Agtiende Algemene Jaarvergadering wat gehou sal word in die Ouditorium, Metropolitan Hoofkantoor, Mispelstraat, Bellville Vrydag, 19 April :00

Transcription

1 Agtiende Algemene Jaarvergadering wat gehou sal word in die Ouditorium, Metropolitan Hoofkantoor, Mispelstraat, Bellville Vrydag, 19 April :00 Eighteenth Annual General Meeting to be held in the Auditorium, Metropolitan Head Office, Mispel Road, Bellville Friday, 19 April :00

2 C O N T E N T S P. I N H O U D Agenda 1 Agenda Minutes of Seventeenth Annual General Meeting 2 Notule van Sewentiende Algemene Jaarvergadering Annexures to Minutes 19 Bylaes tot Notule Report of the Board of Trustees 54 Verslag van die Raad van Trustees Audited Financial Statements 57 Geouditeerde Finansiële State Motions submitted 94 Mosies voorgelê

3 EIGHTEENTH MEETING OF THE GENERAL COMMITTEE Notice is hereby given that the meeting of the General Committee will be held on Friday 19 April 2002 at 09:00 in the AUDITORIUM, METROPOLITAN HEAD OFFICE, MISPEL ROAD, BELLVILLE. Registration from 08:00. Belmont Office Park Twist Street BELLVILLE AGTIENDE VERGADERING VAN DIE ALGEMENE KOMITEE Neem asseblief kennis dat die vergadering van die Algemene Komitee op Vrydag 19 April 2002 om 09:00 in die OUDITORIUM, METROPOLITAN HOOFKANTOOR, MISPELSTRAAT, BELLVILLE gehou word. Registrasie vanaf 08:00. Belmont Office Park Twiststraat BELLVILLE A G E N D A A G E N D A 1. Notice convening the meeting. 2. Confirmation of minutes of the seventeenth meeting. 3. Address by the chairperson. 4. Consideration and adoption of the Balance Sheet and Financial Statements for the year ended 30 June 2001 as well as the report of the Board of Trustees. 5. Presentations: 5.1 Section 57 of the Local Government Municipal Systems Act, 2000 : Contract Appointments 5.2 Pension Funds Second Amendment Act, Pierre Reineck 6. Election of Trustees: Election of 1 member delegate (Eastern Cape) 7. Notice of motions and/or proposals. Rule 7(9) of the Rules of the Fund reads inter alia as follows: At least ten weeks written notice of intention to move a proposal at the general meeting shall be given to the Principal Officer. 8. Thanks 1. Kennisname van vergadering wat belê is. 2. Bekragtiging van notule van die sewentiende vergadering. 3. Voorsittersrede. 4. Oorweging en aanname van die Balansstaat en Finansiële State vir die jaar geëindig 30 Junie 2001 en die verslag van die Raad van Trustees. 5. Aanbiedings: 5.1 Artikel 57 van Plaaslike Regering : Wet op Munisipale Stelsels, 2000 : Kontrakaanstellings 5.2 Tweede Wysigingswet op Pensioenfondse, Pierre Reineck 6. Verkiesing van Trustees: Verkiesing van 1 amptenaar afgevaardigde (Oos-Kaap) 7. Kennisname van mosies en/of voorstelle. Artikel 7(9) van die Statute van die Fonds lees onder andere soos volg: Die Hoofbeampte moet minstens tien weke skriftelike kennisgewing gegee word van voorneme om n mosie by die algemene jaarvergadering in te dien. 8. Dankbetuigings J KELLERMAN PRINCIPAL OFFICER/HOOFBEAMPTE

