ALTRON GROUP PENSION FUND€¦ · 1.1 A fund known as the Altron Group Pension Fund was established...

ALTRON GROUP PENSION FUND

ALTRON GROUP PENSION FUND

2015

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1. GENERAL

1.1 A fund known as the Altron Group Pension Fund was established

with effect from 1 January 1959.

With effect from 1 September 1996 (hereafter referred to as the

CONVERSION DATE), the FUND converted from a defined benefit

arrangement to a defined contribution arrangement.

1.2 The registered office of the FUND is at 5 Winchester Road,

Parktown, 2193.

1.3 The object of the FUND is, in terms of these RULES, to provide

retirement and other benefits for employees and former

employees of the EMPLOYERS, and benefits in the event of their

death.

1.4 The FUND is a separate legal entity, distinct from its MEMBERS

and shall be capable in law in its own name of suing and of being

sued and of acquiring, holding and alienating property, movable

and immovable.

1.5 These RULES include all amendments up to and including the

“EFFECTIVE DATE”.

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2. DEFINITIONS

In these RULES words defined in the ACT and not in the RULES shall have

the meanings assigned to them in the ACT and, unless inconsistent with the

context, all words and expressions signifying the singular shall include the

plural and vice versa, words and expressions implying the masculine gender

shall include the feminine, and the following words and expressions shall

have the following meanings:

"ACT" shall mean the Pension Funds Act, 1956, as amended, and the

regulations made in terms of that ACT.

"ACTUARY" shall mean the ACTUARY appointed in terms of these RULES.

"ADMINISTRATORS" shall mean the ADMINISTRATORS appointed in terms

of these RULES and approved by the REGISTRAR in terms of Section 13B of

the ACT.

“ANNUAL GENERAL MEETING” shall mean the annual meeting of

MEMBERS and PENSIONERS referred to in Rule 12.6 (meeting of

MEMBERS).

"APPROVED PENSION FUND" shall mean a pension fund approved as such

by the REVENUE AUTHORITIES for the purposes of these RULES.

"APPROVED PROVIDENT FUND" shall mean a provident fund approved as

such by the REVENUE AUTHORITIES for the purposes of these RULES.

"APPROVED RETIREMENT ANNUITY FUND" shall mean a retirement

annuity fund approved as such by the REVENUE AUTHORITIES for the

purposes of these RULES.

"AUDITOR" shall mean the AUDITOR appointed in terms of these RULES.

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“BENEFICIARY” shall mean any person who is entitled to benefits in terms of

these RULES.

“BENEFIT DATE” shall mean the effective date on which the

ADMINISTRATORS, acting in terms of the agreed practice of the FUND,

calculate the MEMBER’S benefit on the MEMBER’S retirement, death or his

leaving SERVICE in terms of Rule 7 (withdrawal from SERVICE) or in order

to transfer the MEMBER’S benefit from the FUND in any of the circumstances

contemplated in these RULES. This is the last date on which a MEMBER is

entitled to benefits in the FUND other than interest on a benefit still to be

paid.

“CATEGORY 1 MEMBER” shall mean a MEMBER in respect of whom in

terms of the conditions of employment applicable to his remuneration

package, the EMPLOYER contributes at the rate referred to in Rule 4.2.1(a)

(EMPLOYER contributions).

“CATEGORY 2 MEMBER” shall mean a MEMBER, including a DEFINED

BENEFIT ENTITLED MEMBER, in respect of whom in terms of the

conditions of employment applicable to his remuneration package, the

EMPLOYER contributes at the rate referred to in Rule 4.2.1(b)





EMPLOYER contributes at the rate referred to in Rule 4.2.1(c)





EMPLOYER contributes at the rate referred to in Rule 4.2.1(d)


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EMPLOYER contributes at the rate referred to in Rule 4.2.1(e)





EMPLOYER contributes at the rate referred to in Rule 4.2.1(f) (EMPLOYER

contributions).

“CATEGORY 7 MEMBER” shall mean an ELIGIBLE EMPLOYEE who is

paid weekly by an EMPLOYER.

“CATEGORY 8 MEMBER” shall mean a MEMBER who joins the FUND due

to the sale of his employer to the PRINCIPAL EMPLOYER or as a condition

of a transfer of business in terms of Section 197 of the Labour Relations

Act, (Act No.66 of 1995) and in respect of whom, in terms of the conditions

of employment applicable to his remuneration package, the EMPLOYER

contributes at the rate referred to in Rule 4.2.1(h) (EMPLOYER

contributions).

“CATEGORY 9 MEMBER” shall mean a MEMBER who joins the FUND due

to the sale of his employer to the PRINCIPAL EMPLOYER or as a condition

of a transfer of business in terms of Section 197 of the Labour Relations

Act, (Act No.66 of 1995) and in respect of whom, in terms of the conditions

of employment applicable to his remuneration package, the EMPLOYER

contributes at the rate referred to in Rule 4.2.1(i) (EMPLOYER

contributions).

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“CONVERSION DATE” shall mean 1 September 1996, with effect from which

date the funding method as described in the RULES in force prior to such

date changed from defined benefit to defined contribution.

“DEFINED BENEFIT DEFERRED PENSIONER” shall mean either:

(a) a person who became entitled to a deferred PENSION in terms of

the OLD RULES, the applicable provisions of which are set out in

Appendix 3; or

(b) a DEFINED BENEFIT ENTITLED MEMBER who elects the option

to become a DEFINED BENEFIT DEFERRED PENSIONER in

terms of Rule 7.3.

“DEFINED BENEFIT ENTITLED MEMBER” shall mean a MEMBER who

was a MEMBER of the FUND immediately prior to the CONVERSION

DATE, whose membership of the FUND has been uninterrupted since the

CONVERSION DATE and who is entitled to elect benefits in terms of

Appendix 1.

(The relevant provisions of the OLD RULES of the FUND are contained in

Appendix 3 to these RULES).

“DEFINED CONTRIBUTION DEFERRED PENSIONER” shall mean a person

who joined the FUND before 1 March 2002, has at least 10 years’ SERVICE

and elects to preserve the benefit payable to him in terms of Rule 7.1 (fund

credit payable on withdrawal) in the FUND.

“DEPENDANT” shall mean a DEPENDANT as defined in terms of the ACT.

“DISABILITY ARRANGEMENT” shall mean a separate group disability

income scheme which provides benefits for employees who are MEMBERS

in the event of their disablement, in terms of a policy issued by a

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REGISTERED INSURER to the EMPLOYER (Amd 4 - 2015)

“EFFECTIVE DATE” shall mean the date on which these revised RULES are

registered by the REGISTRAR.

"ELIGIBLE EMPLOYEE" shall mean an employee, including a full-time

working director, who

(a) is employed on the permanent staff of the EMPLOYER and has not

reached NORMAL RETIREMENT DATE;

(b) is not a member of a fund providing retirement benefits which was

set up in terms of an agreement under the Labour Relations Act,

1956 or in terms of a collective agreement concluded in council in

terms of the Labour Relations Act (Act No. 66 of 1995); and

(c) has not elected to join the Altron Provident Fund or any other

APPROVED PROVIDENT FUND or APPROVED PENSION FUND

to which his EMPLOYER belongs.

"EMPLOYER" shall mean the PRINCIPAL EMPLOYER and such of its

subsidiary companies as may be admitted to the FUND from time to time with

the consent of the PRINCIPAL EMPLOYER; provided that, where applicable

in the RULES, the definition "EMPLOYER" shall include a division of that

EMPLOYER.

If the business of an EMPLOYER is wound up for the purpose of

reconstruction in a similar or amended form, the reconstructed organisation

shall (subject to the approval of the PRINCIPAL EMPLOYER in the case of

an EMPLOYER other than the PRINCIPAL EMPLOYER) take the place of

that EMPLOYER and the term "EMPLOYER" in such case shall then mean

the EMPLOYER as reconstructed.

In relation to any particular employee or MEMBER "EMPLOYER" shall mean

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the EMPLOYER by whom that person is, or was last, employed.

“EXPECTED PENSION” shall mean in relation to an OLD DEATH BENEFIT

MEMBER at any particular time, the PENSION to which such MEMBER

would have been entitled in terms of the OLD RULES if he had remained in

the SERVICE of the EMPLOYER until his NORMAL RETIREMENT DATE

and his Pensionable Emoluments (as defined in Appendix 3) had remained

unchanged .

"FINANCIAL YEAR" shall mean each 12 month period ending on

31 December.

“FREE COVER LIMIT” shall mean that part of the INSURED DEATH

BENEFIT that is not subject to any restriction or limitation imposed by the

TRUSTEES or by a REGISTERED INSURER. The amount of the FREE

COVER LIMIT shall be determined by the TRUSTEES from time to time.

(Amd 1 - 2012)

“FULL TIME STUDENT” shall mean a QUALIFYING CHILD who

(a) is between age 18 and age 25;

(b) is registered as a student at a recognised secondary or tertiary

educational institution; and

(c) is registered so as to be able to complete his course of study within

the minimum period prescribed by the institution referred to in (b);

provided that the QUALIFYING CHILD is required at the commencement of

each semester of each academic year to provide proof of attendance at such

institution and of satisfactory progress with their course of study. If such

evidence is not provided, the TRUSTEES reserve the right to suspend or stop

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the PENSION to the QUALIFYING CHILD.

"FUND" shall mean the ALTRON GROUP PENSION FUND.

"FUND CREDIT" shall mean for each MEMBER at any particular date the

sum of:

(a) if applicable, the value of each MEMBER’S actuarial reserve

calculated by the ACTUARY as at the CONVERSION DATE;

(b) the accumulated value of

(i) the contributions made after the CONVERSION DATE by

the MEMBER in terms of Rule 4.1.1 (fixed contributions

by MEMBERS) and if applicable, Rule 4.1.2 (additional

voluntary contributions by MEMBERS);

and

(ii) that part of the EMPLOYER’S contributions made after

the CONVERSION DATE in respect of MEMBERS in

terms of Rule 4.2.1 (fixed contributions by the

EMPLOYER) which is required to be applied towards

retirement funding in terms of Rule 4.2.2 (c) (application

of the EMPLOYER’S contributions); (Amd 4 - 2015)

(c) if applicable, any contributions allocated to the FUND CREDIT prior

to 1 September 2012 to be applied towards retirement funding due

to an election made prior to 1 September 2012 in terms of Rule

4.2.3 (a) (option to elect additional contributions towards retirement

funding instead of death benefits); (Amd 1 - 2012);

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(d) any amounts transferred in terms of Rule 9.1 (transfers from other

retirement funds);

(e) any amounts transferred from the Risk Reserve in terms of

Rule 4.4.3 (b) (v) (provision for amounts in the Risk Reserve to be

transferred to FUND CREDITS) or from the Member Surplus

Reserve in terms of Rule 4.4.5 (b) (i) (provision for amounts in the

Member Surplus Reserve to be used for any purpose contemplated

in the Pension Funds Act);

(f) any amount credited in terms of Rule 18 (a); (provision for amounts

arising from settlement payments to be credited to MEMBERS)

less:

(i) any amount deducted in terms of Rule 11.4 (deduction in terms of a

divorce order); and/or

(ii) If applicable, any amount payable to a financial institution if a

MEMBER defaults on repayment of a housing loan, where the

TRUSTEES have furnished a guarantee in respect of a loan by

such financial institution in terms of Section 19 (5)(a) of the ACT;

increased or decreased by the INVESTMENT RETURN until the BENEFIT

DATE.

“INSURED DEATH BENEFIT” shall mean in relation to each MEMBER during

any particular FINANCIAL YEAR, the multiple of his PENSIONABLE VALUE

at the date of his death contemplated in Rule 6.1.2 (a) (risk death benefit).

(Amd 1 - 2012)

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“INVESTMENT RETURN” shall mean any income (received or accrued)

including, if applicable, interest payable by the EMPLOYER in terms of

Rule 4.3 (interest payable in terms of Section 13A of the ACT), and capital

gains and losses (realised and unrealised) of the FUND, less an allowance for

any tax and such expenses (paid or accrued) as may be determined by the

TRUSTEES; provided that

(a) such INVESTMENT RETURN may be positive or negative;

(b) the INVESTMENT RETURN shall be allocated on such equitable

basis as the TRUSTEES in consultation with the ACTUARY,

subject to the requirements of the REGISTRAR and in accordance

with the agreed practice of the FUND may determine from time to

time; provided that in determining the INVESTMENT RETURN, the

TRUSTEES shall take into consideration the impact of any

miscellaneous mismatches which arise in the administration of the

FUND; and

(c) where a MEMBER’S FUND CREDIT is, and/or contributions paid by

or in respect of a MEMBER are, invested in a selected portfolio or

portfolios, the INVESTMENT RETURN relating to such MEMBER’S

investment within each portfolio shall be allocated to such

MEMBER’S benefit within the portfolio.

“MEDICAL UNDERWRITING” shall mean, for the purposes of Rule 3.4

(evidence of health to be provided on joining the FUND) a full assessment

of the MEMBER’S state of health, including such medical examinations,

blood tests and other tests as may be required by the independent medical

consultants appointed by the TRUSTEES. The cost of MEDICAL

UNDERWRITING shall be met by the FUND.

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"MEMBER" shall mean an ELIGIBLE EMPLOYEE, a PENSIONER, or a

person qualifying for a disability benefit in terms of the provisions of the

DISABILITY ARRANGEMENT who, having been previously admitted to

membership of the FUND in accordance with these RULES, has not ceased

to be a MEMBER in terms of these RULES.

“MINIMUM EARLY RETIREMENT DATE” shall mean the last day of the

month in which a MEMBER reaches age 55 years.

"NORMAL RETIREMENT DATE" shall mean the last day of the month in

which a MEMBER reaches age 63 years; provided that:

(a) NORMAL RETIREMENT DATE shall be the last day of the month in

which he reaches age 65 years in the case of a MEMBER who was

a MEMBER immediately before the CONVERSION DATE and

whose NORMAL RETIREMENT DATE was age 65 years in terms

of the RULES which applied immediately prior to that date;

(b) in the case of a MEMBER who transferred from either the Bidcorp

Group Pension Fund, the Bidcorp Group Provident Fund or the

Rennies Group Provident Fund on 1 October 2008, NORMAL

RETIREMENT DATE shall mean the last day of the month on which

such MEMBER reaches age 65 years; and

(c) the PRINCIPAL EMPLOYER may in individual cases agree with the

MEMBER an earlier NORMAL RETIREMENT DATE; provided this

shall not be less than age 60 years.

(d) in the case of a MEMBER who transferred from Unisys Africa

Pension Fund on 1 March 2013, NORMAL RETIREMENT DATE

shall mean the last day of the month on which such MEMBER

reaches age 65 years. (Amd 2 - 2013)

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“OLD DEATH BENEFIT MEMBER” shall mean a MEMBER who was a

MEMBER of the FUND as at 31 May 1999, whose period of membership of

the FUND has been uninterrupted since 31 May 1999 and who did not elect

on any subsequent election date decided by the TRUSTEES from time to

time, that benefits payable on his death in SERVICE be determined in

accordance with the provisions of Rule 6.1.2 (benefits payable on death in

SERVICE of a MEMBER who is not an OLD DEATH BENEFIT MEMBER).

(Amd 1 - 2012)

“OLD RULES” shall mean the RULES of the FUND as they applied

immediately prior to the CONVERSION DATE.

(Extracts from the OLD RULES are set out in Appendix 3 to these RULES).

“PAID-UP BENEFIT” shall mean the benefit retained in the FUND in respect

of a DEFINED CONTRIBUTION DEFERRED PENSIONER in terms of

Rule 7.4.1 (a) (retention in the FUND of the benefit payable to a DEFINED

CONTRIBUTION DEFERRED PENSIONER) increased or decreased by the

INVESTMENT RETURN of the FUND until the BENEFIT DATE.

“PENSION” shall mean either:

(a) the annuity or annuities purchased from a REGISTERED

INSURER in accordance with the provisions of Rule 5.3.2

(provisions governing outsourcing of PENSIONS to a

REGISTERED INSURER) or Rule 6.6.2 (provisions applicable to

purchase of a BENEFICIARY’S PENSION from a REGISTERED

INSURER); (Amd 3 - 2014)

(b) the monthly PENSION paid from the FUND in terms of these

RULES for the lifetime of the BENEFICIARY, or in the case of a

QUALIFYING CHILD for the period until he ceases to qualify as

such.

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“PENSIONABLE VALUE” shall mean, subject to (d) below, a percentage, as

agreed between the MEMBER and the EMPLOYER in terms of the

MEMBER’S conditions of appointment, of the MEMBER’S TOTAL COST OF

EMPLOYMENT; provided that:

(a) subject to the provisions of (b) (i) and (b) (ii) below, the minimum

percentage of PENSIONABLE VALUE which shall apply, shall be

70 per cent of the MEMBER’S TOTAL COST OF EMPLOYMENT

and the maximum percentage of PENSIONABLE VALUE which

shall apply shall be 100 per cent of the MEMBER’S TOTAL COST

OF EMPLOYMENT,

(b) the MEMBER and the EMPLOYER must agree, on the

REMUNERATION CONVERSION DATE, or when the MEMBER

enters SERVICE, as applicable, on which percentage is to apply;

provided further that;

(i) in the case of a MEMBER in SERVICE on the

REMUNERATION CONVERSION DATE, the percentage shall

be such percentage as may be determined by the

EMPLOYER at that date which may be lower than 70 per cent

of the MEMBER’S TOTAL COST OF EMPLOYMENT;

provided that in such case:

(aa) such MEMBER may retain a percentage lower than 70

per cent of TOTAL COST OF EMPLOYMENT but the

percentage may never be reduced to a percentage

lower than the percentage that applied on the day

immediately prior to the REMUNERATION

CONVERSION DATE;

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(bb) the total rate of contribution by the MEMBER and the

EMPLOYER in respect of him shall not be less than

the rate that applied on the day immediately prior to

the REMUNERATION CONVERSION DATE;

(ii) the percentage may be changed, by agreement between the

MEMBER and the EMPLOYER, on each 1 March and each

1 September and in the case of a MEMBER in SERVICE on

the REMUNERATION CONVERSION DATE the percentage

may be changed to a percentage lower than 70 per cent of the

MEMBER’S TOTAL COST OF EMPLOYMENT; provided that:

(aa) a MEMBER in SERVICE on the REMUNERATION

CONVERSION DATE shall not be permitted to reduce

the percentage to a percentage lower than the

percentage that applied on the day immediately prior

to the REMUNERATION CONVERSION DATE;

(bb) the total rate of contribution by the MEMBER and the

EMPLOYER in respect of him shall not be less than

the rate that applied on the day immediately prior to

the REMUNERATION CONVERSION DATE;

(iii) in the case of a MEMBER entitled to elect benefits in terms of

the OLD RULES, as contemplated in Appendix 1, any election

is subject to any restriction imposed in terms of his

employment conditions and to the provisions of Clause 5,

Clause 6 and Clause 7 of Appendix 1, as applicable;

(c) the provisions of Rule 8.2 (deemed service provisions applicable to

disabled MEMBERS) shall apply to the PENSIONABLE VALUE of a

MEMBER in receipt of a benefit from the separate DISABILITY

ARRANGEMENT;

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(d) in the case of a CATEGORY 7 MEMBER, his PENSIONABLE

VALUE shall be such MEMBER'S basic annual salary or wages, his

13th cheque unless otherwise agreed by the EMPLOYER and any

other regular amounts which are regarded as pensionable by the

TRUSTEES at the request of the EMPLOYER; provided further that

the provisions of (a) and (b) above shall not apply in the case of a

CATEGORY 7 MEMBER.

