earns in respect of the MEMBER.  The FUND INTEREST may be positive or negative depending on circumstances.  At least once every three years, or as otherwise agreed with the FUND, the assets and liabilities of the FUND must be investigated and the FUND INTEREST may be adjusted to take into account the financial position of the FUND. 

FUND REMUNERATION means REMUNERATION.

INCEPTION DATE means the date on which the relevant employer becomes an EMPLOYER.

INDIVIDUAL MEMBER ACCOUNT means the individual account kept for each MEMBER in terms of RULE 9.1.

INDUSTRY means the Hairdressing and Cosmetology Industry as defined in the main AGREEMENT from time to time.

INSURER in regard to a particular liability of the FUND means the REGISTERED INSURER underwriting that liability.

LABOUR RELATIONS ACT means the Labour Relations Act (Act 66 of 1995), and the regulations made in terms of it, or any substituting statutory measures.

MEMBER means any person who is a MEMBER of the FUND in terms of the RULES and MEMBERSHIP has a corresponding meaning.

MEMBER SHARE in regard to any MEMBER means the balance of his/her INDIVIDUAL MEMBER ACCOUNT.

MEMBER TRANSFER CREDIT in regard to an OLD FUND MEMBER means the amount which was transferred from the OLD FUND to the FUND to be applied in respect of the MEMBER, less any tax that has been paid on the transfer.

NOMINEE means a person who is designated by the MEMBER in terms of the RULES to receive benefits at his/her death.

NORMAL RETIREMENT AGE means the age of 60 years.

NORMAL RETIREMENT DATE in regard to any MEMBER means the last day of the month in which he/she reaches the NORMAL RETIREMENT AGE.

OLD FUND means a retirement fund in which the MEMBER participated immediately prior to his/her entry to the FUND.

OLD FUND MEMBER means a MEMBER who was a member of the OLD FUND immediately before his/her entry to the FUND, and who has remained a MEMBER of the FUND without interruption ever since.

PART-TIME EMPLOYMENT means an employee who is employed for not less than one day per week or not more than three days per week.

PENSIONABLE SERVICE means the period of service in respect of which contributions are made in terms of Rule 4.1 and if applicable, the period recognized in terms of service before the INCEPTION DATE.

PRESERVATION PROVIDENT FUND means an APPROVED PROVIDENT FUND recognised as a preservation fund, subject to the conditions set out by the REVENUE AUTHORITIES from time to time.

PRINCIPAL OFFICER means the Principal Executive officer referred to in Section 8 of the ACT appointed in terms of the RULES.

REGISTERED INSURER means an institution which is registered in terms of the Long-term Insurance Act, (Act No. 52 of 1998).

REGISTRAR means the Registrar of Pension Funds.

REMUNERATION in regard to any MEMBER means the total of -

• the amount of the basic cash remuneration that the MEMBER receives from the EMPLOYER, plus

• any amount determined by the EMPLOYER and communicated to the FUND,
  provided that this total does not exceed the total cost incurred (either conditionally or not) by the EMPLOYER in respect of the MEMBER’s service with the EMPLOYER.

REVENUE AUTHORITIES means the statutory revenue authorities whose approval of the FUND is required.

RULES means the rules of the FUND .