4 MINUTES OF THE SEVENTEENTH ANNUAL GENERAL MEETING OF THE GENERAL COMMITTEE OF THE CAPE JOINT PENSION FUND HELD IN THE AUDITORIUM, METROPOLITAN BUILDING, MISPEL ROAD, BELLVILLE ON FRIDAY 15 JUNE PRESENT: Mr S Immelman (Chairman) 9 Members of the Board of Trustees 72 Delegates with voting rights and 8 as observers (5 members tendered their apologies) GUESTS: Mr A Martin (Actuary) Ms L van Zijl (KPMG) Mr D Mohr (Citadel) STERLING ALLIANCE: SASH: Adv C J Franken (Chief Executive Officer) Messrs E Thomson, W Hugo and L Vermeulen, Ms B Penny, S Erasmus and F Viljoen Ms Z Venter (Managing Director), Messrs C van Graan and J Swart Ms R Syer, O Fransman and N Blayi 1. OPENING, WELCOME AND NOTICE OF MEETING 1.1 The meeting was opened with prayer by Mr Albert Boliter. 1.2 The chairman welcomed Alderman George Mellet, chairman of the Finance Committee and a member of the Executive Committee of the Unicity, members of the Board of Trustees, all the delegates and everyone else present to the Seventeenth Annual General Meeting of the Fund. 1.3 Alderman George Mellet welcomed the chairman, members of the Board of Trustees and all the delegates to the North Eastern part of Cape Town. He tendered apologies on behalf of the Mayor, Alderman Peter Marais, as well as the Deputy Mayor, who were both unable to attend the meeting due to other engagements. He thanked the Fund for keeping its contribution rates static and for achieving a funding level of 104%. He also congratulated the Fund for imparting financial peace of mind to its members. Furthermore, he expressed the wish that the proceedings of the day would be fruitful and successful. He thereupon declared the Annual General Meeting officially opened. The chairman thanked Alderman Mellet for the kind words and wished him, the Mayor and his council everything of the best for the coming year. 1.4 The chairman also welcomed Mr Edward Thomson and his IT team who were arranging the Fund s first live webcast of the Annual General Meeting. 1.5 The notice convening the Seventeenth Annual General Meeting WAS TAKEN AS READ.

5 NOTULE VAN DIE SEWENTIENDE ALGEMENE JAARVERGADERING VAN DIE ALGEMENE KOMITEE VAN DIE KAAPSE GEMEENSKAPLIKE PENSIOENFONDS GEHOU IN DIE OUDITORIUM, METROPOLITAN GEBOU, MISPELSTRAAT, BELLVILLE OP VRYDAG 15 JUNIE TEENWOORDIG: Mnr S Immelman (Voorsitter) 9 Lede van die Raad van Trustees 72 Stemgeregdigde afgevaardigdes en 8 waarnemers (5 lede bied verskoning aan) GASTE : Mnr A Martin (Aktuaris) Me L van Zijl (KPMG) Mnr D Mohr (Citadel) STERLING ALLIANCE: SASH: Adv C J Franken (Hoof Uitvoerende Beampte) Mnre E Thomson, W Hugo en L Vermeulen, Me B Penny, S Erasmus en F Viljoen Me Z Venter (Besturende Direkteur) Mnre C van Graan en J Swart, Me R Syer, O Fransman en N Blayi 1. OPENING, VERWELKOMING EN KENNISGEWING VAN VERGADERING 1.1 Die vergadering word deur mnr Albert Boliter met gebed geopen. 1.2 Die voorsitter heet Raadsheer George Mellet, voorsitter van die Finansiële Komitee en ook lid van die Uitvoerende Komitee van die Unistad, lede van die Raad van Trustees, al die afgevaardigdes en al die ander teenwoordig hartlik welkom by die Sewentiende Algemene Jaarvergadering van die Fonds. 1.3 Raadsheer George Mellet heet die voorsitter, lede van die Raad van Trustees en al die afgevaardigdes hartlik welkom in die Noordoostelike deel van Kaapstad. Hy bied verskoning aan namens die Burgemeester, Raadsheer Peter Marais, asook die Onderburgemeester, wat beide as gevolg van ander verpligtinge nie die vergadering kan bywoon nie. Hy bedank die Fonds dat bydrae koerse onveranderd gehou word en dat die Fonds n aktuariële befondsingsvlak van 104% het. Hy wens ook die Fonds geluk met die finansiële gemoedsrus wat steeds vir lede daargestel word. Verder spreek hy die wens uit dat dit n vrugbare en suksesvolle jaarvergadering sal wees. Daarna verklaar hy die Algemene Jaarvergadering amptelik oop. Die voorsitter bedank Raadsheer George Mellet vir die mooi woorde en wens hom, die Burgemeester en die Raad alles van die beste toe vir die komende jaar. 1.4 Die voorsitter verwelkom ook mnr Edward Thomson en sy IT span. Hulle is verantwoordelik vir die eerste lewendige web-uitsending van die Algemene Jaarvergadering. 1.5 Die kennisgewing van die Sewentiende Algemene Jaarvergadering WORD AS GELESE BESKOU.