“PENSIONER” shall mean a person in receipt of a PENSION from the

FUND, provided that for the purposes of the definitions ‘QUALIFYING

CHILD’ and ‘QUALIFYING SPOUSE’ in Rule 2 and for the purposes of

Rule 6 in the main body of these RULES, PENSIONER shall not include a

PENSIONER as defined in Appendix 3.

“PENSION PRESERVATION FUND” shall mean a pension preservation fund

as defined in the Income Tax Act, 1962.

“PREVIOUS FUND” shall mean an APPROVED PROVIDENT FUND or

APPROVED PENSION FUND in which the EMPLOYER participates or in

which a previous employer who has been purchased by the PRINCIPAL

EMPLOYER participated and from which a MEMBER or a group of

MEMBERS transferred in accordance with the provisions of Section 14 of the

ACT.

“PRINCIPAL EMPLOYER” shall mean Allied Electronics Corporation Limited.

"PRINCIPAL OFFICER" shall mean the PRINCIPAL OFFICER of the FUND

appointed in accordance with these RULES.

“QUALIFYING CHILD” shall mean the child of an OLD DEATH BENEFIT

MEMBER or a PENSIONER who may include:

(a) a posthumous child; or

(b) a step-child, or illegitimate child, who, in the opinion of the

TRUSTEES, was dependent on the OLD DEATH BENEFIT

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MEMBER or the PENSIONER at the time of his death; or

(c) an adopted child on proof of adoption to the satisfaction of the

TRUSTEES;

provided that the child has not been married and –

(i) is under the age of 18 years; or

(ii) is under the age of 25 years and is a Full-Time Student; or

(iii) is, in the opinion of the TRUSTEES, permanently incapacitated by

reason of physical or mental infirmity from supporting himself;

and provided further that:

(aa) if the child of a PENSIONER who was a DEFINED

CONTRIBUTION DEFERRED PENSIONER, was a child as

specified above when the MEMBER left the SERVICE or was born

of a marriage subsisting when he left the SERVICE; or

(bb) if the child of a PENSIONER who was not a DEFINED

CONTRIBUTION DEFERRED PENSIONER, was a child as

specified above when the PENSIONER retired or was born of a

marriage subsisting when he retired;

"QUALIFYING SPOUSE" shall mean a person who at the date of the OLD

DEATH BENEFIT MEMBER’S death or the PENSIONER’S retirement was

either:

(a) the legal spouse of the OLD DEATH BENEFIT MEMBER or of the

PENSIONER; or

(b) the partner of the OLD DEATH BENEFIT MEMBER or of the

PENSIONER;

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(i) in a union according to customary law or in a union

recognised as a marriage under any religion; or

(ii) in a relationship where the partners who may be persons

of the same or the opposite sex, have cohabited for a

period and have shared a reciprocal duty of support;

provided that:

(aa) the OLD DEATH BENEFIT MEMBER or the PENSIONER, at or

before the date of his retirement, has notified the FUND of the

existence of such a QUALIFYING SPOUSE prior to the date upon

which a benefit becomes due from the FUND; and

(bb) the TRUSTEES may direct that more than one person may be

regarded as a QUALIFYING SPOUSE, in which case the total

benefit payable to such persons shall be equal to the benefit which

would have been payable to one QUALIFYING SPOUSE.

“REGISTERED INSURER" shall mean an insurer registered in terms of the

Long-Term Insurance Act, 1998.

"REGISTRAR" shall mean the REGISTRAR of Pension Funds referred to in

the ACT.

“REMUNERATION CONVERSION DATE” shall mean either 1 March 2007

or on such other date as may be decided on by the MEMBER and the

EMPLOYER, with effect from which the MEMBER’S remuneration package

was converted to TOTAL COST OF EMPLOYMENT.

"REVENUE AUTHORITIES" shall mean the South African Revenue Service.

"RULES" shall mean these RULES and such alterations as may at any time

be applicable.

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"SERVICE" shall mean employment with any of the EMPLOYERS and shall

include any period during which the MEMBER is deemed to remain in

SERVICE in terms of Rule 8 (temporary absence).

“SURPLUS APPORTIONMENT DATE” shall mean 31 December 2002.

“TOTAL COST OF EMPLOYMENT” shall mean the total annual cost of

employing the MEMBER as determined by the PRINCIPAL EMPLOYER from

time to time, including such other emoluments as may be agreed between the

MEMBER and the PRINCIPAL EMPLOYER.

"TRUSTEES" shall mean the TRUSTEES or their alternates appointed or

elected in terms of these RULES.

“WAGE EARNER” shall mean an ELIGIBLE EMPLOYEE who is paid

weekly by an EMPLOYER.

“UNAPPROVED RISK BENEFITS” shall mean such risk benefits, including

the DISABILITY ARRANGEMENT, which are provided under a separate

arrangement in terms of policies issued by a REGISTERED INSURER to the

EMPLOYER as may be advised by the EMPLOYER to the TRUSTEES.

(Amd 4 - 2015)

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3. MEMBERSHIP

3.1 Each person who was a MEMBER of the FUND immediately prior

to the “EFFECTIVE DATE” shall remain a MEMBER of the FUND.

3.2 Each employee who is not referred to in Rule 3.1(existing

MEMBERS must retain membership) must become a MEMBER of

the FUND as a condition of employment on the day on which he

becomes an ELIGIBLE EMPLOYEE; provided that the contributions

payable by and on behalf of a MEMBER in terms of Rule 4.1

(contributions by MEMBERS) and Rule 4.2 (contributions by

EMPLOYER) shall be a pro-rata amount should the ELIGIBLE

EMPLOYEE become a MEMBER of the FUND on a date other than

the first day of the month.

3.3 A MEMBER shall not be permitted to withdraw from membership

while he remains in SERVICE.

3.4 An ELIGIBLE EMPLOYEE who becomes a MEMBER in terms of

Rule 3.2 (compulsory membership requirements) and whose

potential level of cover provided by the INSURED DEATH BENEFIT

is above the FREE COVER LIMIT, shall produce such evidence as

to the state of his health as the TRUSTEES may require. The

following provisions shall apply:

(a) during the first three month period of his membership of

the FUND, until such time as MEDICAL

UNDERWRITING has been finalised by the medical

practitioners appointed by the TRUSTEES, the

INSURED DEATH BENEFIT shall be limited to one

hundred per cent of the total amount potentially payable,

or such lesser amount as may be decided by the

TRUSTEES having regard to the circumstances of any

particular case;

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(b) if, at the expiry of the three month period commencing

on the date on which he became a MEMBER, the

MEMBER has not undergone MEDICAL

UNDERWRITING, or has failed to submit the results of

MEDICAL UNDERWRITING to the TRUSTEES, he shall

not be covered for payment of that part of the INSURED

DEATH BENEFIT that is in excess of the FREE COVER

LIMIT until such time as MEDICAL UNDERWRITING

has been finalised;

(c) if, as a result of MEDICAL UNDERWRITING, the

MEMBER’S INSURED DEATH BENEFIT is subject to

restriction or limitation, the TRUSTEES have the right, in

consultation with a REGISTERED INSURER, if any,

with whom the benefit may be insured, to make payment

of that part of the INSURED DEATH BENEFIT that is in

excess of the FREE COVER LIMIT subject to such

restrictions and/or limitation as they may impose;

(d) the TRUSTEES must within a reasonable time notify the

MEMBER in writing of any restriction or limitation

imposed in terms of (c) above. (Amd 1 - 2012)

3.5 A MEMBER who has left SERVICE for any reason and has received

all the benefits which may be due to him in terms of these RULES

shall cease to be a MEMBER.

3.6 If a MEMBER transfers to another APPROVED PENSION FUND or

APPROVED PROVIDENT FUND in any of the circumstances

envisaged in these RULES and such transfer is subject to the

provisions of Section 14 of the ACT, then it is specifically provided

that with effect from the date on which he becomes a MEMBER of

such FUND, contributions in terms of Rule 4 (contributions) shall

cease and in the event of his death, prior to transfer of his benefit in

terms of these RULES from the FUND to such other FUND, no

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death benefit in Rule 6 (benefits payable on death) , other than the

MEMBER’S FUND CREDIT, shall be payable.

3.7 If a MEMBER leaves SERVICE and returns to SERVICE and

becomes an ELIGIBLE EMPLOYEE within 12 months thereafter

and before any benefit has been paid to him by the FUND, or if a

benefit has been paid to him and it is refunded to the FUND, he

shall become a MEMBER again as from the first day of the month

coincident with or next following his becoming an ELIGIBLE

EMPLOYEE and his FUND CREDIT shall be reinstated; provided

that:

(a) if he was a DEFINED BENEFIT ENTITLED MEMBER

prior to leaving SERVICE he shall cease to be a

DEFINED BENEFIT ENTITLED MEMBER;

(b) if he was an OLD DEATH BENEFIT MEMBER prior to

leaving SERVICE, the benefits payable on his death in

SERVICE shall be determined in accordance with the

provisions of Rule 6.1.2 (benefits payable on the death in

SERVICE of a MEMBER who is not an OLD DEATH

BENEFIT MEMBER).

3.8 It is specifically provided that:

(a) a MEMBER who becomes a MEMBER in terms of Rule

3.2 (compulsory membership requirements) after 1 June

2014 shall be required, on his retirement in terms of Rule

5.2 (rule dealing with circumstances of retirement), to

purchase his PENSION in his own name from a

REGISTERED INSURER in accordance with the

provisions of Rule 5.3.2 (provisions governing outsourcing

of PENSIONS to a REGISTERED INSURER) and that

- 22 -

the option to have all or part of his PENSION paid from

the FUND shall not be available to such MEMBER;

and

(b) any BENEFICIARY who becomes entitled to a

PENSION or annuity on the death in SERVICE of a

MEMBER referred to in (a) above shall also be required

to purchase such PENSION or annuity from a

REGISTERED INSURER in terms of Rule 6.6.2

(provisions applicable to purchase of a BENEFICIARY’S

PENSION from a REGISTERED INSURER).

(Amd 3 - 2014)

- 23 -

4. CONTRIBUTIONS AND ACCOUNTING STRUCTURE

4.1 Contributions by the MEMBER

4.1.1 Each MEMBER shall contribute at the applicable rate of

PENSIONABLE VALUE set out below:

(a) in the case of a CATEGORY 7 MEMBER and

a MEMBER in receipt of a benefit under the

DISABILITY ARRANGEMENT, at the rate of

7,5% of his PENSIONABLE VALUE;

(b) in the case of a MEMBER who is neither a

CATEGORY 7 MEMBER nor a MEMBER in

receipt of a benefit under the DISABILITY

ARRANGEMENT, at the rate of 5% of his

PENSIONABLE VALUE.

4.1.2 A MEMBER may make additional contributions to the

FUND, in order to secure greater benefits or in respect

of a period of past SERVICE, in accordance with such

conditions and procedures as the TRUSTEES may

prescribe from time to time. The payment of additional

contributions to the FUND shall be subject to the

limitations and requirements of the Income Tax Act,

1962. Such additional contributions shall be dealt with

as contemplated in Rule 4.1.4 (application of additional

voluntary contributions) and benefits payable in respect

thereof shall be additional to those otherwise provided

for in the RULES.

4.1.3 While a MEMBER is in receipt of benefits from the

DISABILITY ARRANGEMENT his contributions to the

FUND shall be deducted from the benefit paid from the

DISABILITY ARRANGEMENT.

- 24 -

4.1.4 Additional contribution made by the MEMBER in terms of

Rule 4.1.2 (additional contributions) and Clause 3 of

Appendix 1 (additional contributions made by DEFINED

BENEFIT ENTITLED MEMBERS) shall be increased or

decreased by the INVESTMENT RETURN until the

BENEFIT DATE and in the event of the MEMBER’S

retirement, the accumulated amount shall be used to

provide additional PENSION for the MEMBER of the

amount calculated by the ACTUARY to be secured

thereby. In the event of the MEMBER’S death or

termination of SERVICE before retirement, such

additional contributions, increased or decreased by the

INVESTMENT RETURN until the BENEFIT DATE shall

become payable as a death benefit in terms of Section

37C of the ACT or as a withdrawal benefit in terms of

Rule 7 (fund credit payable on withdrawal), as

appropriate.

4.2 Contributions by the EMPLOYER

4.2.1 Subject to the provisions of Section 15E (1) (a) of the ACT

and to clause (g) and proviso (v) below, the EMPLOYER

shall make monthly contributions to the FUND at the rate

of the MEMBER’S PENSIONABLE VALUE agreed

between the MEMBER and the EMPLOYER in

accordance with the scale below, less, for a MEMBER

referred to in Rule 4.2.8 (provisions applicable to

contributions of MEMBERS who retire after NORMAL

RETIREMENT DATE), the required contributions for that

month, which shall not exceed 2 per cent of the

MEMBER’S PENSIONABLE VALUE, towards the cost of

the MEMBER’S benefits under the separate DISABILITY

ARRANGEMENT: (Amd 4 - 2015)

- 25 -

(a) in the case of a CATEGORY 1 MEMBER, at the

rate of 10% of his PENSIONABLE VALUE;

(b) in the case of a CATEGORY 2 MEMBER, at the

rate of 12.5% of his PENSIONABLE VALUE;

(c) in the case of a CATEGORY 3 MEMBER, at the


(d) in the case of a CATEGORY 4 MEMBER, at the


(e) in the case of a CATEGORY 5 MEMBER, at the


(f) in the case of a CATEGORY 6 MEMBER, at the


(g) in the case of a CATEGORY 7 MEMBER,

provisos (i), (ii), (iii) and (iv) below shall not

apply and the EMPLOYER’S contribution rate

in respect of such MEMBER shall be 10% of

his PENSIONABLE VALUE;

(h) in the case of a CATEGORY 8 MEMBER,



in respect of such MEMBER shall be 5% of his

PENSIONABLE VALUE;

(i) in the case of a CATEGORY 9 MEMBER,



in respect of such MEMBER shall be 7.5% of

his PENSIONABLE VALUE;

- 26 -

provided that

(i) the rate of the EMPLOYER’S contributions in

terms of (a) (b) (c) (d) (e) and (f) of this Rule

shall be agreed between the MEMBER and

the EMPLOYER on the REMUNERATION

CONVERSION DATE, in accordance with a

restructuring of the MEMBER’S remuneration

package;

(ii) the MEMBER’S category of membership for

the purposes of this Rule must be advised by

the EMPLOYER to the TRUSTEES in writing;

(iii) the MEMBER and the EMPLOYER may agree

on each 1 March and each 1 September that

the MEMBER may change to a different

category of membership for the purposes of

this Rule, provided that:

(aa) any such change is notified by the

EMPLOYER to the TRUSTEES in

writing;

(bb) MEMBERS who are not CATEGORY

8 MEMBERS or CATEGORY 9

MEMBERS may not elect the rates

applicable to these categories;

(iv) each MEMBER, who is not a CATEGORY 7

MEMBER, a CATEGORY 8 MEMBER or a

CATEGORY 9 MEMBER, on entering

SERVICE shall agree with his EMPLOYER

which category of membership shall apply in

his case. If no such agreement is entered into,

the MEMBER shall be classified as a

CATEGORY 2 MEMBER;

- 27 -

(v) in the case of a MEMBER who is in receipt of

a benefit under the separate group disability

scheme, provisos (i), (ii), (iii) and (iv) above

shall not apply and irrespective of the rate of

contribution agreed on between the MEMBER

and the EMPLOYER in terms of this Rule prior

to the date on which a MEMBER became

entitled to a benefit under the separate group

disability scheme, the contributions in respect

of such MEMBER shall be made by the group

disability income benefit scheme to the FUND

at the rate of 10% of one-twelfth of the

MEMBER’S PENSIONABLE VALUE. (Amd 4 -

2015)

4.2.2 Out of the amount paid in terms of Rule 4.2.1 (total

contribution made by the EMPLOYER): (Amd 4 - 2015)

(a) an amount equal to 3 per cent of the MEMBER’S

PENSIONABLE VALUE shall be allocated to the Risk

Reserve to meet the cost of the INSURED DEATH

BENEFIT and the administration and incidental expenses

of the FUND; provided that:

(i) subject to the provisions of Rule 4.2.8

(provisions applicable to contributions of

MEMBERS who retire after NORMAL

RETIREMENT DATE), a maximum of 2 per

cent of the MEMBER’S PENSIONABLE VALUE

shall be allocated towards the cost of the

INSURED DEATH BENEFIT; and

(ii) 1 per cent of the MEMBER’S PENSIONABLE

- 28 -

VALUE shall be allocated towards the cost of

the administration and incidental expenses of

the FUND;

(b) the premiums due by the EMPLOYER to the

REGISTERED INSURER with whom the UNAPPROVED

RISK BENEFITS are insured, shall be paid to the

REGISTERED INSURER; provided that the part of the

premiums due by the EMPLOYER that is used to pay the

cost for the month towards the cost of the MEMBER’S

benefits under the separate DISABILITY

ARRANGEMENT shall not exceed 2 per cent of the

MEMBER’S PENSIONABLE VALUE;

and

(c) the balance shall be applied towards retirement funding

under the MEMBER’S FUND CREDIT.

4.2.3 Notwithstanding the provisions of Rule 4.2.2 (a) (i),

(maximum percentage of PENSIONABLE VALUE to be

applied toward the risk portion of the death benefit)

subject to giving three months’ notice to the TRUSTEES

at any time:

(a) a MEMBER may elect that only 1 per cent of his

PENSIONABLE VALUE shall be applied to provide a

reduced death benefit, in which case the balance of the 2

per cent of his PENSIONABLE VALUE shall be applied

under his FUND CREDIT; and

(b) a MEMBER who had made an election in terms of (a)

may elect that the entire contribution rate of 2 per cent of

his PENSIONABLE VALUE be applied to provide an

- 29 -

increased death benefit, subject to the approval of the

TRUSTEES and after providing them with such evidence

of good health as they may require;

provided that the provisions of this Rule shall not apply after 31

August 2012; (Amd 1 - 2012)

4.2.4 If the amount referred to in Rule 4.2.2 (a) (percentage of

EMPLOYER’S contributions to be applied towards risk

benefits and expenses) is not sufficient to meet the cost of

the INSURED DEATH BENEFIT and the FUND’S regular

and incidental expenses, the TRUSTEES, on the advice

of the ACTUARY, may either:

(a) use the assets in the Risk Reserve to make up

the shortfall; or

(b) reduce the INSURED DEATH BENEFIT to the

level that can be afforded by the contribution.

4.2.5 In the case of a MEMBER who is in receipt of a benefit

from the DISABILITY ARRANGEMENT, contributions

shall continue to be paid to the FUND in respect of him by

the DISABILITY ARRANGEMENT.

4.2.6 Furthermore, the EMPLOYER shall contribute such

amounts as determined by the TRUSTEES from time to

time, as may be necessary to provide for a shortfall in

assets in the Guarantee Reserve or in the Pensions

Account.

- 30 -

4.2.7 The EMPLOYER may also make contributions to the

Employer Surplus Reserve from time to time in order to

improve benefits payable to MEMBERS.

