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

Bargaining Council for the South African Road Passenger (SARPBAC)

Rules Retirement Fund (Provident)

Rule B 2 - General Provisions Concerning Benefits

 

 

B 2.1        NET EMPLOYER CONTRIBUTIONS ACCOUNT

 

B 2.1.1 A NET EMPLOYER CONTRIBUTIONS ACCOUNT will be held in respect of each MEMBER and will contain the contributions paid in terms of  Rules A 2.2, together with the investment  returns credited to such contributions as described hereunder.

 

B 2.1.2        Subject to Rule B 2.3, the NET EMPLOYER CONTRIBUTIONS ACCOUNT is equal to:

B 2.1.2.1 the balance in the NET EMPLOYER CONTRIBUTIONS ACCOUNT at the most recent ANNIVERSARY DATE, plus
B 2.1.2.2 NET   EMPLOYER   CONTRIBUTIONS since the ANNIVERSARY DATE (if any) made in terms of Rule A 2.2; plus
B 2.1.2.3 interest as declared by the BOARD OF TRUSTEES.

 

B 2.2        MEMBER'S ADDITIONAL  CONTRIBUTIONS ACCOUNT

 

B 2.2.1 The ADMINISTRATOR shall maintain a MEMBER'S ADDITIONAL CONTRIBUTIONS ACCOUNT for each MEMBER who has made contributions in terms of Rule A2.3. This account will contain the contributions paid in terms of Rules A 2.3 together with the investment returns credited to such contributions as described hereunder.

 

B 2.2.2        Subject to Rule B 2.3, the amount in the MEMBER'S ADDITIONAL CONTRIBUTIONS ACCOUNT will be:

B 2.2.2.1 the balance in the MEMBER'S ADDITIONAL CONTRIBUTIONS ACCOUNT at the most recent ANNIVERSARY DATE; plus
B 2.2.2.2 contributions made in terms of Rule A 2.3 since the ANNIVERSARY DATE; plus
B 2.2.2.3 interest as declared by the BOARD OF TRUSTEES.

 

B 2.3        Account Balances

 

B 2.3.1        The sum of the balances in the:

 

B 2.3.1.2 NET EMPLOYER CONTRIBUTIONS ACCOUNTS;

plus

B 2.3.1.3 MEMBER'S ACCOUNTS ADDITIONAL CONTRIBUTIONS

shall, notwithstanding anything to the contrary contained in these RULES, not exceed the value of the assets of this FUND. The balances in each of the said accounts will , be adjusted proportionally to achieve equality between the said amounts at any time but at least at each ANNIVERSARY DATE.

 

B 2.3.2 Notwithstanding   anything  to  the  contrary  contained  in  these RULES,  a  MEMBER'S  benefit  under  the  FUND  at  any  time, excluding the GROUP INSURANCE BENEFITS specified in the  SCHEDULE, is limited to the MEMBER'S SHARE.

 

B 2.4        Payments by the INSURER and FUND

 

All amounts which are payable by the INSURER in terms of the POLICIES are paid, subject to Rule B 2.5, to the FUND. The FUND shall effect payment, according to the instructions of the BOARD OF TRUSTEES, directly  to  the  persons  entitled  thereto  in  terms  of  these  RULES.  This procedure, as well as the other provisions of this Rule 8 2, is subject to such alternative procedures for the payment of benefits as may be agreed on from time to time by the FUND, subject to the provisions of the ACT.

 

B 2.5        lnsurance of benefits and liability

 

B 2.5.1 In terms of Rule B 1.3.3, the FUND is required to effect group POLICIES in respect of all the benefits set out in these RULES. In respect of the GROUP INSURANCE BENEFITS specified in the SCHEDULE, the application of the said Rule in respect of each MEMBER is subject to the INSURER accepting such insurance in terms of the POLICY issued to the FUND, and subject to the FUND paying the required premium to the INSURER.

 

B 2.5.2 The liability of the  INSURER is determined  exclusively  by the conditions of the POLICIES and, subject to the provisions of the POLICIES, the INSURER is not bound by these RULES or by any amendments thereto.

 

B 2.5.3 The liability of the FUND in respect of the payment of GROUP INSURANCE BENEFITS in terms of these RULES shall not be greater than the liability assumed by the INSURER.

 

B 2.6        Proof of age

 

Proof of the age of a MEMBER shall be required before any benefit in respect of such MEMBER is paid and shall be submitted by the MEMBER on entry to the FUND.

 

B 2.7        Payment of benefits

 

B 2.7.1 The FUND shall pay the benefits that become payable in terms of these RULES in respect of any person, to such person if he is still alive.

 

B 2.7.2 Where the death benefit in terms of Rule A 5 is due and the benefit is not payable to a specific DEPENDANT in terms of these RULES, the FUND shall effect payment in terms of Section 37C of the ACT.