6 2. CONFIRMATION OF MINUTES The minutes of the Annual General Meeting held on 19 May 2000 WERE CONFIRMED with the following amendments: Page 2, point the word Third be replaced by the word Sixteenth ; Page 36, point 1 - the word MOSSEL BAY be replaced by the word OUDTSHOORN. 3. ADDRESS BY THE CHAIRPERSON (Annexure A) The chairman delivered his address. After discussion his address WAS ACCEPTED with thanks. 4. REPORT OF THE BOARD OF TRUSTEES AND FINANCIAL STATEMENTS Mr Marius Marais presented the Financial Statements and after a question and answer session, the report and financial statements WERE ACCEPTED. 5. PRESENTATION : CAPITAL GAINS TAX Ms Liezel van Zijl, Tax Consultant of KPMG, delivered a most informative presentation on capital gains tax. She described how the different classes of assets such as, personal use assets, primary residents property, residential property, commercial property and small business assets will be affected by the introduction of capital gains tax. She explained what will be excluded from this tax and how the tax will be determined. She stated that it would be necessary to reconsider what we consider to be sufficient for retirement and to make plans in order to replenish the deficit that capital gains tax may cause in one s financial situation. The presentation WAS NOTED. 6. ELECTION OF THE BOARD OF TRUSTEES 6.1 The following officials were nominated and seconded. They were ELECTED UNOPPOSED for a term of office of four years: Mr H F Botha - Western Cape Mr J A H van den Berg - Northern Cape 6.2 The following councillors were nominated and seconded. The votes were cast on voting papers as follows: Western Cape Number of votes W Rossouw 16 D Matthee 15 F Nel 6 J J Muller 3 Eastern Cape M W Wogane unopposed

7 2. BEKRAGTIGING VAN NOTULE Die notule van die Algemene Jaarvergadering gehou op 19 Mei 2000 WORD BEKRAGTIG met die volgende wysigings: Bladsy 2, punt die woord Third vervang word met Sixteenth ; Bladsy 36, punt 1 - die woord MOSSEL BAY vervang word met OUDTSHOORN. 3. VOORSITTERSREDE (Bylae A) Die voorsitter lewer sy rede. Sy rede word na bespreking met dank AANVAAR. 4. VERSLAG VAN DIE RAAD VAN TRUSTEES EN FINANSIËLE STATE Mnr Marius Marais lê die finansiële state voor en na n vraag- en antwoordsessie word die verslag en finansiële state AANVAAR. 5. VOORLEGGING : KAPITAALWINSBELASTING Me Liezel van Zijl, n belastingkonsultant van KPMG, doen n baie insiggewende aanbieding oor kapitaalwinsbelasting (KWB). Sy verduidelik hoe verskillende tipe bates soos bv. persoonlike bates, hoof huiseiendomme, handelseiendomme en ander klein besigheidsbates deur die instelling van KWB beïnvloed word. Sy verduidelik ook wat nie by hierdie belasting ingesluit gaan word nie en hoe dit bepaal sal word. Sy stel voor dat elke persoon wat belastingpligtig is sy/haar finansiële beplanning moet hersien teen die agtergrond van die instelling van KWB, aangesien n bedrag wat tans as voldoende finansiële voorsiening vir aftrede beskou mag word, dalk nie mag realiseer nie, weens die uitwerking van KWB - addisionele finansiële voorsiening mag dus nodig wees. Die voorlegging WORD AANGETEKEN. 6. VERKIESING VAN DIE RAAD VAN TRUSTEES 6.1 Die volgende amptenare word voorgestel en gesekondeer. Hulle word ONBESTREDE VERKIES vir n termyn van vier jaar: Mnr H F Botha - Wes-Kaap Mnr J A H van den Berg - Noord-Kaap 6.2 Die volgende raadslede word voorgestel en gesekondeer. Deur stembriefies word die stemme soos volg uitgebring: Wes-Kaap Getal stemme W Rossouw 16 D Matthee 15 F Nel 6 J J Muller 3 Oos-Kaap M W Wogane onbestrede