4.2.8 Notwithstanding the provisions of Rule 4.2.2(a)(i)

(maximum percentage of PENSIONABLE VALUE to be

applied towards the cost of the risk death benefit), in the

case of a MEMBER who in terms of Rule 5.2.4 (rule

permitting late retirement) is allowed to remain in

SERVICE after his NORMAL RETIREMENT DATE and

who is also not a DEFINED BENEFIT ENTITLED

MEMBER who elects benefits in terms of Appendix 1 in

accordance with Rule 5.2.5 (rule requiring a DEFINED

BENEFIT ENTITLED MEMBER who remains in

SERVICE after NORMAL RETIREMENT DATE to elect

benefits in terms of Appendix 1 on reaching his

NORMAL RETIREMENT DATE) those contributions

which in terms of Rule 4.2.2 (a) (i) would have been

applied towards the cost of the INSURED DEATH

BENEFIT and that part of the premiums that would have

been paid by the EMPLOYER to a REGISTERED

INSURER towards the cost of the UNAPPROVED RISK

BENEFITS in terms of Rule 4.2.2 (b) (premiums paid

towards the cost of the UNAPPROVED RISK BENEFITS)

shall instead be applied towards retirement funding under

his FUND CREDIT in terms of Rule 4.2.2 (c) (application

of the EMPLOYER’S contributions towards retirement

funding). (Amd 4 - 2015)

4.2.9 It is specifically provided that the terms and conditions

applicable to the premiums referred to in Rule 4.2.2 (b)

(premiums paid towards the cost of the UNAPPROVED

RISK BENEFITS) and the payment of the

- 31 -

UNAPPROVED RISK BENEFITS are set out in the policy

issued by the REGISTERED INSURER with whom such

benefits have been insured. Accordingly the FUND is not

liable for payment of any UNAPPROVED RISK

BENEFITS. (Amd 4 - 2015)

4.3 Contributions Paid to the FUND

The EMPLOYER shall deduct the MEMBERS’ contributions in

terms of Rule 4.1 (contributions by MEMBERS) from the

MEMBERS’ TOTAL COST OF EMPLOYMENT at the end of each

pay-period. The first deduction shall be that at the end of the pay-

period during which the MEMBER became a MEMBER in terms of

the RULES. These contributions and the EMPLOYER’S

contributions in terms of Rule 4.2 (contributions by EMPLOYER)

shall be paid over to the FUND on the last day of the calendar

month to which such contributions relate, subject to the provisions

of Section 13A of the ACT. If contributions are not paid to the

FUND by the last day of the calendar month to which the

contributions relate, the EMPLOYER shall be required to pay such

penalties and late payment interest as may be determined by the

TRUSTEES from time to time; provided that the rate of late

payment interest shall not be less than the rate prescribed in the

ACT. Any such interest shall be included in the INVESTMENT

RETURN.

4.4 Accounting Structure

4.4.1 Pensions Account

The purpose of the Pensions Account is to provide

- 32 -

monthly pension payments to PENSIONERS and to

DEFINED BENEFIT DEFERRED PENSIONERS when

they retire. The Pensions Account represents the

actuarial present value of benefits to current

PENSIONERS, DEFINED BENEFIT DEFERRED

PENSIONERS and their DEPENDANTS. The following

transactions shall be recorded in this account:

(a) Credits

(i) the opening balance calculated by

the ACTUARY as at the

CONVERSION DATE on a basis

approved by the TRUSTEES;

(ii) in the case of a retiring MEMBER

who elects in terms of the option in

Rule 5.3.1 (b), (option to elect

payment of PENSION from the

FUND) or Rule 5.3.1 (c) (option to

elect payment of part of the

retirement PENSION from the FUND

and part from a REGISTERED

INSURER) that his PENSION, or part

of his PENSION, be paid from the

FUND, the amount referred to in

Rule 5.3.1 (b) (ii) or Rule 5.3.1 (c) (ii)

(bb) (value of MEMBER’S FUND

CREDIT after commutation);

(iii) transfers from the Data Reserve in

respect of any data errors as

- 33 -

calculated by the ACTUARY on a

basis approved by the TRUSTEES;

(iv) transfers from the Guarantee

Reserve in respect of a retiring

MEMBER who elects to receive

benefits in terms of the OLD RULES

and whose FUND CREDIT, as

determined by the ACTUARY, is not

sufficient to meet the cost of the

benefit in terms of the OLD RULES;

(v) transfers of amounts in respect of

DEFINED BENEFIT DEFERRED

PENSIONERS in terms of the

RULES;

(vi) amounts determined by the

ACTUARY, payable by the

EMPLOYER in terms of Rule 4.2.6

(requirement EMPLOYER

contributes additional amounts

needed to make good a shortfall) to

make good any shortfall in the

Pensions Account;

(vii) transfers from the Risk Reserve of

the amount required to pay death

benefits in terms of the OLD RULES

in respect of an OLD DEATH

BENEFIT MEMBER;

(viii) transfer of the FUND CREDITS of

- 34 -

MEMBERS who die in SERVICE and

where the annuity is paid to the

BENEFICIARY from the FUND in

terms of 6.6.1 (payment of the

PENSION to a BENEFICIARY,

QUALIFYING SPOUSE or

QUALIFYING CHILD);

(ix) transfers from any of the other

reserve accounts referred to in this

Rule 4.4, in accordance with the

provisions of Rule 13.5.4 (general

provision for the TRUSTEES to make

transfers between the reserve

accounts).

(b) Debits

(i) PENSIONS and lump sums payable

to BENEFICIARIES in terms of the

RULES;

(ii) the cash value of any positive

balance of the MEMBER’S FUND

CREDIT, less the total payments

made, as contemplated in Rule 6.3

(d) (payment to DEPENDANTS in

terms of Section 37C of the ACT of

any balance of FUND CREDIT after

all payments to the PENSIONER, his

spouse and any children have been

made);

- 35 -

(iii) transfers to the Data Reserve in

respect of any data errors as

calculated by the ACTUARY on a

basis approved by the TRUSTEES:

(iv) payments in accordance with the

provisions of Rule 7.3 (b) (ii)

(deferred pensions payable to

DEFINED BENEFIT DEFERRED

PENSIONERS in accordance with

the provisions of the OLD RULES) in

respect of a DEFINED BENEFIT

DEFERRED PENSIONER on his

death before retirement;

(v) amounts transferred to the Employer

Surplus Reserve in the event of an

actuarial surplus in the Pensions

Account, the amount of which shall

be calculated by the ACTUARY and

approved by the TRUSTEES;

(vi) transfers to any of the other reserve

accounts referred to in this Rule 4.4,

in accordance with the provisions of

Rule 13.5.4 (general provision for the

TRUSTEES to make transfers

between the reserve accounts).

(c) The amount standing to the credit of the

Pensions Account shall be increased or

- 36 -

decreased by the INVESTMENT RETURN on

the assets in this account.

4.4.2 Guarantee Reserve

The purpose of the Guarantee Reserve is to provide for

the additional cost of benefits to which a MEMBER may

become entitled should he elect to receive benefits in

terms of the OLD RULES in accordance with the

provisions of Appendix 1. The amount required in the

Guarantee Reserve shall be determined by the

ACTUARY on a basis approved by the TRUSTEES. The

following transactions shall be recorded in the Guarantee

Reserve :

(a) Credits

(i) the opening balance calculated by the

ACTUARY as at the CONVERSION

DATE on a basis approved by the

TRUSTEES;

(ii) contributions by the EMPLOYER in

terms of Rule 4.2.6 (requirement

EMPLOYER contributes additional

amounts needed to make good a

shortfall) in the event of a shortfall of

assets;

(iii) amounts transferred from other reserves

in the event of a shortfall to meet

accrued liabilities, the amount of which

- 37 -

shall be calculated by the ACTUARY

and approved by the TRUSTEES;

(iv) transfer of any positive balance of the

MEMBER’S FUND CREDIT on

retirement if a DEFINED BENEFIT

ENTITLED MEMBER elects benefits in

terms of the OLD RULES as

contemplated in Appendix 1;

(v) transfers from the Employer Surplus

Reserve in terms of Rule 4.4.4 (b) (i)

(transfers to the Guarantee Reserve

debited to the Employer Surplus

Reserve).

(vi) transfers from any of the other

reserve accounts referred to in this

Rule 4.4, in accordance with the

provisions of Rule 13.5.4 (general

provision for the TRUSTEES to make

transfers between the reserve

accounts).

(b) Debits

(i) any amount required, as determined by

the ACTUARY taking into account the

need to stabilize the funding level to a

level considered prudent by the

ACTUARY, to pay retirement benefits in

terms of the OLD RULES as

contemplated in terms of Appendix 1 to

- 38 -

a DEFINED BENEFIT ENTITLED

MEMBER who elects such benefits;

(ii) ad hoc transfers to the Pensions

Account in terms of Rule 4.4.1(a)(iv)

(transfers from the Guarantee Reserve

credited to the Pensions Account) in the

event of a shortfall in respect of a

retiring DEFINED BENEFIT ENTITLED

MEMBER;

(iii) transfers to the Employer Surplus

Reserve of amounts determined by the

ACTUARY and approved by the

TRUSTEES, in the event of an actuarial

surplus in the Guarantee Reserve.

(iv) transfers to any of the other reserve

accounts referred to in this Rule 4.4,

in accordance with the provisions of


TRUSTEES to make transfers

between the reserve accounts).


Guarantee Reserve shall be increased or



4.4.3 Risk Reserve

The primary purpose of the Risk Reserve is to provide

for future death benefit payments in excess of those

covered by the deceased MEMBER'S FUND CREDIT.

- 39 -

The Risk Reserve is also intended to meet expenses

related to management and administration of the FUND.

In addition it may be used to meet other adverse

contingencies:

(a) Credits

(i) the opening balance determined by the

TRUSTEES after consultation with the

ACTUARY as at the CONVERSION

DATE;

(ii) the EMPLOYER’S contributions made

after the CONVERSION DATE in terms

of Rule 4.2.2 (a) (the EMPLOYER’S

contributions applied towards risk

benefits and administration costs);

(iii) any reinsurance payments made to the

FUND by a REGISTERED INSURER;

(iv) transfers from the MEMBER Surplus

Reserve in terms of Rule 4.4.5 (b) (i)

(transfers to the Risk Reserve debited to

the MEMBER Surplus Reserve).

(v) transfers from any of the other reserve

accounts referred to in this Rule 4.4, in

accordance with the provisions of


TRUSTEES to make transfers between

the reserve accounts).

- 40 -

(b) Debits

(i) if applicable, premiums payable to a

REGISTERED INSURER;

(ii) all costs and expenses referred to in

Rule 13.3; (expenses related to the

management and administration of the

FUND)

(iii) amounts transferred to the Pensions

Account in terms of Rule 4.4.1 (a) (vii)

(transfers from the Risk Reserve in

respect of amounts needed to pay death

benefits to OLD DEATH BENEFIT

MEMBERS reflected as credits in the

Pensions Account);

(iv) transfers to the MEMBER Surplus

Reserve in terms of Rule 4.4.5 (a) (ii)

(transfers from the Risk Reserve

reflected as credits in the MEMBER

Surplus Reserve);

(v) transfers to the MEMBERS’ FUND

CREDITS from time to time, if so

decided by the TRUSTEES on the

advice of the ACTUARY,

(vi) transfers to any of the other reserve


accordance with the provisions of Rule

13.5.4 (general provision for the


- 41 -


(c) The amount standing to the credit of the Risk

Reserve shall be increased or decreased by the

INVESTMENT RETURN on the assets in this

account.

4.4.4 EMPLOYER Surplus Reserve

The following transactions shall be recorded in the

EMPLOYER Surplus Reserve:

(a) Credits

(i) the amount, if any, apportioned to the

EMPLOYER in terms of a surplus

apportionment scheme approved by the

REGISTRAR in terms of Section 15B of

the ACT;

(ii) any amount which is required to be

transferred to such an account in terms

of an application made in accordance

with Section 15F of the ACT and

approved by the REGISTRAR;

(iii) transfers from the Guarantee Reserve in

terms of Rules 4.4.2 (b) (iii) (transfers of

any actuarial surplus);

(iv) transfers from the Pensions Account in

terms of Rule 4.4.1 (b) (v) (transfers of

any actuarial surplus from the Pensions

Account );

(v) contributions by the EMPLOYER as

contemplated in Rule 4.2.7 (provision for

- 42 -

the EMPLOYER to contribute to the

EMPLOYER Surplus Reserve from time

to time).

(vi) transfers from any of the other reserve






(b) Debits

(i) transfers to the Guarantee Reserve in

terms of Rule 4.4.2 (a) (v) (transfers

from the EMPLOYER Surplus Reserve

credited to the Guarantee Reserve) in

the event that there are insufficient

assets in the Guarantee Reserve, on the

advice of the ACTUARY;

(ii) amounts used by the EMPLOYER in the

manner and for any of the purposes set

out in the ACT, including the purpose

contemplated in Section 15E (1) (a) of

the ACT.

(iii) transfers to any of the other reserve







EMPLOYER Surplus Reserve shall be

- 43 -

increased or decreased by the INVESTMENT

RETURN on the assets in this account.

4.4.5 MEMBER Surplus Reserve

The following transactions shall be recorded in the

MEMBER Surplus Reserve:

(a) Credits

(i) any amount allocated in terms of

Section 15B of the ACT to be used for

the benefit of MEMBERS in terms of a

surplus apportionment scheme

approved by the REGISTRAR;

(ii) transfers from the Risk Reserve in terms

of Rule 4.4.3 (b) (iv) (transfers to the

MEMBER Surplus Reserve debited to

the Risk Reserve).

(iii) transfers from any of the other reserve






(b) Debits

(i) amounts used for any of the purposes

set out in the ACT, including transfers to

- 44 -

the Risk Reserve in terms of Rule 4.4.3

(a) (iv) (the Risk Reserve credited with

amounts transferred from the MEMBER

Surplus Reserve if needed);

(ii) transfers to any of the other reserve







MEMBER Surplus Reserve shall be increased

or decreased by the INVESTMENT RETURN on


4.4.6 Data Reserve Account

(a) A Data Reserve Account shall be maintained

under the FUND, to which shall be credited:

(i) any amounts which may arise as a result

of data or administrative errors;

(ii) amounts transferred from the Pensions

Account in terms of Rule 4.4.1 (b) (iii);

(transfers to the Data Reserve Account

from the Pensions Account).

(iii) transfers from any of the other reserve


- 45 -





(b) The Data Reserve Account shall be debited

with:

(i) amounts arising from data or

administrative errors;

(ii) transfers to the Pensions Account in

terms of Rule 4.4.1 (a) (iii).(transfers from

the Data Reserve credited to the

Pensions Account)

(iii) transfers to any of the other reserve






(c) The amount standing to the credit of the Data

Reserve Account shall be increased or



- 46 -

5. RETIREMENT BENEFITS

5.1 Amount of Benefit

The benefit payable to a MEMBER (who is not a DEFINED

BENEFIT ENTITLED MEMBER who elects benefits in terms of the

OLD RULES in accordance with the provisions of Appendix 1) on

his retirement shall be equal in value to his FUND CREDIT after the

exercise of any option in terms of Rule 5.4 (commutation). Such

benefit shall be paid to him as a PENSION in accordance with the

provisions of Rule 5.3 (payment of PENSION).

5.2 Retirement

5.2.1 A MEMBER who has reached the MINIMUM EARLY

RETIREMENT DATE, including a MEMBER who has

been dismissed from SERVICE, may retire at any time

before he reaches his NORMAL RETIREMENT DATE.

5.2.2 A MEMBER who has not retired in terms of Rule 5.2.1

(early retirement) must retire on reaching his NORMAL

RETIREMENT DATE, unless his EMPLOYER agrees to

his remaining in SERVICE after that date.

5.2.3 The TRUSTEES, upon receipt of notification from the

EMPLOYER that a MEMBER who does not qualify for a

benefit in terms of the provisions of the DISABILITY

ARRANGEMENT has, in the view of the EMPLOYER,

become totally and permanently incapable of efficiently

carrying out his duties, shall agree to such MEMBER’S

retirement at any time before he reaches NORMAL

RETIREMENT DATE, subject to agreement being

reached between the EMPLOYER and such MEMBER.

- 47 -

5.2.4 A MEMBER who is allowed to remain in SERVICE after

his NORMAL RETIREMENT DATE shall retire on such

later date as he agrees with his EMPLOYER. The

provisions of Rule 4.2.8 shall apply (provisions applicable

to contributions of MEMBERS who retire after NORMAL

RETIREMENT DATE).

5.2.5 A DEFINED BENEFIT ENTITLED MEMBER who is

allowed to remain in SERVICE after NORMAL

RETIREMENT DATE in terms of Rule 5.2.4 (rule

providing for late retirement) shall be required, on

reaching his NORMAL RETIREMENT DATE, to exercise

the option to elect benefits in terms of Appendix 1. Should

he not make an election, he shall be deemed to have

elected the benefit payable in terms of Rule 5.1 (FUND

CREDIT payable on retirement) and not the benefits in

terms of Appendix 1 and he shall cease to be a

DEFINED BENEFIT ENTITLED MEMBER.

5.3 Payment of PENSION (Amd 3 - 2014)

5.3.1 Each retiring MEMBER who joined the FUND prior to 1

June 2014, including a DEFINED BENEFIT ENTITLED

MEMBER who elects benefits in terms of the OLD

RULES, may elect either:

(a) provided he has the consent of his

QUALIFYING SPOUSE and subject to any

conditions the TRUSTEES may impose from

time to time, that his PENSION be purchased

as an annuity or annuities from a REGISTERED

INSURER in terms of Rule 5.3.2 (provisions

governing outsourcing of PENSIONS to a

REGISTERED INSURER);

or

- 48 -

(b) that his PENSION be paid from the FUND, in

which case:

(i) the terms and conditions of these

RULES governing payment of

PENSIONS shall apply; and

(ii) the value of the MEMBER’S FUND

CREDIT, less any amount commuted

in terms of Rule 5.4 (commutation),

shall be allocated to the Pensions

Account in terms of Rule 4.4.1 (a) (ii)

(credit of the MEMBER’S benefit on

retirement to the Pensions Account)

and be applied to provide a

PENSION, based on a conversion

factor applicable to his age at the

date of his retirement, as calculated

by the ACTUARY;

or

(c) subject to the requirement that a minimum value

of such amount as may be determined by the

TRUSTEES from time to time, having regard to

the requirements of the REVENUE

AUTHORITIES, must be paid from the FUND in

terms of Rule 5.3.3 (provisions applicable to

PENSIONS being paid from the FUND) and to

any further requirements of the REVENUE

AUTHORITIES, that:

(i) a portion of his PENSION be

- 49 -

purchased as an annuity or annuities

from a REGISTERED INSURER and

that the provisions of Rule 5.3.2

(provisions governing outsourcing of

PENSIONS to a REGISTERED

INSURER) shall apply mutatis

mutandis to that portion of the

PENSION;

and

(ii) the remaining portion of his PENSION

be paid from the FUND and that

accordingly

(aa) the terms and conditions of

Rule 5.3.3 (provisions

applicable to PENSIONS

being paid from the FUND),

shall apply mutatis mutandis

to that portion of the

PENSION;

and

(bb) the value of the portion of

his PENSION to be paid

from the FUND shall be

allocated to the Pensions

Account in terms of

Rule 4.4.1(a) (ii) (credit of

the MEMBER’S benefit on

retirement to the Pensions

- 50 -

Account).

