SECTION 4.4
RETIREMENT / PROVIDENT FUND
4.4.aPOLICY STATEMENT
1.Objective
1.1To define the terms and conditions relating to the pension fund benefit.
2.Policy
2.1All permanent employees will become eligible to join the Fund on the first of the month in which case they are within the following category:
All employees aged less than 63 years.
2.2Contributions
2.2.1Each member will contribute at a rate as determined by the Trustees from time to time, from his/her pensionable salary each month.
2.2.2Members will contribute 5% or 7.5% of his/her pensionable salary. All new employees will contribute 7.5% of their pensionable salary towards the Pension Fund
All existing members have the option on an annual basis to increase their contributions from 5% to 7.5%.
2.2.3The Company will contribute at a rate as determined of each member’s pensionable salary each month or at a rate determined by the Trustees from time to time.
2.2.4The Company contributes 7.5% for all employees
2.3The normal retirement date is defined as the first of the month coincident with or, if not coincident with, following the sixty-third birthday of the member/employee.
2.4With the Trustees’ consent a member may retire either during the ten years before normal retirement date or at any time on grounds of serious ill-health. In either event, he shall be entitled to a pension, payable immediately, secured by his fund credit.
2.5Retirement Options
The employee will retire in the month following his/her sixty-third birthday.
On retirement you will receive your full Fund Credit as at the date of retirement. You may draw up to one third of this amount as cash. The balance has to be invested with a registered insurer to fund a monthly pension for life.
2.6The following categories of employees will be exempt from the Pension Fund:
2.6.1International employees.
2.6.2Any employee recruited or transferred from outside the borders of RSA and who wishes to maintain his/her Pension Fund membership in his/her country of origin may do so, and provided proof of such membership can be produced on an annual basis.
4.4.bPROCEDURE
4.4.cGENERAL INFORMATION
The policy does not contain all the legal provisions of the official rules and therefore if any disputes arise, these may be referred to the official rules of the Fund.
4.4.dDOCUMENTATION
(i)Pension Fund Summary of benefits.
RETIREMENT FUND - SUMMARY OF BENEFITS
Who is eligible to join the Retirement Fund ?
All permanent employees between the ages of 18 and 63 must join the Fund.
When do I retire?
Your normal retirement date is the first date of the month following attainment of the age of 63 in respect of all members.
How much do I contribute?
You will contribute 5% / 7.5% of your monthly salary towards retirement.
How much does International Healthcare Distributors contribute?
Your employer will contribute 7.5% of your pensionable salary towards retirement funding. In addition, the costs of your death and disability benefits as well as the administration costs of the various arrangements will be paid by International Healthcare Distributors (Pty) Ltd.
How is my “equitable share of fund” calculated?
Your “share of fund” is the sum of the following :
-All your own contributions to the Fund
-All your employers contributions to the Fund
-Investment return earned by the Fund
What benefit do I receive if I leave service?
If you leave service before normal retirement date you will receive your Fund credit.
Who is responsible for looking after the Retirement Fund?
NMG Levy Consultants and Actuaries are the consultants to the Fund and Alexander Forbes are responsible for the administration of the Fund.
Are there any benefits payable in the event of my death?
In the event of your death the following will be payable :
-A lump sum equal to 3 times your annual pensionable salary
PLUS
-Your fund credit
What happens if I am disabled?
If you become temporarily or permanently disabled whilst in service you will receive a monthly income, commencing after a 3 month waiting period from the date of disablement equal to 75% of your monthly salary.
Payment of this benefit will cease on the earlier of your death or retirement at age 63. Payment will also cease if you recommence or are capable or recommencing work either with International Healthcare or any other employer.
During disablement you will remain a member of the Retirement Fund and will continue to contribute. You will also still enjoy life cover under the Fund.
N.B
Please note that this summary does not contain all the legal provisions of the official rules and therefore if any disputes arise, these must be referred to the official rules of the Fund.
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