8 Northern Cape The election process could not take place, as there was only one delegate present with voting rights. The chairman declared the following councillors DULY ELECTED for a term of office of four years: W Rossouw - Western Cape D Matthee - Western Cape M W Wogane - Eastern Cape 7. PRESENTATION : ECONOMIC PERSPECTIVE Mr Dave Mohr of Citadel delivered an in-depth presentation on the growth rate and economic trends in South Africa. He expounded on two important economic shifts namely, the inflation experience and exchange rates. He then spent time on that part of the economy that relies on international exports and the other part that relies on domestic markets. He also noted that there was a shift predominantly in the motor industry away from South Africa s reputation as importers of manufactured goods and exporters of commodities. He concluded by stating that South Africa s growth rate should pick up and have a positive impact over the next 5 years. The presentation WAS NOTED. 8. SUMMARY OF ACTUARIAL REPORT (Annexure B) The report WAS NOTED. 9. COMMENTS ON MOTIONS REFERRED TO THE BOARD OF TRUSTEES FROM THE PREVIOUS ANNUAL GENERAL MEETING (Annexure C) The comments and report back by the Board of Trustees on the motion referred to them from the previous Annual General Meeting WERE ACCEPTED. 10. MOTIONS BOARD OF TRUSTEES The Trustees hereby seek a mandate from this meeting to investigate regional Annual General Meetings in principle as well as the format thereof and to implement if found to be feasible. The reasons for this request is: to make the Annual General Meeting accessible to all members; to curb costs for Local Authorities; to allow more members to attend the Annual General Meeting; to create an opportunity to discuss other related subjects eg. Financial planning / Benefit structure / Tax issues. THE MOTION WAS ACCEPTED.

9 Noord-Kaap Die verkiesing vind nie plaas nie, aangesien net 1 stemgeregdigde afgevaardigde teenwoordig is. Die voorsitter verklaar die volgende raadslede BEHOORLIK VERKIES vir n termyn van vier jaar: W Rossouw - Wes-Kaap D Matthee - Wes-Kaap M W Wogane - Oos-Kaap 7. VOORLEGGING : EKONOMIESE PERSPEKTIEF Mnr Dave Mohr van Citadel doen n volledige aanbieding oor die groeikoers en ekonomiese tendens in Suid-Afrika. Hy gee n uiteensetting van twee belangrike ekonomiese verwikkelinge, nl. inflasie en wisselkoerse. Daarna spandeer hy tyd aan die deel van die ekonomie wat handel oor internasionale uitvoere en n ander deel wat handel oor binnelandse markte. Hy meld dat daar veral in die motorindustrie wegbeweeg word van die reputasie wat Suid-Afrika sien as invoerders van vervaardigde goedere en uitvoerders van grondstowwe. Hy sluit af deur te sê dat die groeikoers in Suid-Afrika nou behoort te verbeter en dat dit n positiewe uitwerking gedurende die volgende 5 jaar sal hê. Die voorlegging WORD AANGETEKEN. 8. OPSOMMING VAN AKTUARIËLE VERSLAG (Bylae B) Die verslag WORD AANGETEKEN. 9. KOMMENTAAR OP MOSIES VERWYS NA DIE RAAD VAN TRUSTEES BY DIE VORIGE ALGEMENE JAARVERGADERING (Bylae C) Die kommentaar en terugvoering van die Raad van Trustees op die mosie wat by die vorige Algemene Jaarvergadering na hulle verwys is, WORD AANVAAR. 10. MOSIES RAAD VAN TRUSTEES Die Trustees versoek hiermee n mandaat van die vergadering om Streeks Algemene Jaarvergaderings in beginsel te ondersoek in beginsel asook die formaat daarvan en te implementeer indien wenslik. Die redes hiervoor is onder andere: toeganklikheid vir lede; om kostes vir plaaslike owerhede te beperk; meer lede toegang te gee vir bywoning en deelname; die geleentheid te skep vir bespreking van ander onderwerpe bv. finansiële beplanning / voordeelstruktuur / belasting. DIE MOSIE WORD AANVAAR.

10 The Trustees hereby seek a mandate to research and implement, if found to be feasible, the following: - to redesign the benefit structure of the Fund to allow:- for greater benefit choices; for contract workers to remain members of this Fund; for develop a unique defined contribution option; to keep the Fund innovative and competitive to cap increasing liabilities. Process: To determine the needs of members; To protect the existing rights and benefits of members; The new benefit design wil be finalised in consultation with the Retirement Fund. THE MOTION WAS ACCEPTED PROVIDED THAT THE IMPLEMENTATION DOES NOT IMPACT NEGATIVELY ON MEMBERS EXISTING RIGHTS CITY OF CAPE TOWN Investigate the possibility of granting additional years service/membership or enhanced pensionable salary to members equal to the demutualisation value of the shares allocated to the Fund. Motivation With the demutualisation of SANLAM and Old Mutual, shares were allocated to the Cape Joint Pension Fund. Notice PF 104 regulates the application of these funds. Point number three of the document indicates that the Board of the Fund has to decide on the application of the additional value in the Fund. Since it is a fixed benefit fund where formulas determine your pension, the benefits of the demutualisation can only be passed on to members by granting them additional years of membership or an enhanced salary (continued members). THERE WAS NO DELEGATE TO PRESENT THE MOTION. HOWEVER, THE BOARD OF TRUSTEES RESPONDED BY SAYING THAT THEY ARE NOT IN FAVOUR OF GRANTING ANY BENEFIT IMPROVEMENTS WITHOUT PROPER INVESTIGATION INTO THE FINANCIAL IMPLICATIONS. THE MOTION WAS THEREFORE REFERRED TO THE BOARD OF TRUSTEES.