5.3.2 In the case of:

(a) a retiring MEMBER who joined the FUND prior

to 1 June 2014 and who elects option (a) in

Rule 5.3.1 or Rule 5.3.1 (c) (i) (option to

purchase his PENSION or part of his PENSION

from a REGISTERED INSURER instead of

payment from the FUND); and

(b) a retiring MEMBER who joins the FUND on or

after 1 June 2014, and who accordingly is

required in terms of Rule 3.8 (a) (rule providing

that the option to have all or part of his

PENSION paid from the FUND is not available

to a MEMBER who joins the FUND on or after 1

June 2014) to purchase his PENSION from a

REGISTERED INSURER in his own name:

his PENSION or part of his PENSION shall be

purchased as an annuity or annuities in his name from a

REGISTERED INSURER of his choice and the terms

and conditions applicable to such PENSION, including

options elected by the retiring MEMBER, and the

determination of any benefits arising on his death, shall

be agreed between such person and the REGISTERED

INSURER and shall be set out in writing by the

REGISTERED INSURER; provided that:

(i) the PENSION so purchased, shall be subject to

the provisions of the Income Tax Act, 1962,

the Long-term Insurance Act, 1998 and any

requirements specified by the REVENUE

- 51 -

AUTHORITIES from time to time;

(ii) on purchase of the full PENSION in terms of

this Rule, the FUND shall have no further

liability in respect of the retiring MEMBER, such

liability resting with the REGISTERED

INSURER from whom the PENSION is

purchased; and

(iii) if only part of the PENSION is purchased in

terms of this Rule, the FUND shall have no

further liability in respect of the MEMBER with

regard to the part of the PENSION so

purchased.

5.3.3 If a retiring MEMBER who joined the FUND prior to 1

June 2014 elects option (b) in Rule 5.3.1 or Rule 5.3.1 (c)

(ii) (option to have his PENSION or part of his PENSION

paid from the FUND instead of purchased from a

REGISTERED INSURER), his PENSION or part of his

PENSION shall be paid from the FUND in accordance

with the terms and conditions governing payment of

PENSIONS from the FUND, as set out below:

(a) each PENSION shall be payable by equal

monthly instalments on or before the last day of

each month, unless otherwise agreed;

(b) subject to such modification as may have been

agreed in terms of (a) above, the first monthly

instalment of a PENSION payable to a

PENSIONER shall be payable on or before the

last day of the month following his retirement.

Full payment of his PENSION shall be made in

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the month of the PENSIONER’S death, but

thereafter his PENSION shall cease;

(c) each PENSIONER shall provide such evidence

of his survival or continued eligibility as the

ADMINISTRATORS may require. If such

evidence is not produced, then the TRUSTEES

may direct that payment of the PENSION be

suspended until such evidence is produced;

and

(d) it is specifically provided that PENSION

increases shall be paid to PENSIONERS in

accordance with the PENSION increase policy

adopted by the TRUSTEES in consultation

with the ACTUARY from time to time and

communicated to the PENSIONERS.

Increases in PENSIONS shall be payable from

the date set out in the PENSION increase

policy, having regard to the minimum

PENSION increase in terms of the ACT.

5.4 Commutation

At the commencement date of his retirement, prior to the payment

of his PENSION from the FUND or purchase of his PENSION

from a REGISTERED INSURER in terms of Rule 5.3.2 (provisions

governing outsourcing of PENSIONS to a REGISTERED INSURER

in terms of GN18) a MEMBER, including a DEFINED BENEFIT

ENTITLED MEMBER who elects benefits in terms of the OLD

RULES, may elect to commute for a lump sum:

(a) if the amount available for the purchase of a PENSION

- 53 -

from a REGISTERED INSURER does not exceed the

limit set by the relevant legislation from time to time, the

whole of the available amount; or

(b) if the whole of such amount exceeds the limit referred to

in (a), not more than one third of such amount.

- 54 -

6. DEATH BENEFITS

6.1 Benefits Payable on Death in SERVICE prior to NORMAL

RETIREMENT DATE

6.1.1 Benefit Payable on the Death in SERVICE of an OLD

DEATH BENEFIT MEMBER prior to attainment of the

NORMAL RETIREMENT DATE

If an OLD DEATH BENEFIT MEMBER dies while in

SERVICE prior to attainment of the NORMAL

RETIREMENT DATE or while in receipt of a benefit from

the DISABILITY ARRANGEMENT, that part of the

following benefits that is in excess of any amount referred

to in Rule 17.9 (cost of tracing BENEFICIARIES) shall be

payable:

(a) a PENSION equivalent in value, as determined

by the ACTUARY to a maximum of two times

such OLD DEATH BENEFIT MEMBER’S

PENSIONABLE VALUE, provided that the

maximum amount shall be determined annually

by the ACTUARY according to the affordability

provided by 1% of PENSIONABLE VALUE for

the membership as a whole; provided that:

(i) the OLD DEATH BENEFIT MEMBER

may from time to time elect to reduce

the amount of the benefit provided in

terms of this Rule by one half in which

case:

(aa) half the contribution required

shall be applied towards

retirement funding under the

MEMBER’S FUND

CREDIT; and

- 55 -

(bb) any such election shall be

valid for a period determined

by the TRUSTEES;

(ii) the BENEFICIARY may elect to

commute all or part of the PENSION

payable in terms of this Rule for a

lump sum;

(b) a PENSION to his QUALIFYING SPOUSE

equal to a maximum of 60% of the OLD

DEATH BENEFIT MEMBER’S EXPECTED

PENSION, the actual percentage to be

determined annually by the ACTUARY

according to the affordability provided by 2% of

PENSIONABLE VALUE; provided that the

QUALIFYING SPOUSE may, in the sixth

months following the death of the OLD DEATH

BENEFIT MEMBER, elect to receive a lump

sum equal to 84 times the QUALIFYING

SPOUSE’S monthly PENSION instead of the

said PENSION, in which event the PENSION

shall cease immediately and once payment of

the lump sum benefit has been made, no

further benefits shall be payable from the

FUND to or in respect of the QUALIFYING

SPOUSE;

(c) a PENSION in respect of QUALIFYING

CHILDREN of the OLD DEATH BENEFIT

MEMBER equal in total to a percentage of the

PENSION payable to his QUALIFYING

SPOUSE in terms of (b) above, in accordance

with the following table:

- 56 -

Number of Percentage of

Qualifying Qualifying

Spouse’s Children PENSION

1 25%

2 50%

3 or more 75%

The PENSION payable in respect of

QUALIFYING CHILDREN of an OLD DEATH

BENEFIT MEMBER shall be doubled for any

month for which no PENSION is payable to a

QUALIFYING SPOUSE of the OLD DEATH

BENEFIT MEMBER in terms of (b) above;

provided that this shall not apply in the event

that the QUALIFYING SPOUSE made the

election to receive a lump sum benefit in terms

of (b) above; provided further that if no

QUALIFYING SPOUSE’S PENSION is

payable, the QUALIFYING CHILDREN’S

PENSION shall be based on the QUALIFYING

SPOUSE’S PENSION that would have been

payable had there been a QUALIFYING

SPOUSE;

(d) in the event that the FUND CREDIT is greater

than the amount required to provide the

benefits set out in (a), (b) and (c) above, such

benefits shall be increased in such proportions

as determined by the TRUSTEES after

consultation with the ACTUARY;

(e) after the last payment to a QUALIFYING

SPOUSE and/or QUALIFYING CHILD has

- 57 -

been made (if any), the TRUSTEES shall

deduct the total amount paid to the

QUALIFYING SPOUSE, QUALIFYING

CHILDREN and DEPENDANTS and/or

nominees (if any), including any amount which

may have been paid as a lump sum, from the

value of the FUND CREDIT at the date of death

of the OLD DEATH BENEFIT MEMBER.

Should there be any positive difference, such

positive difference shall be paid to the

DEPENDANTS and/or nominees of the OLD

DEATH BENEFIT MEMBER or to his estate in

accordance with the provisions of Section 37C

of the ACT.

6.1.2 Benefits Payable on Death in SERVICE before NORMAL

RETIREMENT DATE in respect of MEMBERS who are not OLD

DEATH BENEFIT MEMBERS

On the death of a MEMBER, who is not an OLD DEATH BENEFIT

MEMBER, while in SERVICE prior to his NORMAL RETIREMENT

DATE there shall be payable a PENSION equivalent in value, as

determined by the ACTUARY, to that part of the amount in (a) and

(b) below that is in excess of any amount referred to in Rule 17.9

(cost of tracing beneficiaries):

(a) subject to the provisions of Rule 3.4, (evidence of health)

Rule 4.2.4 (reduction of death benefit cover if cost

overrun) and Rule 6.4 (restriction of death benefits), a

multiple of his PENSIONABLE VALUE at the date of

death determined in accordance with the following scale:

- 58 -

Age at date of death Multiple of PENSIONABLE

VALUE

Under 30 years 9 times

30 to 34 years 7 times

35 to 39 years 6 times

40 to 44 years 4.5 times

Over 45 years 4 times ;

and

(b) his FUND CREDIT;

provided that the BENEFICIARY may elect to commute all or part of

the benefit for a lump sum. (Amd 1 - 2012)

6.2 Benefits Payable on Death in SERVICE after NORMAL

RETIREMENT DATE

6.2.1 In the case of a MEMBER who remains in SERVICE

after his NORMAL RETIREMENT DATE in terms of

Rule 5.2.4 (rule providing for late retirement) and dies

while in SERVICE and either:

(a) is not a DEFINED BENEFIT ENTITLED

MEMBER; or

(b) is a DEFINED BENEFIT ENTITLED

MEMBER but did not elect benefits in terms of

Appendix 1, in accordance with the provisions

of Rule 5.2.5; (rule requiring a DEFINED

BENEFIT ENTITLED MEMBER who remains

in SERVICE after NORMAL RETIREMENT

DATE to exercise the option on reaching his

- 59 -

NORMAL RETIREMENT DATE);

the benefit payable shall be a PENSION equal in value to

that part of his FUND CREDIT that is in excess of any

amount referred to in Rule 17.9 (cost of tracing

BENEFICIARIES); provided that the BENEFICIARY may

elect to commute all or part of such benefit for a lump

sum.

6.2.2 In the case of a DEFINED BENEFIT ENTITLED

MEMBER who:

(a) remains in SERVICE after his NORMAL

RETIREMENT DATE in terms of Rule 5.2.4

(rule providing for late retirement); and

(b) elects benefits in terms of Appendix 1, in

accordance with the provisions of Rule 5.2.5;

(rule requiring a DEFINED BENEFIT

ENTITLED MEMBER who remains in

SERVICE after NORMAL RETIREMENT

DATE to exercise the option on reaching his

NORMAL RETIREMENT DATE);

then such benefits shall be payable, determined in

accordance with Rule 26 of the OLD RULES, (rule

dealing with death benefits) as would have become

payable if the MEMBER had retired on the day of his

death and had elected to commute the maximum

PENSION permissible in terms of Rule 5.4 (rule providing

for commutation of PENSION).

- 60 -

6.3 Death of a PENSIONER

On the death of a PENSIONER who elects the option in

Rule 5.3.1(b), (retirement PENSION paid from the FUND) or

Rule 5.3.1 (c) (ii) (option to have his PENSION or part of his

PENSION paid from the FUND instead of purchased from a

REGISTERED INSURER), his PENSION shall cease as provided

for in Rule 5.3.3(b) (cessation of PENSION) and the following

benefits shall be payable:

(a) a PENSION equivalent in value, as determined by the

ACTUARY, to R10 000, or after 1 January 2006, such

other amount as decided by the TRUSTEES from time to

time in consultation with the FUND’S ACTUARY; provided

that the BENEFICIARY may elect to commute all or part

of the PENSION to a lump sum within 6 months of the

death of the PENSIONER;

(b) a PENSION to his QUALIFYING SPOUSE, commencing

on or before the last day of the month following the

PENSIONER’S death and equal to 60 per cent, or such

other percentage as may have been elected by the

PENSIONER at retirement, of the PENSIONER’S

PENSION that would have been payable immediately

prior to the commencement of the PENSION to the

QUALIFYING SPOUSE, assuming no commutation had

taken place in terms of Rule 5.4 (commutation);

(c) a PENSION to his QUALIFYING CHILDREN,

commencing on or before the last day of the month

following the PENSIONER’S death and equal to a

percentage of the PENSION payable to his QUALIFYING

SPOUSE, in accordance with the following table:

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Number of Qualifying Percentage

Children

1 25

2 50

3 or more 75

The pension payable in respect of QUALIFYING

CHILDREN of a PENSIONER shall be doubled for any

month in which no PENSION is payable to a

QUALIFYING SPOUSE of the PENSIONER in terms of

(b) above; provided that if no QUALIFYING SPOUSE’S

PENSION is payable, the QUALIFYING CHILDREN’S

PENSION shall be based on the QUALIFYING

SPOUSE’S PENSION that would have been payable had

there been a QUALIFYING SPOUSE;

(d) after the last payment of a QUALIFYING SPOUSE’S

PENSION and/or QUALIFYING CHILDREN’S PENSION

has been made, the TRUSTEES shall deduct the total

amount paid to the PENSIONER, QUALIFYING SPOUSE

or QUALIFYING CHILDREN, including any amount which

may have been commuted for cash, from the MEMBER’S

FUND CREDIT. Should there be any positive difference,

such positive difference shall be paid to the

DEPENDANTS and/or nominees of the PENSIONER or

to his estate in accordance with the provisions of Section

37C of the ACT.

6.4 Restriction of Benefits

6.4.1 Notwithstanding any other provisions of this Rule 6,

payment of the benefit set out Rule 6.1.2 (a) (risk death

- 62 -

benefit) is subject to any restriction and/or conditions

imposed by the TRUSTEES or by the REGISTERED

INSURER with whom such benefit has been insured in

terms of Rule 3.4 (evidence of health); provided that in the

case of a MEMBER who joins the FUND on or after 1

September 2012, any such restriction shall only apply to

that part of the INSURED. (Amd 1 - 2012)

6.4.2 It is specifically provided that the benefit referred to in

Rule 6.1.2 (a) (risk death benefit) shall not be payable in

respect of any MEMBER who joins the FUND on or after

1 March 2001 and who dies within 2 years of the date on

which he became a MEMBER of the FUND, if such death

was as a result of suicide. (Amd 1 - 2012)

6.4.3 Instead of paying the benefits in Rule 6.1.1 (a) (risk death

benefit) and Rule 6.1.2 (a) (risk death benefit) from the

FUND, the TRUSTEES may insure all or part of such

benefits with a REGISTERED INSURER. In such case:

(a) the TRUSTEES shall, where so required by the

REGISTERED INSURER, require a MEMBER

to be examined at the REGISTERED

INSURER'S expense by a medical practitioner

appointed by the REGISTERED INSURER.

(b) Acting on the results of this examination, the

REGISTERED INSURER may decide that the

benefits referred to in Rule 6.1.1 (a) (risk death

benefit) and Rule 6.1.2 (a) (risk death benefit)

shall be restricted in such manner as decided

by the REGISTERED INSURER;

(c) the TRUSTEES must inform the MEMBER in

- 63 -

writing of the terms of any restriction imposed

in terms of this Rule;

(d) if any part of the benefits referred to in

Rule 6.1.1(a) (risk death benefit) and

Rule 6.1.2(a) (risk death benefit) have been

insured with a REGISTERED INSURER:

(i) such benefits shall not become

payable unless the claim for the

benefit has been admitted by the

REGISTERED INSURER, or shall be

limited to the amount paid by the

REGISTERED INSURER;

(ii) no increase in PENSIONABLE

VALUE during a period in which the

MEMBER is disabled in terms of the

provisions of the DISABILITY

ARRANGEMENT shall apply for the

purposes of that part of the death

benefit referred to in Rule 6.1.1 (a)

(risk death benefit) or Rule 6.1.2 (a)

(risk death benefit) without the prior

agreement of the REGISTERED

INSURER.

6.5 Commutation of PENSION Payable to QUALIFYING SPOUSE or

QUALIFYING CHILD

On application by a QUALIFYING SPOUSE or QUALIFYING

CHILD, the TRUSTEES, having regard to the circumstances of

the case, may agree to commute the whole, or such portion as

- 64 -

they may decide, of the PENSION payable to such person for a

lump sum, as determined by the ACTUARY.

6.6 Payment of PENSIONS to BENEFICIARIES, QUALIFYING

SPOUSES and QUALIFYING CHILDREN

6.6.1 The PENSION or annuity payable in terms of Rule 6.1

(benefits payable on death in SERVICE prior to NORMAL

RETIREMENT DATE) or Rule 6.2 (benefits payable on

death in SERVICE after NORMAL RETIREMENT DATE)

to a QUALIFYING SPOUSE or QUALIFYING CHILD or to

a BENEFICIARY of a MEMBER not referred to in Rule

3.8 (b) (Rule providing that the option to have all or part of

his PENSION paid from the FUND is not available to the

BENEFICIARY of a MEMBER who joins the FUND on or

after 1 June 2014), shall be paid to such person from the

FUND in terms of Rule 6.6.3 (payment of PENSIONS

from the FUND to BENEFICIARIES, QUALIFYING

SPOUSES or QUALIFYING CHILDREN); provided that

such person may elect that the annuity or PENSION

payable to him shall be purchased from a REGISTERED

INSURER in his own name in accordance with the

provisions of Rule 6.6.2 (provisions applicable to

purchase of a PENSION from a REGISTERED

INSURER). (Amd 3 - 2014)

6.6.2 In the case of:

(a) a BENEFICIARY, QUALIFYING SPOUSE or

QUALIFYING CHILD who elects to purchase his

PENSION or annuity from a REGISTERED INSURER in

terms of the proviso to Rule 6.6.1 (provision allowing

BENEFICIARIES of a MEMBER who joined the FUND

- 65 -

prior to 1 June 2014 to either to have their PENSIONS

paid from the FUND or purchased from a REGISTERED

INSURER);

or

(b) a BENEFICIARY who is required to purchase his

PENSION or annuity from a REGISTERED INSURER in

his own name in terms of Rule 3.8 (b) (Rule providing that

the option to have all or part of his PENSION paid from

the FUND is not available to the BENEFICIARY of a

MEMBER who joins the FUND on or after 1 June 2014);

the following provisions shall apply to the purchase of such annuity

or PENSION from a REGISTERED INSURER:

(i) the annuity or annuities so purchased shall be subject to

the provisions of the Income Tax Act, 1962, the Long-

term Insurance Act, 1998 and any requirements

specified by the REVENUE AUTHORITIES from time to

time;

(ii) purchase of more than one annuity shall be subject to

the requirements of the REVENUE AUTHORITIES as

specified from time to time;

(iii) on purchase of the annuity or annuities from a

REGISTERED INSURER, the FUND shall have no

further liability in respect of the benefit payable to the

BENEFICIARY, QUALIFYING SPOUSE or QUALIFYING

CHILD, such liability resting with the REGISTERED

INSURER from whom such annuity or annuities are

purchased. (Amd 3 - 2014)

- 66 -

6.6.3 The following shall apply to payment of the annuity or

PENSION to the BENEFICIARY, QUALIFYING SPOUSE

or QUALIFYING CHILD from the FUND:

(a) an amount equal to the value of the

PENSION or annuity determined in

accordance with Rule 6.1 or Rule 6.2 shall be

transferred to the Pensions Account and the

provisions of Rule 5.3.3 (payment of

PENSIONS from the FUND) shall apply

mutatis mutandis;

(b) the first monthly instalment of a PENSION

payable to an QUALIFYING SPOUSE or

QUALIFYING CHILD shall be payable on or

before the first day of the month following the

month in which the MEMBER or

PENSIONER dies; and

(c) no payment of a PENSION payable to a

QUALIFYING SPOUSE shall become due

after the death of the QUALIFYING SPOUSE

and no payment of a PENSION payable to a

QUALIFYING CHILD shall become due after

the QUALIFYING CHILD dies or otherwise

ceases to be a QUALIFYING CHILD.

