Accounts and Reserves

L9
Accounts and Reserves

9.	ACCOUNTS AND RESERVES
9.1	Individual Member Account
	9.1.1	FUND keeps an INDIVIDUAL MEMBER ACCOUNT for each MEMBER which is credited with - (a) the MEMBER TRANSFER CREDIT and the EMPLOYER TRANSFER CREDIT, if any; (b) the CONTRIBUTIONS FOR RETIREMENT BENEFITS in respect of the MEMBER; (c) FUND INTEREST if the rate of FUND INTEREST is positive.
	9.1.2	The INDIVIDUAL MEMBER ACCOUNT is debited with - (a) the portion of the MEMBER SHARE which is payable to BENEFICIARIES in terms of the RULES; (b) FUND INTEREST if the rate of FUND INTEREST is negative.
9.2	Contingency Reserve Account
	9.2.1	The FUND keeps an CONTINGENCY RESERVE ACCOUNT to which is credited-
		(a) the portion of investment proceeds pertaining to the MEMBER SHARE which is to be applied or kept as a reserve for the payment of any tax or levy pertaining to those investments; (b) interest charged, in terms of the ACT, on late payment of contributions and which is agreed to by the BOARD after consulting with the ADMINISTRATOR. (c) A part of the contributions as calculated by the ADMINISTRATOR with the approval of the BOARD. (d) the net investment return on the amount in the CONTINGENCY RESERVE ACCOUNT.
	9.2.2	At the discretion of the BOARD, the CONTINGENCY RESERVE ACCOUNT may be debited with the following -
		(a) any taxes and levies not taken into account in the costs of the administration of the FUND or the investment of its assets; (b) premiums for fidelity and professional indemnity insurance taken out by the FUND; (c) fees and reimbursements payable to consultants, advisers and other service providers appointed by the FUND; (d) the costs of any audits of the FUND; (e) reasonable traveling and accommodation expenses incurred by the BOARD MEMBERS in directing, controlling and overseeing the operation of the FUND; (f) costs of training of BOARD MEMBERS.
	9.2.3	On liquidation of the FUND, the balance in the account must be applied in accordance with section 15 I of the Act.

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