11 Die Trustees versoek hiermee volmag om die volgende ondersoek te doen en te implementeer indien wenslik: - om die voordeelstruktuur van die Fonds te herstruktureer ten einde:- groter keuses aan lede te verleen; werknemers met kontrakte te akkommodeer; n unieke vaste bydrae voordeel struktuur te ontwikkel; die Fonds vernuwend en groeiend te hou; stygende verpligtinge te beperk. Proses: Behoeftes van lede sal volledig bepaal word; Bestaande regte en voordele sal beskerm word; Nuwe voordeel struktuur sal in oorleg met die Aftreefonds gefinaliseer word. DIE MOSIE WORD AANVAAR MITS DIE IMPLEMENTERING DAARVAN NIE N NEGATIEWE UITWERKING OP LEDE SE HUIDIGE REGTE SAL HÊ NIE STAD KAAPSTAD Dat die moontlikheid ondersoek word om addisionele jare diens/lidmaatskap of verhoogde salaris (voortgesette lede) aan lede toe te ken gelykstaande aan die demutualiseringswaarde van die aandele wat aan die Fonds toegeken is. Motivering Met die demutualisering van SANLAM en Ou Mutual is aandele aan die Kaapse Gemeenskaplike Pensioenfonds toegeken. Die aanwending van hierdie fondse word gereguleer deur kennisgewing PF 104. Punt nommer drie van die dokument dui aan dat die Fonds Trustees moet besluit oor die aanwending van die addisionele waarde in die Fonds. Aangesien dit n vaste voordele fonds is waar formules jou pensioen bepaal, sal die voordele van die demutualisering slegs aan lede deurgegee kan word deur addisionele jare lidmaatskap aan hulle toe te ken of n verhoogde salaris (voortgesette lede). DAAR IS GEEN AFGEVAARDIGDE TEENWOORDIG OM HIERDIE MOSIE VOOR TE STEL NIE. DIE RAAD VAN TRUSTEES MELD EGTER DAT HULLE NIE TEN GUNSTE DAARVAN IS OM VERBETERDE VOORDELE VOOR TE STEL VOORDAT DEEGLIKE ONDERSOEK NA DIE FINANSIËLE IMPLIKASIES DAARVAN EERS INGESTEL IS NIE. DIE MOSIE WORD DUS NA DIE RAAD VAN TRUSTEES VERWYS.

12 That the annual bonus paid to pensioners in the past and which was phased out, be re-instated. Motivation That pensions are based on salaries that are unrealistically low compared to present day salaries and in most cases pensioners cannot cope with ever escalating cost of living. The annual increases in pensions do not compensate for the shortfalls. The Fund is urgently requested to assist pensioners by having the annual bonus re-instated. THE MOTION WAS REFERRED TO THE BOARD OF TRUSTEES FOR INVESTIGATION GEORGE MUNICIPALITY That the Board of Trustees, on an ongoing basis, give feedback to members regarding the progress of implementing motions accepted at the Annual General Meeting (and referred to them for investigation and implementation). Motivation The practice of feedback at the Annual General Meeting about motions referred to the Board of Trustees during the previous Annual General Meeting is appreciated and should be continued with. Change and transformation are presently key words, not only in local government but also amongst its employees. These uncertainties are by no means promoting productivity or effective service rendering and should be resolved as soon as possible. During his speech of 15 May 2000, the Chairman (page 9) declared: The Fund regards itself as a service organisation and client service is very important. In the coming year we will therefor still focus on effective communication with our members. Great appreciation exists for the four newsletters since the previous Annual General Meeting, more is the pity that it contained very little information regarding the seven motions which were referred to the Board of Trustees. During the 2000 Annual General Meeting, a motion on behalf of the members of George Municipality was submitted, important not only for the latter, but probably for all members of the Fund. To date no feedback in this regard was received and employees are still living in uncertainty in this regard. The process of placing employees within the new municipal structures are about to start and still employees are in the dark in this regard. THE MOTION WAS REFERRED TO THE BOARD OF TRUSTEES FOR INVESTIGATION.