 

B 2.7.3        Should a MEMBER die after the date of accrual of his:

(i) withdrawal benefit in terms of Rule A 3; or
(ii) retirement benefit in terms of Rule A 4;

but prior to the payment of such benefit, the FUND shall effect payment of the benefit to the deceased MEMBER'S estate.

 

Notwithstanding the above, the executor of the deceased MEMBER'S estate may advise the FUND to pay such benefit as instructed by the MEMBER at the accrual date of the  benefit (where  applicable).

 

B 2.8        Deduction from benefits

 

B 2.8.1 Notwithstanding anything to the contrary contained in these RULES, the FUND may deduct an amount as permitted in terms of Section 37D of the ACT from:
(i) benefits which  are payable according to the RULES; and
(ii) the MEMBER'S SHARE

 

Such amounts will be paid to the persons to whom or bodies to which they are due, provided that a claim has been lodged in writing with the ADMINISTRATOR before the benefit has been processed and paid.

 

B 2.8.2 Where a benefit becomes payable in terms of these RULES, the BOARD OF TRUSTEES may, if necessary, appoint tracing agents to locate the MEMBER or the deceased MEMBER'S DEPENDANT(S) and/or such other person(s) entitled  thereto (as the case may be). The  costs incurred in tracing such MEMBER, DEPENDANT(S) and/or such other person(s) will  be  deducted from the  said  benefit  before  payment  is made  in terms of  Rule B 2.7.

 

B 2.8.3        Any other administrative costs arising, other than:

(i) the agreed upon administration fee that is payable to the ADMINISTRATOR to administer the FUND; and
(ii) the costs set out in Rule B 2.8.2 above,

will be applied to the effected group of MEMBERS and deducted from their MEMBERS' SHARES.

 

B 2.9        Benefits inalienable

 

Save to the extent  permitted  by the ACT, the  Income Tax Act and the Maintenance Act, no MEMBER or DEPENDANT has the right to transfer, cede, pledge or hypothecate any benefit available in terms of these RULES. Such benefit and any contributions made by or in respect of the MEMBER are safeguarded against any form of confiscation under a judgement or order of a court  of  law,  and  do  not  vest  in the  estate  of  the  MEMBER  or DEPENDANT on insolvency or assignment.

 

B 2.10         Transfer of benefits from or to other funds

 

In collaboration with the MEMBER and other funds and subject to the requirements of the ACT and the COMMISSIONER, the FUND is empowered to:

 

B 2.10.1 receive transfers of benefits from:
(i) APPROVED PENSION FUNDS;
(ii) APPROVED PROVIDENT FUNDS; and
(iii) APPROVED PRESERVATION PROVIDENT FUNDS,

 

B 2.10.2 and effect transfers of benefits to:
(i) APPROVED PENSION FUNDS;
(ii) APPROVED  PROVIDENT  FUNDS;
(iii) APPROVED RETIREMENT ANNUITY FUND;
(iv) APPROVED PRESERVATION PROVIDENT FUND, provided a MEMBER'S benefit may not be split between more than one APPROVED PRESERVATION, PROVIDENT FUND; or
(v) APPROVED PRESERVATION PENSION FUND, provided a MEMBER'S benefit may not be split between more than one APPROVED PRESERVATION PENSION FUND,

on such conditions as the FUND, in consultation with the ADMINISTRATOR, may lay down.

 

The FUND is also empowered to effect transfers to APPROVED UNCLAIMED BENEFIT PROVIDENT PRESERVATION FUNDS, subject to the requirements of the ACT and the COMMISSIONER, on such conditions as the FUND, in consultation with the ADMINISTRATOR, may lay down.

 

Where transfers are received from other funds, such transfers are subject to the provisions of these RULES, unless otherwise agreed on by the parties concerned.

 

B 2.11 Greater benefits

 

Subject to any conditions that the ADMINISTRATOR and the FUND may impose, and subject to the approval of the COMMISSIONER, the EMPLOYER has the right to instruct the FUND to allocate greater benefits than those provided for in these RULES. The cost of any greater benefit shall be borne by the EMPLOYER.

 

B 2.12 Actuarial investigation

 

In order for the FUND to apply for continued exemption from the requirement to appoint a VALUATOR and submit triennial actuarial valuations in terms of sections 9A and 16 of the ACT, the BOARD OF TRUSTEES shall adhere to the REGISTRARs' requirements in this regard.

 

B 2.13 Financial statements

 

The BOARD OF TRUSTEES shall submit the financial statements prescribed by section 15 of the ACT within 6 months of the end of every FINANCIAL YEAR to the REGISTRAR.

 

B 2.14 Accounts

 

B 2.14.1 All money received on account of the FUND must be paid into a banking account opened in the name of the FUND.

 

B 2.14.2 The BOARD OF TRUSTEES will cause full and true accounts of the FUND to be kept, such accounts to be made up as at the end of each FINANCIAL YEAR, be audited by the AUDITOR and submitted to the REGISTRAR.