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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 3 - Dissolution of the Fund



B 3.1        Winding up of the EMPLOYER


B 3.1.1 If the EMPLOYER is wound up, whether voluntarily or not, or if the EMPLOYER ceases to carry on business, the EMPLOYER'S participation in the FUND shall be dissolved in terms of Rule B 3.2 mutatis mutandis.


B 3.1.2 If the EMPLOYER amalgamates with, or if the control of the EMPLOYER is transferred or sold to a company or organisation not associated with the FUND, the EMPLOYER may, in consultation with the BOARD OF TRUSTEES, elect:


B that the interest of each MEMBER and beneficiary, as determined by the VALUATOR, be transferred to a new or existing APPROVED PROVIDENT FUND, APPROVED PENSION FUND, APPROVED RETIREMENT ANNUITY FUND  or APPROVED PRESERVATION PROVIDENT FUND for his benefit; or


B to continue participating in the FUND in respect of existing MEMBERS and beneficiaries, in which event the FUND shall not be affected, provided  that the requirements for participation as contained   in the definition of EMPLOYER are met; or


B to withdraw wholly from the FUND, in which event the EMPLOYER'S participation in the FUND shall be dissolved in   accordance with Rule B 3.2 mutatis mutandis.


B 3.1.3  If the EMPLOYER is wound up for the purpose of restructuring in a similar or amended form, the restructured company or organisation shall however have the right to take the place of the EMPLOYER   and  if  the  EMPLOYER  exercises  that  right,  the FUND shall not be affected except that "EMPLOYER" shall then mean the company or organisation as restructured.


B 3.2        Dissolution of the FUND


B 3.2.1 The  BOARD OF TRUSTEES must,  with  the  REGISTRAR'S approval, appoint a LIQUIDATOR who will commence with the liquidation of the entire FUND or the interest in the FUND of the MEMBERS in the service of a certain EMPLOYER (as the case may be) in terms of this Rule B 3.2 and the ACT.


B 3.2.2 As at the TERMINATION DATE all amounts still to be debited or credited to Accounts maintained by the ADMINISTRATOR in respect of the FUND shall be so debited or credited (including any debt in terms of subsection 30(3) of the ACT and any outstanding accruals and benefits due to MEMBERS but not yet paid) and the balances in  the Accounts determined. Such balances shall be applied in accordance with the provisions of Rule B 3.2.3.


B 3.2.3        Each MEMBER'S equitable share of the balances in any FUND accounts  shall  be  determined  and  shall  be  dealt  with  by  the LIQUIDATOR  in the following  manner:


B if the  retirement  benefit  is payable  in the form  of an annuity in terms of Rule A 4.3.1:
(i) annuities already fully purchased from an INSURER shall continue to be paid by such INSURER directly to the respective annuitants;
 (ii) the amount available for a person prospectively entitled to an annuity shall be used to purchase a deferred annuity for him from an INSURER,


B if a person to whom a cash amount is payable cannot be traced, the LIQUIDATOR shall, subject to legal requirements, transfer the amount into an APPROVED UNCLAIMED BENEFIT PROVIDENT PRESERVATION FUND;


B the amount of every other MEMBER'S interest shall, with the agreement of the LIQUIDATOR, be transferred to an APPROVED PROVIDENT FUND, APPROVED PENSION FUND, APPROVED RETIREMENT ANNUITY FUND or APPROVED PRESERVATION PROVIDENT FUND for his benefit or paid to him in cash.


B 3.2.4 A MEMBER'S total benefit  in terms of Rules B 3.2.3 shall be subject to a minimum of the MEMBER'S SHARE.


B 3.2.5 The EMPLOYER and the MEMBERS in its employ shall cease to be an EMPLOYER and MEMBERS with effect from the date on which all the payments in terms of Rule B 3.2.3 have been effected.


B 3.3        BOARD OF TRUSTEES' right to dissolve the FUND


The BOARD OF TRUSTEES may, on giving written notice to the EMPLOYERS and the ADMINISTRATOR,  dissolve the FUND. In this event Rules  B  or  B  3.2,  as  shall be  decided by  the  BOARD  OF TRUSTEES, shall apply.


B 3.4        Powers of the BOARD OF TRUSTEES and the PRINCIPAL OFFICER after dissolution


If the FUND is liquidated, the offices of the BOARD OF TRUSTEES and the PRINCIPAL OFFICER shall automatically  be dissolved. The LIQUIDATOR appointed in terms of Rule B 3.2.1 will settle all matters in connection with the dissolution as if the LIQUIDATOR were the BOARD OF TRUSTEES.