13 Dat die jaarlikse bonus wat in die verlede aan pensioenarisse betaal was en wat uitgefaseer is, heringestel word. Motivering Pensioene is gebaseer op salarisse wat onrealisties laag vergelyk met hedendaagse salarisse en, in meeste gevalle kan pensioenarisse nie tred hou met die steeds stygende lewenskoste nie. Die jaarlikse verhogings in pensioene vergoed nie hiervoor nie. Dit word dringend versoek om pensioenarisse tegemoet te kom deur die herinstelling van die jaarlikse bonus. DIE MOSIE WORD NA DIE RAAD VAN TRUSTEES VERWYS VIR ONDERSOEK GEORGE MUNISIPALITEIT Dat die Raad van Trustees op n deurlopende basis terugvoer aan lede sal verskaf oor die vordering wat gemaak word met die implementering van mosies wat tydens die Algemene Jaarvergaderings aanvaar is en na die Raad van Trustees verwys is vir ondersoek en implementering. Motivering Dit is gebruiklik dat daar by n Algemene Jaarvergadering deur die Raad van Trustees terugvoer gegee word oor die mosies wat na die Raad van Trustees verwys was tydens die vorige Algemene Jaarvergadering. Die gebruik word waardeer en behoort so voort te gaan. In dié tyd van verandering en oorgang waarin plaaslike regering hom tans bevind bestaan daar groot onsekerhede in die gemoed van amptenare wat nie bevorderlik is vir effektiwiteit en produktiwiteit nie. Pogings behoort gevolglik aangewend te word om die onsekerhede sover moontlik uit te klaar en/of te verminder. Op bladsy 9 van die Voorsittersrede soos gelewer op 19 Mei 2000 het die Voorsitter die volgende gesê: Die fonds beskou homself as n diensverskaffingsorganisasie, en kliëntediens is baie belangrik. Ons sal dus in die jaar wat kom steeds fokus op effektiewe kommunikasie met ons lede. Daar bestaan groot waardering vir die vier nuusbriewe wat sedert die vorige Algemene Jaarvergadering verskyn het, maar dit is ongelukkig so dat weinig inligting oor die sewe mosies wat tydens die Algemene Jaarvergadering na die Raad van Trustees verwys is, daarin vervat is. Tydens die 2000 Algemene Jaarvergadering is n mosie namens George Munisipaliteit se lede gestel wat vir die lede van groot belang is, en wat na alle waarskynlikheid vir alle lede van die fonds van groot belang is. Tot datum is geen terugvoer daaroor ontvang nie en leef werknemers nog steeds in onsekerheid oor wat die posisie is. Die proses van plasing van amptenare binne die nuwe munisipale strukture is op die punt om te begin sonder dat amptenare duidelik weet oor waar hulle in die verband staan. DIE MOSIE WORD NA DIE RAAD VAN TRUSTEES VERWYS VIR ONDERSOEK.

14 That female members of the Pension Fund with retrospective effect be allowed to change their original choice made in 1999, should they so wish, providing they do it one year in advance. Motivation In 1999 the Regulations of Pension Funds were changed in such a way as to allow women in local government the option of choosing the same retirement age, i.e. 65 as was/is the case all along for men. At that stage (1999) women employees however had to submit a written choice indicating which of 60 or 65 they choose as their personal retirement age. Having chosen for example 60 as retirement age then, but for instance having in 2001 a totally different set of personal circumstances, a woman employee at present is not allowed the democratic freedom by the Pension Fund to alter her choice and request to now retire at the age of 65. The latter can at present only be decided by the Council of the Local Authority where she is an employee. In this day and age this smacks of discrimination as well as disbarring freedom of choice. THE MOTION WAS REFERRED TO THE BOARD OF TRUSTEES FOR INVESTIGATION That a full investigation be done about the changing types of membership of the Cape Joint Pension Fund since 1 January 1991 and a complete report thereafter be submitted to all members. Motivation Good management is one reason why time and again during Annual General Meetings it is reported that the Pension Fund is 100% funded. Members thus wish to extend their appreciation, not only to the present Board of Trustees, but also to the many Board members of the past, for excellent work done on an ongoing basis. Analysis of the drastic decline in membership, especially of contributing members, of the Fund over the last few years, unfortunately indicates that it has very little bargaining potential and is fast becoming a closed fund. These facts as well as the active national drive to reduce the number of pension, retirement and medical funds to which municipal employees may belong, are well founded reasons to doubt whether this Fund with its dwindling membership will be able to operate independently for very long. In addition hereto is the fear that any amalgamation will probably result in weaker management, larger risks, a decline in service and above all the possibility that, like so many others, the Fund in the medium to long run might collapse altogether. Rationalisation of municipalities and their increasing incapacity to honour their running expenses, place the guarantee of fixed profits under suspicion. Should contributing members in future be allowed to change from Funds, the abovementioned apprehensions will in all probability reflect negatively on the membership of the Cape Joint Pension Fund. THE REQUEST WAS ACCEPTED. IT WAS DECIDED THAT THE STATISTICS BE COMPILED AND PUBLISHED IN THE FUND S NEXT NEWSLETTER AND ON THE WEBSITE.

