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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Motor Industry Bargaining Council (MIBCO)

Motor Industry Sick, Accident and Maternity Pay Fund Agreement, 2017

Clause 10 - Financial Control

 

(1) The contributions that the MSSC receives on behalf of the Fund in terms of Clause 6(1)(c), for MISA members from RMI employers and which contributions, as per the Rules of the Fund, are to be used to pay death and funeral benefits to MISA members, shall be paid by the MSSC to MISA within three days of receipt. MISA shall provide the MSSC with the banking details to effect such payment.

 

(2) The contributions that the MSSC received on behalf of the Fund in terms of clause 6(1)(c) for Voluntary members of RMI employers and which contributions, as per the Rules of the Fund, are to be used to pay death and funeral benefits to Voluntary members, shall be paid by the MSSC to the RMI Employee Benefit Fund Accountant within three days of receipt.  MISA shall provide the MSSC with the banking details to effect such payment.

 

(3) The balance of the monies received by the MSSC on behalf of the Fund, in respect to sick, accident and maternity benefits as per the Rules of the Fund shall be deposited in an account or accounts in the name of the Fund at a financial institution approved by the parties within three days of receipt and all disbursements from such account(s) shall—
(a) require the sanction of the MSSC Board;
(b) be effected by non-transferable cheque or other written instrument signed by two persons duly authorised thereto by the MSSC Board;
(c) in respect of benefits payable by the Fund, be suspended whenever the total amount standing to the credit of the account of the Fund falls below R20 000 and until such time as it rises above R40 000.

 

(4) Full, undivided and unqualified liability shall accrue to MISA, should the RMI-Employee Benefit Fund account not be able to meet its obligations towards the beneficiaries of the Fund insofar as the disbursement of claims are concerned.

 

(5)

(a) All moneys received by the MSSC on behalf of the Fund excluding monies received in terms of clause 6(1)(c) shall be credited in the MSSC's books of account separately in accounts reflecting—
(i) all contributions received and benefits paid in respect of those members for whom contributions are payable in terms of subclause 6(1)(a); and
(ii) all contributions received and benefits paid in respect of those members for whom contributions are payable in terms of subclause 6(1)(b).
(b) All monies received by the MSSC on behalf of the Fund in terms of clause 6(1)(c) shall be paid over to the respective accounts as per clause 10(1) and 10(2) above.
(c) The provisions of clause 10(3)(c) shall apply mutatis mutandis to any benefits payable from the different accounts provided for in subclause (5)(a) of this clause.

 

(6) The Board of the MSSC shall furnish the Council with regular reports containing, inter alia, particulars of the benefits and assistance provided by the Fund and moneys received and disbursed by the Fund for the period to which the report relates.

 

(7)

(a) The MSSC Board shall submit to the Council by not later than 15 February each year statements audited by the auditor appointed in terms of clause 9(4)(b) and countersigned by the Chairman showing the income and expenditure of the Fund in terms of clauses 6(1)(a), 6(1)(b) for the preceding 12 months ended 31 December and its assets and liabilities as at that date.

These statements and the auditor's report thereon shall be available at the offices of the MSSC for inspection by contributors to the Fund who shall be entitled to make copies thereof or to take extracts therefrom.

(b) From the audited statements referred to herein the Secretary of the Council shall prepare a consolidated income and expenditure account and balance sheet of the Fund, cause these to be audited by the Council's auditors and approval by the Council.

 

(8) MISA shall have full control over the monies paid into the RMI Employee Benefit Account for Voluntary members, which monies MISA shall use as per the Rules of the Fund.

 

(9) All expenses incurred by MISA in connection with the administration of the RMI Employee Benefit Fund Account and the administration of claims in respect of Voluntary members shall form charge against the said account.

 

(10) MISA shall ensure that all monies received in the RMI Employee Benefit Fund Account shall be credited in separate books of account, reflecting—
(a) all contributions received;
(b) all benefits paid to Voluntary members to whom death and benefit contributions were paid.

 

(11) MISA shall furnish the RMI with quarterly reports containing inter alia particulars of monies received in the RMI Employee Benefit Account, disbursements paid from the account, and death and funeral benefits paid to voluntary members.

 

(12) MISA shall submit to the Council not later than 15 February each year financial statements audited by the auditor appointed by the parties to this Agreement, showing the income and expenditure pertaining to the RMI Employee Benefit Fund Account for the preceding 12 months ending 31 December, provided that the first financial statement shall not be submitted by no later that 15 February 2019.