The criteria for determining exemptions from the industry provident fund are as follows:
| 4.1 |
Total contributions to the private fund must be at least be equal to those required in terms of the industry fund. |
| 4.2 |
Contribution holidays are to be specifically excluded from proposed rules of Defined Benefit Fund. |
| 4.3 |
Overall benefit package must be on the whole not be less favourable than the benefits provided by the industry fund with particular emphasis on the following: |
| (i) |
Proportion of employer net contributions paid out on withdrawal; |
| (ii) |
The right to transfer actuarial reserve to the industry fund on withdrawal; |
| (iii) |
Cover for death and disability; |
| (iv) |
In the case of Defined Benefit Funds, the basis on which the pension is calculated; |
| (v) |
In the case of the Provident and Defined Contribution funds, the net percentage of the employers' and employees salary actually credited to the fund after allowing for deduction of administration fees and the cost of insured benefits. |
| (vi) |
There must be no waiting period for membership of the fund. |
| 4.4 |
Funds' representatives are to be given the opportunity to address management and the workforce prior to exemption being considered. |
| 4.5 |
The majority (for this instance majority will be 51%) of the employees must support the application for exemption and the remainder will be required to follow the majority decision. Exemption will only be given in respect of all employees in order to avoid selective membership to the disadvantage of the Industry funds. |
| 4.6 |
Where the employees are members of a party trade union, the trade union must support the application. |
| 4.7 |
The exemption must stipulate that it may be withdrawn should circumstances warrant it. |
| 4 8 |
Employees are to be represented on the Board of Trustees of the domestic fund by representatives elected by them. |
| 4.9 |
Benefits may not be reduced. |
| 4.10 |
Full details will be submitted to the Fund Administrators (Alexander Forbes) and a recommendation obtained. |
Basic Conditions of Employment Act, 1997