6.6.4 It is specifically provided that the PENSION payable to a

QUALIFYING SPOUSE or QUALIFYING CHILD in terms

of Rule 6.3 (death of a PENSIONER) shall be paid from

- 67 -

the FUND and the provisions of Rule 6.6.3 shall apply

mutatis mutandis.

6.7 Payment of Death Benefits

6.7.1 Payment of the death benefit shall be made in terms of

Section 37C of the ACT.

6.7.2 The TRUSTEES shall be entitled to request proof to their

satisfaction as to the identity and right of any

BENEFICIARY before payment of any benefit is made to

such BENEFICIARY. The TRUSTEES shall also be

entitled to confirm the existence of PENSIONERS on an

annual basis.

- 68 -

7. TERMINATION OF SERVICE

7.1 Benefit

If a MEMBER who has not reached NORMAL RETIREMENT DATE

leaves SERVICE in circumstances not provided for elsewhere in

these RULES, he shall become entitled to a benefit equal to his

FUND CREDIT.

7.2 Payment of Benefit

7.2.1 The benefit in terms of this Rule shall be paid to the

MEMBER as a lump sum. Subject to the provisions of

Rule 11.2 (right of the TRUSTEES to withhold payment of

benefits), payment shall be made no later than 3 months

after the date of his leaving SERVICE.

7.2.2 Instead of receiving the benefit entirely as a lump sum,

the MEMBER may transfer all or, subject to (b) below,

part of the benefit to another APPROVED PENSION

FUND, PENSION PRESERVATION FUND,

APPROVED PROVIDENT FUND or APPROVED

RETIREMENT ANNUITY FUND; provided that:

(a) in the case of transfer to an APPROVED

PROVIDENT FUND, the amount so

transferred shall be less any tax payable

thereon; and

(b) transfer to a PENSION PRESERVATION

FUND is subject to the requirements of the

REVENUE AUTHORITIES as specified from

time to time.

- 69 -

7.3 Provisions applicable to DEFINED BENEFIT DEFERRED

PENSIONERS

A DEFINED BENEFIT ENTITLED MEMBER who becomes

entitled to a benefit in terms of Rule 7.1 and elects to preserve his

benefit shall be entitled to elect , within three months of leaving

the SERVICE of the EMPLOYER, or within three months of being

informed by the TRUSTEES of his options, if later, either:

(a) to receive a benefit determined in accordance with

Rule 7.1 (FUND CREDIT payable on withdrawal) and in

such case he shall become a DEFINED CONTRIBUTION

DEFERRED PENSIONER ; or

(b) to become a DEFINED BENEFIT DEFERRED

PENSIONER and in such case the following provisions

shall apply:

(i) a DEFINED BENEFIT DEFERRED

PENSIONER shall be entitled on retirement at

his NORMAL RETIREMENT DATE to a

PENSION calculated in terms of Rule 20

(amount of pension) of the OLD RULES, as set

out in Appendix 3; provided that for the purpose

of the calculation, his Pensionable Service, as

defined in Appendix 3 shall be his Pensionable

Service until the date of his leaving SERVICE;

(ii) if a DEFINED BENEFIT DEFERRED

PENSIONER dies before or after his PENSION

becomes payable, the provisions of Rule 26

(death benefits) of the OLD RULES, as set out

in Appendix 3 shall apply, as if his PENSION

had become payable on the day before the date

of his death on the assumption that he had

attained the NORMAL RETIREMENT DATE.

- 70 -

Should the DEFINED BENEFIT ENTITLED MEMBER not

make an election, he shall be deemed to have elected the

option referred to in Rule 7.3 (a) (option to become a

DEFINED CONTRIBUTION DEFERRED PENSIONER)

and he shall cease to be a DEFINED BENEFIT

ENTITLED MEMBER.

7.4 Provisions applicable to DEFINED CONTRIBUTION DEFERRED

PENSIONERS

7.4.1 The following provisions shall apply to the benefit retained

in the FUND in respect of a DEFINED CONTRIBUTION

DEFERRED PENSIONER:

(a) the DEFINED CONTRIBUTION DEFERRED

PENSIONER’S FUND CREDIT shall be

retained in the FUND as a PAID-UP BENEFIT;

(b) no further contributions shall be payable by or in

respect of a DEFINED CONTRIBUTION

DEFERRED PENSIONER;

(c) no benefit other than the benefit in (a) shall be

payable in respect of a DEFINED

CONTRIBUTION DEFERRED PENSIONER;

(d) a DEFINED CONTRIBUTION DEFERRED

PENSIONER shall have the option to transfer

his PAID-UP BENEFIT to an APPROVED

RETIREMENT ANNUITY FUND at any time

between the date of withdrawal from the FUND

in terms of this Rule 7 (withdrawal from

SERVICE) and the date of his retirement, after

which the FUND shall have no further liability

towards the DEFINED CONTRIBUTION

DEFERRED PENSIONER;

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(e) the benefit in (a) shall become payable:

(i) to the DEFINED CONTRIBUTION

DEFERRED PENSIONER on his

retirement after attaining the age of 55

years but before attaining NORMAL

RETIREMENT DATE ; or

(ii) to his BENEFICIARIES, on his death

before retirement.

7.4.2 A MEMBER who joins the FUND after 1 March 2002 shall

not be allowed to elect to become a DEFINED

CONTRIBUTION DEFERRED PENSIONER.

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8. ABSENCE

8.1 When a MEMBER is on leave with full pay he shall be deemed to

remain in SERVICE and the benefits and contributions payable

shall not be affected.

8.2 A MEMBER qualifying for a disablement benefit in terms of the

provisions of the DISABILITY ARRANGEMENT shall be deemed

to remain in SERVICE. Accordingly, he shall remain a MEMBER

of the FUND and contributions by him in terms of Rule 4.1.1 (a)

(contributions by a MEMBER in receipt of a benefit from the

DISABILITY ARRANGEMENT) and on behalf of him by the

separate DISABILITY ARRANGEMENT shall continue to be

payable in terms of proviso (v) to Rule 4.2.1 (contributions in

respect of a MEMBER in receipt of a benefit from the DISABILITY

ARRANGEMENT) and he will remain entitled to rights and

benefits in terms of the RULES; provided that such MEMBER'S

PENSIONABLE VALUE shall, for the purposes of the RULES, be

equal to his PENSIONABLE VALUE as at the date of his

disablement, increased in the same proportion as his disability

income benefit is increased from time to time.

8.3 If a MEMBER is on leave with no pay or less than full pay then:

(a) his FUND CREDIT shall be credited with any amounts

actually contributed by the MEMBER and/or the

EMPLOYER during his period of absence, other than the

contributions applied in terms of Rule 8.3 (b);

(b) that part of the EMPLOYER’S contributions in terms of

Rule 4.2.2 (a) (EMPLOYER contributions towards risk

and expenses) and Rule 4.2.2 (b) (premiums paid

towards the cost of the UNAPPROVED RISK BENEFITS)

that is applied towards the provision of the risk benefits

provided by the FUND, the UNAPPROVED RISK

BENEFITS and the administration expenses shall be paid

by the EMPLOYER, based on the MEMBER’S

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PENSIONABLE VALUE immediately prior to the period of

absence, for up to 1 year during such absence and

accordingly cover for the risk benefits provided by the

FUND shall be maintained for such period.

(Amd 4 - 2015)

(c) any benefit which may become payable during such

period of absence shall be based on the MEMBER’S

PENSIONABLE VALUE immediately prior to such

absence; and

(d) after the expiry of the period referred to in (b), cover for

the risk benefits provided by the FUND shall terminate

unless the MEMBER has returned to active SERVICE or

unless the TRUSTEES at the request of the EMPLOYER

and after consultation with the ACTUARY have agreed to

extend such period.

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9. TRANSFERS

9.1 Transfers into the FUND

9.1.1 If a MEMBER or a group of MEMBERS transfers to the

FUND from a PREVIOUS FUND, the FUND shall receive

the amount payable to the FUND in respect of each such

MEMBER. Such amount shall be allocated to the

MEMBER’S FUND CREDIT.

9.1.2 If a MEMBER who was a member of an APPROVED

PROVIDENT FUND, any other APPROVED PENSION

FUND, a Preservation Provident Fund or a Preservation

Pension Fund prior to becoming a MEMBER of the

FUND chooses to transfer the benefit to which he is

entitled on leaving that fund into the FUND, the amount

so transferred shall be applied under the MEMBER’S

FUND CREDIT.

9.2 Transfers out of the FUND

9.2.1 If an EMPLOYER ceases to participate in the FUND as

a result of a decision to participate in or to establish

another APPROVED PENSION FUND or an

APPROVED PROVIDENT FUND, then the MEMBER’S

FUND CREDIT, plus such equitable portion of the

reserves of the FUND as may be determined by the

TRUSTEES in consultation with the ACTUARY but less

any tax payable in the case of transfer to an

APPROVED PROVIDENT FUND, shall be transferred to

such APPROVED PROVIDENT FUND or APPROVED

PENSION FUND.

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The EMPLOYER shall cease to participate in the FUND

on finalisation of the transfer.

9.2.2 In the event of a transfer of an EMPLOYER’S business

contemplated in Section 197 of the Labour Relations Act,

no MEMBER shall become entitled to a benefit in terms of

Rule 7.1. (withdrawal benefit). The TRUSTEES shall

arrange for the FUND CREDIT of such MEMBER to be

dealt with in terms of either (a) or (b) below:

(a) to be transferred to an APPROVED PENSION

FUND or an APPROVED PROVIDENT FUND

established for the benefit of the employees of

the organisation into which the business of his

EMPLOYER has been transferred; provided

that

(i) the transfer of assets shall be made

as soon as reasonably possible after

the approval of the scheme for

transfer in terms of Section 14 by the

REGISTRAR;

(ii) unless otherwise agreed between the

TRUSTEES of the FUND and the

TRUSTEES of such APPROVED

PENSION FUND or APPROVED

PROVIDENT FUND, the transfer shall

be made in cash and the amount to

be transferred shall be increased or

decreased by the INVESTMENT

RETURN of the FUND from the date

on which the MEMBER joined such

transferee FUND and the date of

finalisation of the transfer;

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or

(b) if the MEMBER so elects, to be transferred to:

(i) an APPROVED RETIREMENT

ANNUITY FUND; or

(ii) depending on the provisions of the

agreement governing the transfer of

business contemplated in Section 197

of the Labour Relations Act and, if

applicable, the terms and conditions

of the MEMBER’S contract of

employment with his new

EMPLOYER, and subject to any

requirements of the REVENUE

AUTHORITIES, to a PENSION

PRESERVATION FUND.

On finalisation of the transfer of his benefit in terms of the

above, the MEMBER shall cease to be a MEMBER of the

FUND.

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10. TERMINATION AND PARTIAL TERMINATION OF THE FUND

10.1 Termination of the FUND

10.1.1 The FUND may be terminated in the following

circumstances:

(a) by the TRUSTEES, subject to the consent of

the PRINCIPAL EMPLOYER;

(b) by order of court;

(c) if the EMPLOYER decides unanimously that the

FUND be dissolved, subject to giving six

months' written notice to the TRUSTEES;

(d) if the PRINCIPAL EMPLOYER is wound up.

10.1.2 If the FUND is to be terminated, then the following

provisions shall apply:

(a) the TRUSTEES shall, subject to the approval of

the REGISTRAR, appoint a liquidator who must

liquidate the FUND with effect from the date of

the REGISTRAR'S approval of his appointment;

(b) in accordance with the instructions of the

liquidator, the total moneys available under the

FUND after payment of all expenses incurred in

the liquidation shall be applied to provide

benefits for all MEMBERS on an equitable basis

recommended by the ACTUARY and approved

by the liquidator;

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(c) the liquidator shall allocate the balance in the

Pensions Account to the PENSIONERS on a

basis determined by the ACTUARY, and use

each PENSIONER’S allocation to purchase a

PENSION from a REGISTERED INSURER;

provided that

(i) the conditions determined in respect

of such PENSION shall be as similar

to the PENSIONER’S PENSION as is

reasonably possible; and

(ii) the provisions of Rule 5.3.2 (purchase

of PENSIONS from a REGISTERED

INSURER) shall apply mutatis

mutandis;

(d) the amount available for a MEMBER under (b)

above shall, as directed by the liquidator, either:

(i) be transferred for his benefit to

another APPROVED PENSION

FUND, PENSION PRESERVATION

FUND, APPROVED PROVIDENT

FUND or APPROVED RETIREMENT

ANNUITY FUND; or

(ii) if the MEMBER so requests, be paid

to the MEMBER as a lump sum

benefit; or

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(iii) at the request of the MEMBER, and

subject to the requirements of the

REVENUE AUTHORITIES as

specified from time to time, be paid as

a combination of (i) and (ii) above;

provided that:

(aa) in the case of transfer to an

APPROVED PROVIDENT FUND, the

amount so transferred shall be less

any tax payable thereon; and

(bb) transfer to a PENSION

PRESERVATION FUND is subject to

the requirements of the REVENUE

AUTHORITIES as specified from time

to time;

and

(e) if a person to whom an amount is payable

cannot be traced, the amount referred to in (b)

shall be transferred to a national fund

established by legislation for the purpose of

housing such benefits, or to a FUND

established by an administrator for the same

purpose.

10.1.3 In making an apportionment in terms of Rule 10.1.2(b)

(application of benefits on liquidation) the liquidator shall

take into consideration every former MEMBER who left

SERVICE during the period of twelve months ending on

the date of commencement of liquidation. The former

MEMBER’S apportionment shall be reduced by the

amount of the benefit which he received on leaving

SERVICE.

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10.1.4 When all payments have been made by the FUND in

terms of Rule 10.1.2 (appointment of liquidator, disposal

and payment of liquidation benefits), the FUND shall

have no further liability to any person and the FUND'S

registration in terms of the ACT shall be cancelled.

10.1.5 It is specifically provided that the provisions of the

Pension Funds Second Amendment Act, Act No. 39 of

2001, shall over-ride any conflicting provisions in this

Rule 10.1 (full liquidation of the FUND), in particular with

regard to payment of minimum benefits and the rights of

the stakeholders.

10.2 Partial Termination

10.2.1 Any EMPLOYER other than the PRINCIPAL

EMPLOYER, may, for any reason whatsoever, give

notice in writing to the TRUSTEES of its intention to

cease its participation as an EMPLOYER in the FUND.

In such case, the provisions of Rule 10.1.2 (appointment

of liquidator, disposal and payment of liquidation

benefits) shall apply; provided that, that part of the FUND

which is to be liquidated in terms of the ACT shall be

limited to the total assets and liabilities attributable to the

MEMBERS related to the withdrawing EMPLOYER as

determined by the liquidator in consultation with the

ACTUARY.

10.2.2 In making an apportionment in terms of Rule 10.1.2(b)

(application of liquidation benefits) the liquidator shall

take into consideration every former MEMBER of the

withdrawing EMPLOYER who left SERVICE during the

period of twelve months ending on the date of

commencement of partial liquidation. The former

MEMBER’S apportionment shall be reduced by the

amount of the benefit which he received on leaving

SERVICE.

- 81 -

10.2.3 When all payments have been made by the FUND in

terms of Rule 10.1.2 (appointment of liquidator, disposal

and payment of liquidation benefits) in respect of the

withdrawing EMPLOYER, the FUND shall have no further

liability to any person related to that EMPLOYER in

respect of whom the FUND held assets and liabilities at

the date of partial liquidation.

- 82 -

11. DEDUCTIONS FROM BENEFITS

11.1 The TRUSTEES shall have the right to make such deductions from

the benefit to which a MEMBER or other BENEFICIARY is entitled

in terms of the RULES as are permitted in terms of Section 37D of

the ACT and in respect of which a claim has been lodged in writing

within such reasonable time of the event giving rise to the benefit as

the TRUSTEES may from time to time fix for making such claims;

provided that the applicable benefit has not been paid to the

MEMBER concerned.

11.2 Notwithstanding any other provisions of these RULES, the

TRUSTEES may, where an EMPLOYER has instituted legal

proceedings in a court of law and/or laid a criminal charge against

the MEMBER concerned for compensation in respect of damage

caused to the EMPLOYER as contemplated in Section 37D of the

ACT, withhold payment of the benefit until such time as the matter

has been finally determined by a competent court of law or has

been settled or formally withdrawn; provided that:

(a) the amount withheld shall not exceed the amount that

may be deducted in terms of Section 37D (1) (b)(ii) of the

ACT;

(b) the TRUSTEES in their reasonable discretion are satisfied

that the EMPLOYER has made out a prima facie case

against the MEMBER concerned and there is reason to

believe that the EMPLOYER has a reasonable chance of

success in the proceedings that have been instituted;

(c) the TRUSTEES are satisfied that the EMPLOYER is not

at any stage of the proceedings responsible for any undue

delay in the prosecution of the proceedings;

- 83 -

(d) once the proceedings have been determined, settled or

withdrawn, any benefit to which the MEMBER is entitled

is paid forthwith; and

(e) the TRUSTEES, at the express written request of a

MEMBER whose benefit is withheld, may, if applicable

and practical, permit the value of the MEMBER’S benefit

as at the time of such request to be isolated, in whatever

manner the TRUSTEES believe appropriate, from the

possibility of a decrease therein as a result of poor

investment performance.

11.3 If a MEMBER is retiring on PENSION, the TRUSTEES shall have

the right to commute for a lump sum an amount of the PENSION up

to the maximum amount which may be commuted in terms of

Rule 5.4 (commutation) and to make the deduction in terms of

Section 37D of the ACT from such lump sum.

11.4 Subject to the provisions of the ACT, the TRUSTEES shall have the

right to make such deductions from the FUND CREDIT of a

MEMBER as are permitted in terms of Section 37D(1)(d) of the

ACT.

11.5 All benefit payments are subject to the provisions of the Income

Tax Act 1962, as amended from time to time, and subject to any

other applicable legislation prevailing from time to time’.

- 84 -

12. MANAGEMENT OF THE FUND

12.1 TRUSTEES

12.1.1 Subject to the provisions of the ACT and of these RULES,

the sole responsibility for the management of the FUND

shall be vested in the TRUSTEES.

12.1.2 The TRUSTEES and their alternates appointed or

elected in terms of these RULES who are full-time

employees in the SERVICE of an EMPLOYER shall not

be entitled to any remuneration for their services as

such; provided that any TRUSTEE who is not an

employee shall be remunerated for their services on

such basis as may be determined by the TRUSTEES.

12.1.3 The TRUSTEES shall have the power in the name of the

FUND to enter into and sign any contracts or documents

and to institute, conduct, defend, compound or abandon

any legal proceedings by or against the FUND and to

make bye-laws prescribing the form and the manner in

which claims are to be lodged and dealt with by the

FUND.

