Postal Services Act, 1998
R 385
Pension Funds Act (Act 24 of 1956)Board NoticesDirective PF No. 3 : Surplus Apportionment Schemes and Nil Returns (Sections 15B, 15E, 15F, 15J and 15K)Section III : Information Required and Documents that Constitute a Submission in terms of Sections other than Section 15B |
SECTION 15E
| (1) | Section 15E creates the right to transfer moneys between the employer surplus accounts of two funds in which the same employer participates. Where a transfer is to be effected in terms of section 15E(2), the following must be completed: |
| • | Forms E, E1 and E2. |
| (2) | A fee is payable in terms of Schedule L. |
SECTION 15F
| (3) | Form F sets out the forms to be completed for transfer of an amount from a reserve account to the employer surplus account in terms of section 15F. |
| (4) | A fee is payable in terms of Schedule L. |
SECTION 15J
| (5) | This section of the Directive attempts to provide clarity on the prescribed manner required by the Registrar for an application in terms of section 15J of the Act. This applies only to funds with a single participating employer. Where a fund has more than one participating employer, the proposed course of action should first be discussed with the Registrar's Office. |
| (6) | The applicant in a section 15J application must submit: |
| (6.1) | Proof of negotiations in terms of section 189 of the LRA; |
| (6.2) | Certification by an auditor that there is a need for retrenchment |
| (6.3) | Proof of full disclosure to members of: |
| (6.3.1) | the current financial position of the fund; |
| (6.3.2) | the proposed distribution to the employer; |
| (6.3.3) | the need of the employer for additional capital in order to maintain employment; |
| (6.3.4) | the report of the auditor; and |
| (6.3.5) | such information as the members may require in order to exercise their rights under the LRA |
Such proof must detail when, where and how such disclosures were made.
(6.4) Proof that members had reasonable opportunity to consider the proposal.
Factors influencing what would constitute sufficient opportunity would include the number of members of the fund, the geographical distribution of the members (centralised operation vs multiplicity of branch operations), the level of sophistication of the workforce, etc.
| (6.5) | Proof that at least 75 per cent of the fund members currently employed by the employer, have approved the proposal in writing. |
| (6.6) | Proof that negotiations in terms of section 189 of the LRA have confirmed the need to retrench more than 10 per cent of the membership of the fund at the previous financial year-end if the payment is not made. |
| (7) | The Registrar does not anticipate that many applications of this nature will be received, and at the same time realises that section 15J can only effectively be used to prevent job losses if every effort is made to deal with each such an application on a relatively speedy basis. Close liaison with the Registrar's Office, combined with short turnaround times by all parties, will therefore be essential. |
(8) For an application in terms of section 15J, the following forms must be completed:
| • | Form J |
| • | FormJ1 |
| • | Form J2 |
Yours sincerely
J A Boyd
Registrar of Pension Funds