15 Dat dameslede van die Pensioenfonds met terugwerkende krag, toegelaat word om, sou hulle dit verkies, hulle keuse van 1999 met een jaar kennisgewing, te verander. Motivering In 1999 is die Reglement van Pensioenfondse sodanig gewysig om ten opsigte van aftrede aan dames die opsie te gee om dieselfde aftreeouderdom naamlik 65 jaar, soos al die jare op manlike werknemers van toepassing, te kies. Dames moes in 1999 n geskrewe keuse, hetsy 60 of 65 voorlê. As n dame toe byvoorbeeld gekies het om op 60 af te tree, maar nou in 2001 het haar persoonlike omstandighede verander en verkies sy om op 65 jaar af te tree, word sy die demokratiese vryheid van keuse misgun, want haar diens kan nou slegs met die toestemming van die Raad van die plaaslike owerheid waar sy in diens is, verleng word. Hierdie is boonop n blatante voorbeeld van diskriminasie. DIE MOSIE WORD NA DIE RAAD VAN TRUSTEES VERWYS VIR ONDERSOEK Dat n volledige ondersoek gedoen word na die vermindering van getalle van alle tipes lede van die Kaapse Gemeenskaplike Pensioenfonds sedert 1 Januarie 1991 en dat ook volledig verslag gedoen word daaroor aan alle lede sodra sodanige verslag beskikbaar is. Motivering Die feit dat jaarliks tydens Algemene Jaarvergaderings verslag gedoen kan word dat die fonds 100% befonds is, is onder andere n bewys dat die fonds oor die afgelope jare baie goed bestuur is. Die lede van die fonds se waardering vir die huidige Raad van Trustees en alle vorige Rade van Trustees. Indien n ontleding egter gedoen word van die drastiese daling in die aantal lede van die fonds, en in besonder die bydraende lede van die fonds, oor die afgelope paar jaar, blyk dit baie duidelik dat hierdie fonds afstuur op n geslote fonds slegs vir voortgesette lede met baie min bedingings-potensiaal. Indien daar na die dalende aantal en persentasie van bydraende lede gekyk word en daar word gekyk na die aksies op nasionale vlak om die aantal pensioen-, aftree- en mediese fondse waaraan munisipale amptenare mag behoort te verminder, bestaan daar ernstige vrees of die Kaapse Gemeenskaplike Pensioenfonds met sy kwynende ledetal nog baie lank selfstandig voortgesit sal kan word. Die verdere vrees bestaan dat enige amalgamasie van die fonds na alle waarskynlikheid sal lei tot swakker bestuur wat weer sal lei tot groter risikos, swakker diens aan lede en die vrese van amptenare dat die fonds soos vele ander fondse op die medium of langtermyn mag ineenstort. Gegewe die rasionalisasie van munisipaliteite en hul kwynende finansiële vermoë om hul lopende verpligtinge na te kom, word die waarborg van vaste voordele onder verdenking geplaas. Die vrese wat uit die voorafgaande spruit sal na alle waarskynlikheid tot gevolg hê dat wanneer bydraende lede in die nabye toekoms die geleentheid gaan hê om n keuse uit te oefen om van fonds te verander, die geleentheid benut gaan word tot nadeel van die Kaapse Gemeenskaplike Pensioenfonds. DIE VERSOEK WORD AANVAAR. DAAR WORD BESLUIT DAT DIE STATISTIEKE SAAMGESTEL EN IN DIE FONDS SE VOLGENDE NUUSBRIEF EN OP DIE WEBTUISTE GEPUBLISEER MOET WORD.