12.2 EMPLOYERS' TRUSTEES

12.2.1 The PRINCIPAL EMPLOYER shall appoint four

TRUSTEES (hereafter known as EMPLOYERS’

TRUSTEES) and may appoint one alternate Trustee who

shall act in the absence or incapacity of any of the

EMPLOYERS’ TRUSTEES. The PRINCIPAL

EMPLOYER shall in writing, on 1 March of each year,

confirm to the Board of Trustees the four EMPLOYERS’

TRUSTEES.

- 85 -

12.2.2 The term of office of the EMPLOYERS’ TRUSTEES

shall be four years. The EMPLOYERS’ TRUSTEES

shall cease to hold office when MEMBERS’ TRUSTEES

are elected in terms of Rule 12.3.2; provided that the

PRINCIPAL EMPLOYER shall have the right to remove

an EMPLOYERS’ TRUSTEE from office at any time and

to appoint a new EMPLOYERS’ TRUSTEE. At the time

MEMBERS TRUSTEES are elected in terms of Rule

12.3.2, the PRINCIPAL EMPLOYER shall review the

appointment of the EMPLOYERS’ TRUSTEES; provided

that the EMPLOYERS’ TRUSTEES in office at that time

shall be eligible for re-appointment.

12.2.3 An EMPLOYERS' TRUSTEE shall cease to be a

TRUSTEE

(a) if he is removed from office by the PRINCIPAL

EMPLOYER in terms of Rule 12.2.2 (right of

PRINCIPAL EMPLOYER to remove

EMPLOYERS’ TRUSTEE from office); or

(b) if he gives written notification of his resignation

to the PRINCIPAL EMPLOYER and the other

TRUSTEES; or

(c) if his four-year term of office expires and he is

not re-appointed in terms of Rule 12.2.2.

12.3 MEMBERS' and PENSIONERS’ TRUSTEES

12.3.1 The MEMBERS shall elect three TRUSTEES (hereafter

known as MEMBERS’ TRUSTEES) and may also elect

one alternate Trustee to act in the absence or incapacity

- 86 -

of any of the MEMBERS’ TRUSTEES. The MEMBERS’

TRUSTEES and their alternate, if elected, shall be

MEMBERS of the FUND. The PENSIONERS shall elect

one TRUSTEE (hereafter known as the PENSIONERS’

TRUSTEE) and may elect one alternate TRUSTEE to

act in the absence or incapacity of the PENSIONERS’

TRUSTEE. The PENSIONERS’ TRUSTEE and his

alternate, if elected, shall be PENSIONERS of the

FUND.

12.3.2 The term of office of the MEMBERS’ TRUSTEES, the

PENSIONER TRUSTEE and the applicable alternate

TRUSTEES (if any) shall be four years. At the end of this

period, an election shall take place in accordance with the

following procedures:

(a) the MEMBERS and PENSIONERS shall be asked to

nominate candidates for election to the board of

TRUSTEES as MEMBERS’ TRUSTEES and as a

PENSIONER TRUSTEES;

(b) each nominee must accept his nomination in writing;

(c) the MEMBERS and PENSIONERS will then elect, by

secret ballot, the MEMBERS’ TRUSTEES, the

PENSIONER TRUSTEE and any alternates from among

the nominees who have accepted the nomination;

(d) the nominees who receive the highest number of votes

from the active MEMBERS of the FUND will become the

MEMBERS’ TRUSTEES, and the nominees receiving the

next highest number of votes (if any) from the active

MEMBERS of the FUND may become the alternate

- 87 -

MEMBERS’ TRUSTEES;

(e) the nominee who receives the highest number of votes

from the PENSIONERS will become the PENSIONERS’

TRUSTEE, and the nominee receiving the next highest

number of votes (if any) from the PENSIONERS may

become the alternate PENSIONERS’ TRUSTEE.

If a vacancy occurs between elections due to the resignation of the

one of the MEMBERS’ TRUSTEES or the resignation of the

PENSIONERS’ TRUSTEE and the vacancy cannot be filled by the

applicable alternate TRUSTEE, the vacancy shall be filled by the

candidate who was runner-up to the alternate TRUSTEE at the

preceding election. If there are no alternate MEMBERS’

TRUSTEES and there is no alternate PENSIONERS’ TRUSTEE

and there are no runners up at the last election of TRUSTEES,

the TRUSTEES shall hold an election to elect a MEMBERS’

TRUSTEE or if applicable, a PENSIONERS’ TRUSTEE to fill the

vacancy. Such election shall take place within forty five (45) days

of the date of resignation of the MEMBERS’ TRUSTEE or if

applicable, the PENSIONERS’ TRUSTEE. (Amd 4 - 2015)

12.3.3 A MEMBERS' TRUSTEE shall cease to hold office:

(a) if 75 per cent of the full board of the TRUSTEES

with good cause elect to remove him from

office;

(b) if he has failed to attend three consecutive

TRUSTEES' meetings without leave from the

other MEMBERS' TRUSTEES; or

(c) if he ceases to be a MEMBER of the FUND or a

PENSIONER or his four year term of office

- 88 -

expires and he is not re-elected or reappointed

in terms of Rule 12.3.2 (filling of vacancies

among the MEMBERS’ TRUSTEES).

A MEMBERS' TRUSTEE may also resign at any time on

giving written notice to the MEMBERS and the other

TRUSTEES.

12.4 Disqualification from holding office as TRUSTEE

No person in any of the following categories shall be eligible for

appointment as a TRUSTEE and if a TRUSTEE at any time falls

into any such category he shall cease to hold office:

(a) a minor or any person who is insane or otherwise

incapable of acting;

(b) any person who is disqualified from being a director in

terms of the Companies Act, 1973;

(c) an unrehabilitated insolvent;

(d) any person removed from an office of trust on account of

misconduct;

(e) any person who has been convicted of any offence and

sentenced to imprisonment without the option of a fine;

(f) any person who has been convicted of theft, fraud,

forgery, uttering a forged document or perjury or any other

crime of which dishonesty is an element.

- 89 -

12.5 Meetings of TRUSTEES

12.5.1 The TRUSTEES shall meet no less than quarterly or as

necessary to conduct the business of the FUND. A

quorum shall be five TRUSTEES; provided that at least

two of the TRUSTEES present are EMPLOYERS’

TRUSTEES and at least two of the TRUSTEES present

are MEMBERS’ TRUSTEES; provided that one of these

may be the PENSIONERS’ TRUSTEE.

12.5.2 Minutes of all meetings must be kept and at least 15 days’

notice of each ordinary meeting shall be given to each

TRUSTEE; provided that at the discretion of the

TRUSTEES this notice period may be waived or reduced.

12.5.3 The office of chairperson shall alternate on an annual

basis between chairpersons elected from among the

EMPLOYERS' TRUSTEES and chairpersons elected

from among the MEMBERS' TRUSTEES; provided that if

the board of TRUSTEES reaches consensus on the

matter, a chairperson elected from either party may hold

office for more than one consecutive term. If the

chairperson of the TRUSTEES is absent from any

meeting, the TRUSTEES shall elect a chairperson for that

meeting from their number.

12.5.4 At all meetings of the TRUSTEES the decision of the

majority shall be binding, provided that at least one of the

MEMBERS’ TRUSTEES (or the PENSIONERS’

TRUSTEE) and one of the EMPLOYERS’ TRUSTEES

are in agreement with the decision. In the case of an

equality of votes the matter shall be held over to the next

meeting of the TRUSTEES. If the votes remain equal at

- 90 -

that meeting, the matter shall be referred to a person

qualified in the matter under dispute for a

recommendation. If the matter cannot be settled based on

this recommendation, the matter shall be referred to two

actuaries not associated with the FUND but agreed to by

the TRUSTEES and their decision on the matter shall be

final. In the event that the actuaries are unable to agree,

the matter shall be referred to an arbitrator agreed to by

the TRUSTEES; provided that if the TRUSTEES are

unable to agree upon whom the arbitrator should be, the

Association under whose jurisdiction the matter would be

best suited, would be requested to assist with the

appointment of the arbitrator. The arbitrator's decision on

the matter shall be final. (Amd 4 - 2015)

12.5.5 A resolution in writing signed by all the TRUSTEES (for

which purpose an alternate may sign in the absence of

the TRUSTEE for whom he is an alternate) shall be of the

same force and effect as a resolution passed at a meeting

of TRUSTEES and must be recorded in the FUND'S

minute book.

12.6 Meetings of MEMBERS

12.6.1 Should the TRUSTEES deem it necessary and in the

interest of the FUND, an ANNUAL GENERAL MEETING

shall be convened as soon as reasonably possible after

the end of each FINANCIAL YEAR. Notice of the

intention to convene such meeting must be sent to

MEMBERS and PENSIONERS at least 21 days prior to

the meeting stating the date, time and venue of the

meeting.

12.6.2 MEMBERS of the board of TRUSTEES may be present

- 91 -

at any meeting of MEMBERS and PENSIONERS of the

FUND.

12.6.3 The chairman of the board of TRUSTEES shall be the

chairman of a meeting of MEMBERS and PENSIONERS

or in his absence any MEMBER of the board of

TRUSTEES or if no such MEMBER is present, any

MEMBER or PENSIONER of the FUND elected by the

MEMBERS and PENSIONERS present.

12.6.4 The MEMBERS and PENSIONERS must be advised of

the financial condition of the FUND and any amendments

to the RULES at the ANNUAL GENERAL MEETING, or if

this is not practical, by such other means as the

TRUSTEES deem to be appropriate.

12.6.5 Any agreement reached at the ANNUAL GENERAL

MEETING shall serve as a recommendation to the

TRUSTEES who shall act thereon in a manner as they

deem necessary.

12.7 Other Appointments

12.7.1 The TRUSTEES shall appoint an ACTUARY, an

AUDITOR and ADMINISTRATORS and may withdraw

any such appointment and make another appointment in

its place at any time.

12.7.2 The TRUSTEES shall appoint a PRINCIPAL OFFICER in

terms of the ACT and may withdraw any such

- 92 -

appointment and make another appointment in its place

at any time. If the PRINCIPAL OFFICER is absent from

the Republic of South Africa or is otherwise unable to

perform his duties, the TRUSTEES shall within 30 days

appoint another person to act as PRINCIPAL OFFICER

for the period of his absence or inability.

12.7.3 The PRINCIPAL OFFICER shall be entitled to such

remuneration for his SERVICES as decided by the

TRUSTEES from time to time.

12.7.4 The TRUSTEES may appoint consultants on such terms

as they may determine and may withdraw any such

appointment at any time.

12.8 Indemnification of Officers of the FUND

12.8.1 The TRUSTEES and all other officers of the FUND shall

be indemnified by the FUND against all proceedings,

costs and expenses incurred by reason of any claim in

connection with the FUND not arising from their

negligence, dishonesty or fraud.

12.8.2 The TRUSTEES must ensure that the FUND is insured

against any loss resulting from the negligence, dishonesty

or fraud of any of its officers.

12.9 Sub-Committees

12.9.1 The TRUSTEES may decide that any power of decision

on any matter that is vested in them, over and above a

matter referred to in Rule 13.1.6 (delegation of

TRUSTEES’ power to invest the assets of the FUND to

- 93 -

investment managers), shall be delegated, on such terms

and conditions as they may specify, to a sub-committee,

or sub-committees.

12.9.2 The decision of a sub-committee to which a power is

delegated shall, unless the TRUSTEES stipulate that it

must be referred to them for ratification, be regarded as a

decision of the FUND and shall be recorded in the

minutes at the next meeting of the TRUSTEES. It is

specifically provided that the full board of the TRUSTEES

shall retain full responsibility and liability for any decision

made by a sub-committee to whom the TRUSTEES’

power of decision making has been delegated in terms of

this Rule.

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13. FINANCIAL PROVISIONS

13.1 Investments

13.1.1 All moneys received on account of the FUND must be

paid into a banking account opened in the name of the

FUND.

13.1.2 The TRUSTEES shall have full power, subject to the

provisions of the ACT and the requirements of the

REGISTRAR, to receive, administer and apply the

moneys of the FUND and in their absolute discretion to

invest, put out at interest, place on deposit, make

advances, or otherwise deal with the moneys of the

FUND upon such security and in such manner as they

may from time to time determine and to realise, vary,

reinvest or otherwise deal with such securities and other

investments as they from time to time determine.

13.1.3 The TRUSTEES shall have power to effect policies of

insurance with one or more REGISTERED INSURERS

for the purpose of investing the FUND'S moneys in order

to meet the cost of providing benefits in terms of these

RULES and/or to insure, in whole or in part, the death

benefits payable in terms of these RULES.

13.1.4 The TRUSTEES may, subject to the requirements of the

REGISTRAR, obtain an overdraft from a bank or borrow

from an EMPLOYER or any other party, on such terms as

they think fit, such sums as they approve for the purpose

of completing any investment or meeting any temporary

cash shortage and for this purpose may give such

security as they decide.

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13.1.5 All title deeds and securities must be registered in the

name of the FUND or in the name of such nominee

company acceptable to the REGISTRAR as the

TRUSTEES may appoint. The documents of title

registered in the name of the FUND in connection with

any investment or asset of the FUND must be kept in safe

custody at the registered office of the FUND or in a

banking institution, as decided by the TRUSTEES. Any

documents of title registered in the name of a nominee

company in connection with any investment or asset of

the FUND must be kept in safe custody at the registered

office of that company or in a banking institution, as

decided by that company.

13.1.6 The power of the TRUSTEES to make investments and to

realise, vary, reinvest or otherwise deal with the securities

concerned, may be delegated by the TRUSTEES, on

such terms and conditions as they may specify, to

(a) a sub-committee of such of their number as

they nominate;

(b) a financial institution as defined in the Financial

Institutions (Investment of Funds) Act, 1984;

or

(c) a person licensed in terms of the Securities

Services Act, 2004.

- 96 -

The TRUSTEES shall not be liable for the negligence,

dishonesty or fraud of an institution referred to in (b) or a

person referred to in (c); provided that the TRUSTEES

have received written confirmation that the institution

referred to in (b) or the person referred to in (c) have

arranged insurance cover of an amount satisfactory to the

TRUSTEES in respect of any liability which may be

incurred by such person or institution in respect of the

FUND’S investments.

13.1.7 The TRUSTEES shall have the power to transfer the

assets and liabilities of the FUND or a portion thereof to

another APPROVED PROVIDENT FUND or to an

APPROVED PENSION FUND or to take transfer of the

assets and liabilities or a portion thereof of another

APPROVED PROVIDENT FUND or an APPROVED

PENSION FUND.

13.1.8 (a) Notwithstanding the provisions of Rule 13.1.2

(TRUSTEES’ power to invest FUND assets),

the investment powers of the TRUSTEES may,

upon the written request of the MEMBER and to

the extent determined by the TRUSTEES, be

delegated by the TRUSTEES to each MEMBER

of the FUND on such terms and conditions and

in accordance with such procedures as the

TRUSTEES may prescribe from time to time.

These terms, conditions and procedures include

but are not limited to:

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(i) the right of the TRUSTEES to

determine, and change from time to

time, the number, range and

composition of any investment

portfolios from which a MEMBER may

elect to invest all or part of his FUND

CREDIT and/or contributions paid by

and in respect of him;

(ii) the right of the TRUSTEES, in their

sole discretion, to take into account

any charges incurred in connection

with any investment choice made by a

MEMBER when determining the

INVESTMENT RETURN in respect of

that MEMBER;

(iii) in the case of a MEMBER who does

not elect within such timeframe

specified by the TRUSTEES, an

investment portfolio in respect of all or

part of his FUND CREDIT and/or

contributions paid by and in respect of

him, the right of the TRUSTEES to

select and change the investment

portfolio appropriate for such a

MEMBER taking into account the

period remaining to a notional target

retirement age as determined by the

TRUSTEES.

- 98 -

(b) The TRUSTEES shall take reasonable steps to

ensure that MEMBERS are adequately

informed of their investment choices available to

them and the consequences of their decisions.

The TRUSTEES shall in no way advise,

influence or assist MEMBERS in making their

choices, such advice to be obtained by

MEMBERS from their personal financial

planners or such other financial advisors as the

TRUSTEES may from time to time arrange for

the benefit of MEMBERS.

(c) Whilst the TRUSTEES shall take reasonable

steps to ensure that the interests of all

MEMBERS are protected, the TRUSTEES and

the FUND shall not be liable for any loss,

damage or prejudice suffered, or alleged to be

suffered, by any MEMBER or other person

claiming to be entitled to a benefit or any other

amount under the FUND, as a result of or in

connection with any investment choice made by

a MEMBER.

(d) It is specifically provided that a DEFINED

BENEFIT ENTITLED MEMBER who elects, in

terms of the provisions of this Rule, that the

assets comprising his FUND CREDIT be

transferred to an investment portfolio of his own

choice shall cease to be a DEFINED BENEFIT

ENTITLED MEMBER.

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13.2 Housing Loans

The TRUSTEES shall have the power to furnish a guarantee in

respect of a loan by some other person to a MEMBER for a

purpose referred to in Section 19(5)(a) of the ACT and, if so

required for such purpose, may make a deposit in pledge with a

bank or building society as collateral security. Such guarantee shall

be subject to the provisions of the ACT and the requirements of the

REGISTRAR.

13.3 Expenses

The expenses related to the management and administration of the

FUND including the cost of audits and actuarial investigations shall

be paid by the FUND from the Risk Reserve.

13.4 Accounts

The TRUSTEES shall 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, to be audited by the AUDITOR and then to be

submitted to the REGISTRAR.

13.5 Actuarial Valuations

13.5.1 The TRUSTEES shall keep such registers and records as

will enable the ACTUARY to undertake an actuarial

valuation of the FUND at any time.

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13.5.2 The financial condition of the FUND shall be

investigated and reported on by the ACTUARY at

intervals not exceeding three years. The TRUSTEES

shall forward a copy of such report to the REGISTRAR

and shall cause a copy of such report or a summary

thereof to be sent to every EMPLOYER participating in

the FUND.

13.5.3 Any actuarial surplus disclosed after the implementation

of a scheme for surplus apportionment in terms of

legislation, shall be credited to the MEMBER Surplus

Reserve and the EMPLOYER Surplus Reserve in terms

of Section 15C(1) of the ACT; provided that any surplus

that arises in the Guarantee Reserve shall be credited

exclusively to the EMPLOYER Surplus Reserve.

13.5.4 The TRUSTEES, at their discretion and on the advice of

the ACTUARY, may make transfers from time to time

between the reserve accounts of the FUND maintained

in terms of Rule 4.4, having regard to the purpose of

each such account and the amount standing to its credit

at any particular time.

13.6 Late payment Interest on Benefits

Late payment interest may be payable on any benefit due to a

MEMBER or BENEFICIARY on such MEMBER’S retirement, death

or leaving SERVICE in terms of Rule 7 (withdrawal benefits), or,

subject to the provisions of the ACT, on any amount transferred for

his benefit to another APPROVED PENSION FUND, APPROVED

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PROVIDENT FUND or APPROVED RETIREMENT ANNUITY

FUND or, subject to the requirements of the REVENUE

AUTHORITIES to a PENSION PRESERVATION FUND. Any such

interest shall be paid in accordance with the practice of the FUND.

It is specifically provided that if a MEMBER elects to transfer his

benefit in terms of Rule 7.2.2 (transfer of withdrawal benefit to

another arrangement for retirement finding) and his benefit is not

transferred to the FUND concerned before the expiration of the

period prescribed by legislation, interest shall be payable on such

benefit at a rate that is not less than the rate prescribed by

legislation.

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14. ADMINISTRATION OF THE FUND

14.1 The FUND shall be administered by ADMINISTRATORS appointed

by, and acting on, the instructions of the TRUSTEES.

