L4
Contributions
| 4. | CONTRIBUTIONS | |
| 4.1 | Current contributions by MEMBERS |
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| 4.1.1 | As long as a MEMBER is an EMPLOYEE, he/she must make a monthly contribution to the FUND equal to 2,5% of his/her REMUNERATION as contained in the AGREEMENT | |
| 4.1.2 | The EMPLOYER must deduct a MEMBER's contribution for a particular month from the MEMBER's REMUNERATION before or on the last day of that month. | |
| 4.1.3 | If a MEMBER's MEMBERSHIP does commence after the 15th of a month, no contribution is payable for the month in which he/she becomes a MEMBER. | |
| 4.1.4 | The MEMBER's contributions are applied in respect of retirement benefits. | |
| 4.2 | Current contributions by EMPLOYER |
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| 4.2.1 | The EMPLOYER must contribute monthly to the FUND in respect of each MEMBER who is an employee, an amount of 2,5% of his/her REMUNERATION as contained in the AGREEMENT. | |
| 4.2.2 | The EMPLOYER’s current contributions for pension purposes for each month will be equal to the current contributions less contributions in terms of rule 4.2(3) and 4.2(4). | |
| 4.2.3 | Administration expenses. The EMPLOYER also contributes each month a percentage as agreed to by the BOARD, of the MEMBER’s contributions toward the administration expenses of the ADMINISTRATOR | |
| 4.2.4 | Reserve account: The EMPLOYER also contributes each month a percentage towards the reserve account in respect of expenses that need to be paid out of the reserve account. | |
| 4.3 | Contribution for past periods |
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| The MEMBER may make contributions in respect of any past period before commencement of the MEMBER’s MEMBERSHIP that is recognised as pensionable service by the FUND. The past period which is allocated for a specific contribution is determined as if contributions for past periods are payable at the same rate at which current contributions are payable for current periods. | ||
| 4.4 | Collection of contributions to the FUND |
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| Contributions are collected by the COUNCIL from the participating EMPLOYERS on a monthly basis as specified in terms of the AGREEMENT. | ||
| 4.5 | Payment of contributions to the FUND |
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The COUNCIL must pay the contributions which are payable to the FUND in
respect of the MEMBERS directly to the FUND within 7 days of the following
month in respect of which the contributions are payable. If contributions are not paid timeously, interest will be payable by the EMPLOYER to the FUND at the rate prescribed for application to late payments of contributions in terms of the ACT. |
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