14.2 The EMPLOYERS shall from time to time furnish to the TRUSTEES

in respect of those employees who are MEMBERS all necessary

particulars affecting their benefits or their entitlement to benefits

under the FUND and the TRUSTEES shall ensure that such

particulars are furnished to the ADMINISTRATORS. The

TRUSTEES and the ADMINISTRATORS shall be entitled to act

upon such particulars without further enquiry and shall not be

responsible to any MEMBER or to the EMPLOYER or to any other

person or body whatsoever for any mis-statements or errors or

omissions which may be contained in such particulars.

14.3 The ADMINISTRATORS shall keep a complete record of all

necessary particulars of the MEMBERS of the FUND and of all

persons entitled to benefits and of all other matters essential to the

operation of the FUND.

14.4 The ADMINISTRATORS shall keep full and true accounts of the

FUND as required in terms of Rule 13.4 (TRUSTEES’ duty to

maintain proper accounts).

14.5 All cheques, contracts and other documents pertaining to the FUND

shall be signed by such persons as the TRUSTEES by resolution

may appoint; provided that documents to be deposited with the

REGISTRAR must be signed in the manner set out in the ACT.

14.6 The ADMINISTRATORS shall maintain fidelity cover to indemnify

the FUND against any loss resulting from the negligence,

dishonesty or fraud of any person employed by them.

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15. ALTERATIONS

15.1 The TRUSTEES may alter these RULES at any time.

15.2 No alteration to the RULES which affects the terms on which the

EMPLOYER'S contributions are based or on which the FUND may

be terminated may be made without the approval of the PRINCIPAL

EMPLOYER.

15.3 No alteration to the RULES which affects the financial condition of

the FUND or the rights and/or benefits of the MEMBERS in general

may be made until it has been referred by the TRUSTEES to the

ACTUARY and the PRINCIPAL EMPLOYER for them to provide

their comments and suggestions, which must be taken into account

by the TRUSTEES.

15.4 All alterations to the RULES shall be submitted to the REGISTRAR,

the REVENUE AUTHORITIES and any other statutory authority

who so requires.

15.5 It is specifically provided that the relevant provisions of Appendix 3

containing extracts from the OLD RULES shall apply to the

continued payment of PENSIONS to a person who was a

PENSIONER (as defined in Appendix 3) immediately prior to the

CONVERSION DATE and to the determination of benefits payable

on the death of such PENSIONER; provided that increases to such

PENSIONS shall be made in terms of the PENSION increase policy

adopted by the TRUSTEES as provided for in Rule 5.3.3 (d)

(increases to PENSIONS being paid from the FUND).

15.6 If the registration of any alteration to these RULES in terms of the

ACT is effected on a date after the effective date of the alteration,

the alteration shall nevertheless take effect from the effective date

as stated in the alteration.

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16. INTERPRETATION OF RULES AND DISPUTES

16.1 The decision of the TRUSTEES as to the meaning of or

interpretation of these RULES or of any particular Rule or part of a

Rule shall be final and binding on the EMPLOYERS, MEMBERS

and every person claiming to be entitled to a benefit under these

RULES, subject to the provisions of Section 30A of the ACT.

16.2 Any question which may arise with regard to a claim by any person

under these RULES shall be decided by the TRUSTEES, subject to

the provisions of Section 30A of the ACT.

16.3 If any person affected by a decision of the TRUSTEES in terms of

RULES 16.1 (TRUSTEES’ power to make binding decisions on

queries related to the interpretation of RULES) or 16.2 (questions

regarding claims to be decided by the TRUSTEES) is dissatisfied

with the decision, he shall have the right to lodge a written

complaint as envisaged in Section 30A of the ACT. If such person

remains dissatisfied he may lodge his complaint with the Pension

Funds Adjudicator appointed in terms of the ACT which shall be

dealt with in accordance with Sections 30D to 30P of the ACT.

16.4 The EMPLOYER, the TRUSTEES (or one or more of their number),

or any other person having a complaint or dispute of fact or law

shall, notwithstanding anything to the contrary in these RULES,

have the right to invoke the complaint procedures in accordance

with the ACT.

16.5 Explanations or references (following a cross reference to a specific

Rule) are intended as a reference aid for convenience purposes

and shall not be used in the interpretation of these RULES.

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17. MISCELLANEOUS PROVISIONS

17.1 (a) Subject to payment of such fee as the TRUSTEES may

require, a MEMBER shall be entitled on application to a

copy of any of the documents referred to in Section 35(1)

of the ACT.

(b) A MEMBER shall be entitled on application to inspect

without charge a copy of any of the documents referred to

in Section 35(2) of the ACT and to make extracts

therefrom.

17.2 (a) Payment of each benefit in terms of these RULES shall

be made to the person entitled thereto by means of

electronic transfer into the bank account of such person to

a bank registered in terms of the Banks Act, 1990, as

amended.

(b) At the request of the BENEFICIARY, payment may be

made in some other manner agreed upon by the

BENEFICIARY and the TRUSTEES, including

(i) payment at the registered office of the FUND; or

(ii) postage by registered mail or by such other

means as agreed to by the TRUSTEES.

(c) Payment in terms of (a) or (b) shall constitute full and final

settlement of all claims to the benefit against the FUND

and neither the FUND, the TRUSTEES nor the

ADMINISTRATORS shall have any further liability for the

benefit to any person.

- 106 -

17.3 All benefits and rights to benefits in terms of these RULES shall be

subject to the prohibitions as to reduction, cession, etc. contained in

Sections 37A and 37B of the ACT.

17.4 The ADMINISTRATORS shall maintain a separate record in

respect of benefits due under the FUND which have not been

claimed. Subject to the provisions of the ACT any such benefit shall

be dealt with in the manner set out below:

(a) if a potential BENEFICIARY approaches the FUND at any

stage the TRUSTEES shall consider his claim and if the

circumstances so warrant, shall pay to the BENEFICIARY

that part of the benefit, increased by such interest as they

may allow, that as at the date of payment to the

BENEFICIARY is in excess of any costs incurred by the

FUND in the administration of such benefit and any

amount referred to in Rule 17.9 (cost of tracing

BENEFICIARIES);

or

(b) if so decided by the TRUSTEES, that part of the benefit,

increased by such interest as they may allow, that as at

the date of transfer in terms of this Rule is in excess of

any costs incurred by the FUND in the administration of

such benefit and any amount referred to in Rule 17.9

(cost of tracing BENEFICIARIES) may be transferred to a

national fund established by legislation for the purpose of

housing unclaimed benefits, or to a FUND established by

an administrator for the same purpose.

17.5 Each MEMBER must produce evidence of age acceptable to the

TRUSTEES and must also give such other information as the

TRUSTEES may reasonably require for the purposes of the FUND.

- 107 -

17.6 Nothing in these RULES shall in any way restrict the right of the

EMPLOYER to terminate the employment of any MEMBER or

affect any agreement between the EMPLOYER and an employee in

regard to conditions of SERVICE.

17.7 No person shall have any claim concerning the FUND either upon

the FUND or against the EMPLOYERS, except in accordance with

these RULES.

17.8 Admission to membership of the FUND shall be regarded as an

acknowledgement by the MEMBER that he agrees that these

RULES, including any alteration to these RULES, shall be binding

upon him and upon any person claiming to derive a benefit under

the FUND by virtue of his membership.

17.9 If any costs are incurred as a consequence of the TRUSTEES

tracing any potential beneficiaries whose benefits due under the

FUND are unclaimed or in order to give effect to the provisions of

Section 37C of the ACT, such reasonable costs may be recovered

from the benefits payable to such beneficiaries.

17.10 Subject to the requirements of the REVENUE AUTHORITIES as

specified from time to time and to the payment by the EMPLOYER

of such additional contribution, or contributions, as the TRUSTEES

after consulting the ACTUARY may decide to be necessary, the

TRUSTEES, with the agreement of the EMPLOYER, may direct

that any benefit payable to or in respect of any MEMBER be

increased on such basis as shall be determined in consultation with

the ACTUARY.

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18. SPECIAL PROVISIONS APPLICABLE TO PAYMENT OF SETTLEMENT

AMOUNTS

Any amounts received by the FUND arising from settlement payments made

to the FUND which are not retained for any other purpose shall be distributed,

in such proportions as the TRUSTEES may decide, in order to increase the

benefits payable to such MEMBERS, and/or paid to such former MEMBERS

and PENSIONERS as the TRUSTEES may determine. The following shall

apply:

(a) in the case of a MEMBER, any such amount shall be credited to his

FUND CREDIT;

and

(b) in the case of a former MEMBER or PENSIONER (if applicable),

any such amount shall be paid to such former MEMBER or

PENSIONER’S last known verifiable bank account as a lump

sum; provided that in the case of a former MEMBER, if the bank

account cannot be verified or is unknown and the TRUSTEES are

not notified of payment details in respect of a former MEMBER,

any such amount may be transferred to a national fund

established by legislation for the purpose of housing unclaimed

benefits, or to a FUND established by an administrator for the

same purpose.

- 109 -

APPENDIX 1

OPTION PROVIDED TO DEFINED BENEFIT ENTITLED MEMBERS

1. Notwithstanding any other provisions contained in these RULES, a

DEFINED BENEFIT ENTITLED MEMBER who becomes entitled to a

benefit in terms of Rule 5.2.1 (rule providing for early retirement),

Rule 5.2.2 (rule providing for retirement at NORMAL RETIREMENT

DATE) or Rule 5.2.4 (rule providing for late retirement) shall be entitled to

elect either:

(a) to receive a benefit in terms of Rule 5.1 (fund credit payable on

retirement); or

(b) to receive a retirement benefit determined in accordance with

Rule 20, (amount of PENSION) Rule 22 (retirement at

pensionable age), Rule 23 (late retirement), Rule 24 (early

retirement) and Rule 25 (commutation) of the OLD RULES and

that the benefits payable on his death shall be determined in

accordance with Rule 26 (death benefits) of the OLD RULES of

the FUND.

The Defined Benefit Member shall be required to make an election:

(i) in the case of a Defined Benefit Member who is allowed to remain

in SERVICE after his NORMAL RETIREMENT DATE, on

reaching his NORMAL RETIREMENT DATE in terms of

Rule 5.2.5 (rule requiring a DEFINED BENEFIT ENTITLED

MEMBER who remains in SERVICE after NORMAL

RETIREMENT DATE to elect benefits in terms of Appendix 1 on

reaching his NORMAL RETIREMENT DATE): or

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(ii) in the case of any other Defined Benefit Member, within three

months of leaving the SERVICE of the EMPLOYER, or within

three months of being informed by the TRUSTEES of his options

if later.

Should the DEFINED BENEFIT ENTITLED MEMBER not make an election,

he shall be deemed to have elected the benefit in terms of Rule 7.1 (FUND

CREDIT payable on withdrawal) of the main RULES and not the benefits

referred to in clause (b) above and he shall cease to be a DEFINED

BENEFIT ENTITLED MEMBER.

(The provisions of Rule 20, Rule 22, Rule 23, Rule 24, Rule 25 and

Rule 26 of the OLD RULES are set out in Appendix 3 to these RULES)

2. The provisions of Rule 7.3 shall apply if a DEFINED BENEFIT ENTITLED

MEMBER becomes entitled to a benefit in terms of Rule 7 and elects to

preserve his benefit.

3. Additional voluntary contributions made after the CONVERSION DATE in

terms of Rule 4.1.2 (option to make additional voluntary contributions)

shall be ignored in the calculations (for purposes of clarification only) on

which the election in Clause 1 or Clause 2 is based but shall be applied to

supplement benefits in terms of Clause 1 and Clause 2 above.

4. In the event that the OLD RULES are at variance with any change in

legislation which takes place after the CONVERSION DATE, such change

in legislation shall override the provisions of the OLD RULES.

5. (a) The following definition shall apply for the purposes of this Clause

5 and Clause 6 and 7 below:

“Defined Benefit Pensionable Emoluments” shall mean in relation

to a DEFINED BENEFIT ENTITLED MEMBER the percentage of

his TOTAL COST OF EMPLOYMENT which applied at the

REMUNERATION CONVERSION DATE;

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(b) It is specifically provided that if a DEFINED BENEFIT ENTITLED

MEMBER either:

(i) is regarded as a CATEGORY 1 MEMBER, due to the

operation of Rule 4.2.1 (a) (EMPLOYER’S contributions)

of the main body of the RULES, or

(ii) elects a PENSIONABLE VALUE lower than his Defined

Benefit Pensionable Emoluments; or

(iii) due to the operation of proviso (iii) to Rule 4.2.1(provision

for the MEMBER and EMPLOYER to agree that the

MEMBER may change his category of membership), falls

into a contribution category that provides for the combined

MEMBER and EMPLOYER rate of contribution to be

lower than the rate at which contributions were made in

respect of such MEMBER immediately prior to the

REMUNERATION CONVERSION DATE;

(iv) makes an election in terms of Rule 13.1.8 (option to elect

individual choice of investments) of the main RULES;

he shall not be entitled to elect a benefit in terms of the OLD

RULES as contemplated in Clause 1 above and Clause 2 above.

6. Notwithstanding the provisions of the main body of the RULES, if a

MEMBER elects a benefit in terms of the OLD RULES as contemplated in

Clause 1 and Clause 2 above, his Pensionable Emoluments for the

purposes of calculating the benefit shall be his Defined Benefit

Pensionable Emoluments and for the purposes of the calculation, he shall

be regarded as a CATEGORY 2 MEMBER.

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7. If a MEMBER elects a PENSIONABLE VALUE that is higher than his

Defined Benefit Pensionable Emoluments and/or is regarded as a

CATEGORY 3 MEMBER, a CATEGORY 4 MEMBER, a CATEGORY 5

MEMBER or a CATEGORY 6 MEMBER due to the operation of Rule 4.2.1

(a) (EMPLOYER’S contributions) of the main body of the RULES and

elects a benefit in terms of the OLD RULES as contemplated in Clause 1

and Clause 2 above, the contributions toward retirement funding made in

respect of him that are in excess of those that would have applied if he

had been a CATEGORY 2 MEMBER with a PENSIONABLE VALUE equal

to his Defined Benefit Pensionable Emoluments shall be regarded as

additional voluntary contributions and shall be applied to provide additional

PENSION as contemplated in Rule 4.1.4. (application of additional

voluntary contributions by MEMBERS).

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APPENDIX 2

DELETED – AMENDMENT 4 - 2015

- 114 -

APPENDIX 3

Benefits payable in terms of the RULES as they applied prior to 1 September

1996

1. It is specifically provided that for the purposes of this Appendix, the term

PENSIONER shall have the following meaning:

“PENSIONER” shall mean a person in receipt of a PENSION paid from the

FUND who may be either:

(a) a retired MEMBER who retired from the FUND prior to the

CONVERSION DATE; or

(b) a former Deferred Pensioner who became a Deferred Pensioner

prior to the CONVERSION DATE;

(c) a DEFINED BENEFIT ENTITLED MEMBER who elected that his

benefit on retirement or on leaving SERVICE if he decides to

become a DEFINED BENEFIT DEFERRED PENSIONER be

determined in accordance with the provisions of the OLD RULES as

set out in this Appendix.

2. Relevant definitions from the RULES in force prior to 1 September 1996

(The definitions included below are only those which have direct relevance to

the extracts from the RULES in force prior to September 1996. It is

specifically provided that any reference to ‘Committee’ in the definitions

quoted below shall be read as a reference to ‘TRUSTEES’).

“Accumulated Contributions” shall mean, for any MEMBER, the sum of:

(i) his total Contributions;

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(ii) one-third of one per cent for each complete month for which he has

paid contributions to the FUND;

(iii) in the case of a Deferred Pensioner, eight-twelfths of one per cent of

the total of items (i) and (ii) for each complete month from the date of

becoming a Deferred Pensioner up to the date of ceasing to be a

Deferred Pensioner.

“Benefit Fund” shall mean the Altron Group Benefit Fund.

“Contributions” shall mean, for any MEMBER, the amounts paid or payable

by him to the FUND, exclusive of interest.

“Deferred Pensioner” shall mean a former MEMBER prospectively entitled

to a PENSION in terms of Rule 30 (provisions applicable to deferred

pensioners).

“Eligible Child” shall mean the child of a MEMBER, Deferred Pensioner or

PENSIONER, who may be:

(i) a posthumous child; or

(ii) a stepchild or a child born out of wedlock, who was dependent on

the MEMBER, Deferred Pensioner or PENSIONER; or

(iii) an adopted child on proof of adoption to the satisfaction of the

Committee;

provided the child has not been married and:

(a) (i) is under the age of 18 years; or

- 116 -

(ii) is under the age of 25 years and is, in the opinion of the

Committee, receiving full-time education; or

(iii) is on national service; or

(iv) is, in the opinion of the Committee, permanently incapacitated

by reason of physical or mental infirmity from supporting

himself; and

(b) (i) if the child of a Deferred Pensioner or PENSIONER who was

a Deferred Pensioner, was a child as specified above when

the MEMBER left the service or was born of a marriage

subsisting when he left the service; or

(ii) if the child of a PENSIONER who was not a Deferred

Pensioner, was a child as specified above when the

PENSIONER retired or was born of a marriage subsisting

when he retired;

provided further that a child who is on national service shall not be included

in the number of eligible children in respect of whom a PENSION is

calculated from time to time.

“Eligible Spouse” shall mean

(a) the spouse of a MEMBER; or

(b) the spouse of a Deferred Pensioner or a PENSIONER who was a

deferred pensioner before his pension became payable who was

married to him when he became a deferred pensioner; or

(c) the spouse of a PENSIONER other than a former Deferred

Pensioner who was married to him when he retired on pension;

- 117 -

provided that:

(i) if a MEMBER has more than one legal spouse, by whatsoever rites

married, the spouse has been nominated by the MEMBER as his

senior spouse, or failing nomination was, in the opinion of the

Committee, his senior spouse;

(ii) the Committee may, in its absolute discretion, determine that some

other person with whom the MEMBER, Deferred Pensioner or

PENSIONER was living as man and wife at the time of his death,

becoming a Deferred Pensioner or on retirement on PENSION,

respectively is his eligible spouse; and

(iii) no person shall be an eligible spouse unless she was being

maintained by the MEMBER, Deferred Pensioner or PENSIONER at

the date of his death.

“Final Average Emoluments” shall mean, for a MEMBER, the annual

average of his Pensionable Emoluments over the twelve month period in

the last five years of Pensionable Service in which his Pensionable

Emoluments were highest, or over the whole of his Pensionable Service, if

less than twelve months; provided that if a MEMBER has been employed

part-time during his period of Pensionable Service ;

(i) for the purpose of calculating his Final Average Emoluments, his

Pensionable Emoluments during the period of part-time employment

shall be divided by the Part-Time Ratio; and

(ii) for the purpose of calculating any part of a PENSION is based on

Pensionable Service while in part-time employment, his Final

Average Emoluments so calculated shall be multiplied by the Part-

Time Ratio.

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“Participation Date” shall mean, for an EMPLOYER and his employees, the

date as from which the EMPLOYER participates in the FUND.

“Part-time Ratio” shall mean, for a MEMBER who is employed part-time,

the proportion that the number of hours that he is engaged to work in each

normal week bears to the number of hours that a MEMBER who is

employed full-time is engaged to work in each normal week, as determined

by his EMPLOYER.

“Pension” shall mean an annual sum payable to a retired MEMBER or a

former MEMBER or spouse or child in terms of these RULES.

“Pensionable Age” shall mean the age on the last day of the month in which

a MEMBER attains the age of 65 years; provided that the EMPLOYER may

in individual cases fix an earlier Pensionable Age, which shall not be less

than 60 years.

“Pensionable Emoluments” shall mean, for a MEMBER, his basic salary or

wages, plus an amount determined from time to time by the EMPLOYER in

lieu of all other remuneration; provided that:

(i) in calculating benefits in respect of a MEMBER who has made an

election in terms of Rule 16 (option for a MEMBER whose salary has

been reduced to contribute to the FUND on the basis of his salary

before the reduction), his Pensionable Emoluments during the period

of reduction shall be the Pensionable Emoluments that he was

receiving immediately before the reduction; and

(ii) for a MEMBER to whom the provisions of Rule 15(4) (provisions

applicable to a MEMBER in receipt of a disability income benefit)

apply, his Pensionable Emoluments during the period he is in receipt

of a disability benefit from the Benefit Fund shall be the amount upon

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which contributions received during the period are based.

“Pensionable Service” shall mean, for a MEMBER, and subject to the

provisions of these RULES,

(i) such period before the participation date as the TRUSTEES decide;

(ii) such period before the date of becoming a MEMBER as his

EMPLOYER decides;

(iii) such period as is made Pensionable in terms of Rule 28(4) (transfer

of Pensionable Service from other arrangements for retirement

funding); and

(iv) the period during which he has been continuously in the SERVICE

after the date of becoming a MEMBER;

provided that :

(a) the TRUSTEES may condone a break in SERVICE so that

SERVICE before the break is deemed to be continuous with service

after the break;

(b) in respect of a MEMBER on 31st January 1973 who had elected to

be subject to the RULES in force on 31st December 1968 and who

then re-elected to be subject to the RULES in force on 1st January

1973, only one-half of the period between 1st January 1969 and 31st

December 1972 during which the MEMBER was continuously in the

SERVICE shall be regarded as Pensionable Service;

(c) any period of SERVICE or absence without payment of contributions

after 1st August 1975, or the participation date if later, shall be

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excluded; and

(d) the TRUSTEES may require the EMPLOYER to make a special

payment to the FUND to meet the cost of any period of Pensionable

Service granted in terms of items (i) and (ii).

Pensionable Service shall be calculated in years, completed months and

days.

“SERVICE” shall mean employment with one or more EMPLOYERS and,

for a MEMBER who became a MEMBER before 1st November 1976, shall

include employment in the United Kingdom before the date of becoming a

MEMBER with any company or organisation associated with Standard

Telephones and Cables (South Africa) Limited; such employment in the

United Kingdom by a MEMBER who became a MEMBER on or after 1st

November 1976 and employment elsewhere before the date of becoming a

MEMBER by any company or organisation associated with an EMPLOYER

shall only be SERVICE if it is made pensionable in terms of Rule 28(4)

(transfer of pensioner service from other arrangements for retirement

funding).

3. Extracts from the RULES in force prior to 1 September 1996

(It is specifically provided that:

(a) only those RULES which are relevant to the benefits payable to

MEMBERS and PENSIONS to whom this Appendix applies are

quoted below;

(b) any reference to a Rule which is not quoted below is a reference to a

Rule contained in the RULES in force prior to 1 September 1996 but

which is not directly relevant to the benefits payable to such

MEMBERS and PENSIONERS;

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(c) any reference to ‘Committee’ in the RULES quoted below shall be

read as a reference to ‘TRUSTEES’).

PENSION Benefits

PENSION

20. Subject to the provisions of these RULES, the pension granted to a

retiring MEMBER shall be equal to one forty-fifth of his Final Average

Emoluments for each year of his Pensionable Service (subject to a

maximum of his Final Average Emoluments), less, if his SERVICE in

the United Kingdom has been made Pensionable Service in the

FUND, any PENSION to which he may become entitled under the

STC (U.K.) Plan and less any amount deducted in terms of

Rule 41(3) (benefits may be reduced by any amounts payable by a

national fund, if applicable) .

Retirement at the Pensionable Age

22. (1) A MEMBER who has attained the Pensionable Age shall

retire from the SERVICE; provided that he may, if he and his

EMPLOYER agree, continue in the service for a further

period.

(2) If a MEMBER retires or is retired from the service on attaining

the Pensionable Age, he shall, subject to the provisions of

Rule 25A (option to elect an alternative pension) , as from the

date of his retirement, be entitled to a pension calculated in

terms of Rule 20 (amount of pension on retirement at

Pensionable Age).

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Late retirement

23. (1) If a MEMBER retires or is retired from the SERVICE after

attaining the Pensionable Age and has not paid contributions

since attaining that age, he shall be entitled, as from the date

of his retirement, to a PENSION calculated in terms of

Rule 20 (amount of pension on retirement at Pensionable

Age) the date he attained the Pensionable Age and increased

by three-quarters of one per cent for each complete month by

which his age at retirement exceeds the Pensionable Age.

The PENSION shall also be increased by the same

percentage as pensions are increased in terms of Rule 21

(pension increases) between the date the MEMBER attained

the pensionable age and the date of his retirement.

(2) If a MEMBER retires or is retired from the service after

attaining the Pensionable Age and has continued to pay

contributions to the date of retirement, he shall be entitled, as

from the date of his retirement to a PENSION calculated in

terms of Rule 20 (amount of pension on retirement at

Pensionable Age) in respect of his Pensionable Service to the

date of retirement increased by two-fifths of one per cent for

each complete month by which his age at retirement exceeds

the Pensionable Age.

Early retirement

24. Notwithstanding the provisions of Rule 22 (retirement at Pensionable

Age), a MEMBER who has not less than five years’ Pensionable

Service may retire after attaining an age ten years less than the

Pensionable Age, in which case he shall be entitled, as from the date

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of his retirement, to a pension in respect of his Pensionable Service

to the date of retirement calculated in terms of Rule 20 (amount of

pension on retirement at Pensionable Age) reduced by a

percentage determined by the ACTUARY.

Commutation of PENSION

25. (1) The TRUSTEES, in their absolute discretion, may commute

for a lump sum –

(a) the whole of a PENSION payable to a retiring

MEMBER that does not exceed the maximum amount

that may be totally commuted in terms of the Income

Tax Act; or

(b) at the request of a retiring MEMBER whose pension

exceeds that maximum amount, not more than one-

third of his pension;

The amount of the lump sum shall be calculated by the

ACTUARY.

(2) If a PENSION is commuted in terms of paragraph (a) of

section (1), no PENSION or lump sum benefit shall be

payable to the Eligible Spouse or Eligible Children or

DEPENDANTS or estate of the member, and this shall be

allowed for in assessing the lump sum.

(3) If part of a PENSION is commuted in terms of paragraph (b)

of section (1), the PENSION, and lump sum benefit based on

the MEMBER’S pension, that may become payable to the

Eligible Spouse or Eligible Children or DEPENDANTS or

estate of the MEMBER shall be unaffected, and this shall be

allowed for in assessing the lump sum.

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Death

26. (1) If a MEMBER dies in the SERVICE before attaining the

Pensionable Age and leaves an Eligible Spouse, she shall,

subject to the provisions of sections (15) (payment to a

nominee) and (16) (AIDS restrictions), be entitled to:

(a) a lump sum equal to twice his annual pensionable

emoluments at the date of his death; and

(b) a PENSION equal to six-tenths of the PENSION to

which he would have been entitled if he had remained

in the SERVICE to the Pensionable Age and his

Pensionable Emoluments had remained unchanged.

(2) If a MEMBER dies in the SERVICE after attaining the

Pensionable Age and leaves an Eligible Spouse, she shall,

subject to the provisions of section (15) (payment to a

nominee), be entitled to:

(a) a lump sum equal to one-third of the PENSION to

which he would have become entitled if he had retired

on the day of his death; and

(b) a lump sum equal to the amount to which he would

have been entitled if he had retired on the day of his

death and one-third of his PENSION had been

commuted in terms of Rule 25(1)(b) (commutation of

one third of the PENSION) ; and

(c) a PENSION equal to six-tenths of the PENSION to

which he would have become entitled if he had retired

on the day of his death.

(3) Subject to the provisions of section (15) (payment to a

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nominee), if a PENSIONER dies and leaves an ELIGIBLE

SPOUSE, she shall be entitled to a lump sum equal to one-

third, and a pension equal to six-tenths, of the PENSION

which he would have been receiving at the date of his death if

no portion had been commuted in terms of Rule 25

(commutation) and no reduction had been made in terms of

Rule 24 (early retirement). (Amd 1 - 2012)

(4) If a MEMBER or a PENSIONER dies and leaves Eligible

Children, a PENSION shall be granted in respect of them

equal to one-quarter of the PENSION payable to his Eligible

Spouse for each such child up to three in number; provided

that if no Eligible Spouse is left, the children’s PENSION shall

be twice that which would have been granted had an Eligible

Spouse been left and they shall also, subject to the provisions

of section (15), (payment to a nominee) be entitled to the

lump sum that would have been paid to an Eligible Spouse.

(5) The PENSION payable to an Eligible Spouse shall cease on

death; in which event any PENSION payable in respect of the

Eligible Children of the predeceased spouse shall be doubled.

(6) When a child ceases to be an Eligible Child, the PENSION

payable in respect of him shall cease, and the PENSION

payable in respect of any other Eligible Child or Children shall

be recalculated in accordance with section (4).

(7) The PENSION payable in respect of any Eligible Children

shall normally be paid to their surviving parent; provided that

the TRUSTEES may, in their absolute discretion, apportion

the pension amongst the children and pay any child’s pension

to him direct or to such person on his behalf as it thinks fit.

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(8) If before attaining the Pensionable Age a MEMBER dies

leaving neither an Eligible Spouse nor an Eligible Child, there

shall be granted to his DEPENDANTS (if any), subject to the

provisions of section (11) (discretion of Committee regarding

payment), a benefit equal to the greater of:

(a) his Contributions; or

(b) an amount equal to twice his annual Pensionable

Emoluments at the date of his death.

(9) If after attaining the Pensionable Age a MEMBER dies in the

SERVICE leaving neither an Eligible Spouse nor an Eligible

Child, there shall be granted to his DEPENDANTS (if any),

subject to the provisions of section (11) (discretion of

Committee regarding payment), a benefit equal to:

(a) his Accumulated Contributions; and

(b) a lump sum equal to one-third of the PENSION to

which he would have been entitled if he had retired in

terms of Rule 23 (late retirement) on the date of his

death.

(10) If a PENSIONER dies leaving neither an Eligible Spouse nor

an Eligible Child, there shall be granted to his DEPENDANTS

(if any), subject to the provisions of section (11) (discretion of

Committee regarding payment), a benefit equal to –

(a) the excess (if any) of his Accumulated Contributions

over the total payments of PENSION and commutation

of PENSION made to him; and

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(b) a lump sum equal to one-third of the PENSION which

he was receiving at the date of his death, or which he

would have been receiving if no portion had been

commuted in terms of Rule 25 (commutation).

(11) For the purposes of sections (8) (death before Pensionable

Age without leaving a spouse or child), (9) (death after

Pensionable Age without leaving a spouse or child) and (10)

(death after retirement without leaving a spouse or child) if a

MEMBER has made a nomination in terms of Rule 11(2), the

Committee may, in its absolute discretion and subject to the

provisions of section 37C of the ACT, pay the lump sum to the

DEPENDANT(S) or the nominee(s) in such proportions as it

deems fit.

(12) If no DEPENDANT has been traced within twelve months of

the death of a MEMBER or PENSIONER, it shall be assumed

that no DEPENDANT exists and the benefit specified in

section (8) (death before Pensionable Age without leaving a

spouse or child), (9) (death after Pensionable Age without

leaving a spouse or child) and (10) (death after retirement

without leaving a spouse or child) shall be dealt with

according to the provisions of section 37C of the ACT and

there shall, thereafter, be no further claim on the FUND in

respect of him.

(13) If, when the last payment of PENSION is made to the eligible

spouse and children of a deceased MEMBER or

PENSIONER, the total amount paid to or in respect of him is

less than would have been paid if he had left only

DEPENDANTS other than an eligible spouse or children, the

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shortfall shall be paid in accordance with the provisions of

section 37C of the ACT.

(14) The Committee shall have power to effect with a registered

insurer and to keep in force a group life assurance policy on

the lives of members for amounts recommended from time to

time by the ACTUARY.

(15) Notwithstanding the provisions of sections (1) (death before

Pensionable Age leaving no spouse), (2) (death after

Pensionable Age leaving a spouse), (3) (death after

retirement leaving a spouse), and (4) (death after retirement

leaving children), if a MEMBER has made a nomination in

terms of Rule 11(2) the Committee may, in its absolute

discretion and subject to the provisions of section 37C of the

ACT, pay the lump sum in such proportions as it deems fit to

one or more of the following: an eligible child, a DEPENDANT

and any other person nominated by the MEMBER.

(16) Notwithstanding the provisions of section (1) (death after

retirement leaving a spouse), if, in the opinion of the

Committee, death was due to a condition caused or

accelerated, directly or indirectly, by AIDS the lump sum

payment shall not be made unless the Committee in its

absolute discretion otherwise decides; provided that the

provisions of this section shall not apply if, in the opinion of

the Committee, AIDS was contracted in the course of duty.

Transfer into the FUND

28. (4) If in respect of a MEMBER an amount is transferred to the

FUND from a pension or provident fund, or is paid from any

other source, the Committee may permit a period to be

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reckoned as Pensionable Service on terms determined by the

Committee after consulting the ACTUARY; provided that the

amount so transferred or paid shall be sufficient to meet the

increase in the FUND’S liabilities, as a result of crediting the

Pensionable Service, as determined by the ACTUARY on the

basis used for the last statutory valuation of the FUND.

Deferred PENSION

30. (1) When a MEMBER becomes entitled to a benefit in terms of

Rule 28A (retrenchment or reorganization) or Rule 29

(dismissal) , otherwise than on dismissal for misconduct, he

shall have the right, provided that he has completed five

years’ pensionable service, to elect instead to become a

deferred pensioner and to receive from the pensionable age a

pension calculated in terms of Rule 20 (amount of pension on

retirement at Pensionable Age) in respect of his pensionable

service up to the date of leaving the service; provided that

when he has attained the age of 55 years the provisions of

Rule 24 (early retirement) and 25A (option to elect an

alternative pension) shall apply mutatis mutandis. The

provisions of Rule 25 (commutation) shall apply to such

pension when it becomes payable.

(2) If a MEMBER who has elected to become a deferred

pensioner in terms of section (1) dies before or after the

pension becomes payable, the provisions of Rule 26 (death

benefits) shall apply, as if his pension had become payable on

the day before the date of his death on attainment of the

Pensionable Age if he dies before his pension becomes

payable.

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APPENDIX 4

SPECIAL PROVISIONS APPLICABLE TO MEMBERS WHO TRANSFER FROM

THE BATTERY TECHNOLOGY (PTY) LTD PENSION FUND

1. The following definition of “NORMAL RETIREMENT DATE” shall apply for the

purposes of this Appendix 5.

“NORMAL RETIREMENT DATE” shall mean the last day of the month in

which he attains the age of 65 years in the case of a MEMBER who

transferred from the Battery Technology (Pty) Ltd Pension Fund.

2. Rule 9.1.3 shall be added to Rule 9.1 for the purposes of this Appendix:

9.1.3 If a group of MEMBERS transfers to the FUND from the Battery

Technology (Pty) Ltd Pension Fund, the FUND shall receive the

amount payable to the FUND in respect of each such MEMBER.

Such amount shall be the MEMBER’S full benefit entitlement

under the Battery Technology (Pty) Ltd Pension Fund and shall

be allocated to the MEMBER’S FUND CREDIT.

I N D E X

CONTENTS PAGE

1. GENERAL 1

2. DEFINITIONS 2

3. MEMBERSHIP 18

4. CONTRIBUTIONS AND ACCOUNTING STRUCTURE 21

4.1 Contributions by the MEMBER 21

4.2 Contributions by the EMPLOYER 22

4.3 Contributions Paid to the FUND 28

4.4 Accounting Structure 29

5. RETIREMENT BENEFITS 44

5.1 Amount of PENSION 44

5.2 Retirement 44

5.3 Payment of PENSION 45

5.4 Commutation 50

6. DEATH BENEFITS 51

6.1 Benefits Payable on Death in SERVICE prior to

NORMAL RETIREMENT DATE 51

6.2 Benefits Payable on Death in SERVICE after

NORMAL RETIREMENT DATE 55

6.3 Death of a PENSIONER 56

6.4 Restriction of Benefits 58

6.5 Commutation and PENSION Payable to QUALIFYING

SPOUSE or QUALIFYING CHILD 60

6.6 Payment of PENSIONS to BENEFICIARIES, QUALIFYING

SPOUSES and QUALIFYING CHILDREN 60

6.7 Payment of Death Benefits 63

CONTENTS PAGE

7. TERMINATION OF SERVICE 64

7.1 Benefit 64

7.2 Payment of Benefit 64

7.3 Provisions applicable to DEFINED BENEFIT

DEFERRED PENSIONERS 65

7.4 Provisions applicable to DEFINED CONTRIBUTION

DEFERRED PENSIONERs 66

8. ABSENCE 68

9. TRANSFERS 70

9.1 Transfers into the FUND 70

9.2 Transfers out of the FUND 70

10. TERMINATION AND PARTIAL TERMINATION OF THE FUND 73

10.1 Termination of the FUND 73

10.2 Partial Termination 76

11. DEDUCTION FROM BENEFITS 78

12. MANAGEMENT OF THE FUND 80

12.1 TRUSTEES 80

12.2 EMPLOYERS’ TRUSTEES 80

12.3 MEMBERS’ and PENSIONERS’ TRUSTEES 81

12.4 Disqualification from holding office as TRUSTEE 83

12.5 Meetings of TRUSTEES 84

12.6 Meetings of MEMBERS 85

12.7 Other Appointments 86

12.8 Indemnification of Officers of the FUND 87

12.9 Sub-Committees 87

CONTENTS PAGE

13. FINANCIAL PROVISIONS 89

13.1 Investments 89

13.2 Housing Loans 94

13.3 Expenses 94

13.4 Accounts 94

13.5 Actuarial Valuations 94

13.6 Late payment Interest on Benefits 95

14. ADMINISTRATION OF THE FUND 97

15. ALTERATIONS 98

16. INTERPRETATION OF RULES AND DISPUTES 99

17. MISCELLANEOUS PROVISIONS 100

18 SPECIAL PROVISIONS APPLICABLE TO PAYMENT OF 103

SETTLEMENT AMOUNTS

APPENDIX 1 : OPTION PROVIDED TO DEFINED

BENEFIT ENTITLED MEMBERS 104

APPENDIX 2 : SPECIAL PROVISIONS APPLICABLE TO

NAMPAK MEMBERS 108

APPENDIX 3 : BENEFITS PAYABLE IN TERMS OF THE RULES AS

THEY APPLIED PRIOR TO 1 SEPTEMBER 1996 115

APPENDIX 4 : SPECIAL PROVISIONS APPLICABLE TO 131

MEMBERS WHO TRANSFER FROM THE

BATTERY TECHNOLOGY (PTY) LTD PENSION FUND

ALTRON GROUP PENSION FUND€¦ · 1.1 A fund known as the Altron Group Pension Fund was established...

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