16 That a terse and user friendly information brochure, highlighting the benefits of membership of the Cape Joint Pension Fund, be made available to the Personnel Sections of all municipalities. SASH, THE FUND S COMMUNICATION CONSULTANTS ALREADY COMPILED MEMBER BROCHURES THAT HAVE BEEN DISTRIBUTED TO ALL LOCAL AUTHORITIES. THE MOTION WAS REFERRED TO THE BOARD OF TRUSTEES TO CONSIDER THE FINANCIAL IMPLICATIONS TO PRODUCE A SMALLER, MORE CONCISE BOOKLET That the necessary training/information in promoting the Cape Joint Fund be given to all employees in Personnel Sections of municipalities. Motivation A superficial investigation in the Personnel Section of the George Municipality reflected that the benefits of the Retirement Fund and even that of SALA are promoted much more rigorously under new employees than that of the Pension Fund. SASH, THE FUND S COMMUNICATION CONSULTANTS HAVE EXPERIENCED TRAINERS WHO PRESENT LOCAL AUTHORITY INDUCTION PROGRAMMES TO ACTIVELY PROMOTE THE FUND.

17 Dat n kernagtige verbruikersvriendelike inligtingstuk met betrekking tot die voordele van lidmaatskap van die Kaapse Gemeenskaplike Pensioenfonds opgestel word en aan alle munisipaliteite se Personeelafdelings beskikbaar gestel word. SASH, DIE KOMMUNIKASIE KONSULTANTE VAN DIE FONDS HET REEDS BROSJURES VIR LEDE SAAMGESTEL EN AAN ALLE PLAASLIKE OWERHEDE VERSPREI. DIE MOSIE WORD NA DIE RAAD VAN TRUSTEES VERWYS SODAT DIE FINANSIËLE IMPLIKASIES VAN N KLEINER EN BONDIGER BROSJURE ONDERSOEK KAN WORD Dat die nodige opleiding / toeligting aan alle personeel verbonde aan Personeelafdelings van munisipaliteite gegee word ten einde die Fonds te kan bemark. Motivering n Oppervlakkige ondersoek na die situasie by die Personeelafdeling van die Munisipaliteit van George het aan die lig gebring dat die voordele van die Aftreefonds en selfs SALA baie sterker onder die aandag gebring word van nuwe toetreders as die van die Kaapse Gemeenskaplike Pensioenfonds. SASH, DIE KOMMUNIKASIE KONSULTANTE VAN DIE FONDS HET ERVARE AANBIEDERS WAT INDUKSIEPROGRAMME BY PLAASLIKE OWERHEDE AANBIED EN WAARBY HULLE DIE FONDS AAN NUWE LEDE BEKENDSTEL.

18 11. MOTION OF THANKS by Mr H F Botha 11.1 To the chairman for the able and efficient manner in which he conducted the meeting; 11.2 To the Trustees for their dedication and commitment to the Fund; 11.3 To Alderman George Mellet who officially opened the meeting; 11.4 To the actuary, Mr Alan Martin, for his professional input at Trustee meetings; 11.5 To Sterling Alliance Funds Administrator and SASH for their involvement and support at our Trustee meetings; 11.6 To Adv Christi Franken and his staff, especially Wouter, Eddie and Brenda for their contribution and hard work; 11.7 To Susan Erasmus for all the organisational arrangements of the meeting; 11.8 To Leon Vermeulen for his web broadcasting technical assistance; 11.9 To the guest speakers: Mr Dave Mohr of Citadel and Liezel van Zijl of KPMG; To Metropolitan for making the use of the auditorium and its facilities available; To Mr Alan Elston of Infra Rad for the audio system; To Debbie Greyling of Trade Glo International for the recording of the meeting; To Mr Livingstone Gosani for being available to assist with translation; To Ronél van Heerden of Fedics and her staff for the catering; To everyone who has joined the meeting live on the website; To everyone who attended the meeting. A safe journey home is wished to every delegate. The meeting closed on Friday, 15 June 2001 at 13: DATE... CHAIRMAN

19 11. DANKBETUIGINGS deur mnr H F Botha 11.1 Aan die voorsitter vir die besondere bekwame wyse waarop hy die verrigtinge gelei het; 11.2 Aan die Trustees vir hulle toewyding aan die Fonds; 11.3 Aan Raadsheer George Mellet wat die vergadering amptelik geopen het; 11.4 Aan die aktuaris, mnr Alan Martin, vir sy professionele bystand in Trusteevergaderings; 11.5 Aan Sterling Alliance Fondse Administrateur en SASH vir hulle betrokkenheid en hulp by Trusteevergaderings; 11.6 Aan Adv Christi Franken en sy personeel, in die besonder Wouter, Eddie en Brenda vir hulle toewyding en harde werk; 11.7 Aan Susan Erasmus vir al die reëlings en organisasie van die vergadering; 11.8 Aan mnr Leon Vermeulen vir sy tegniese bystand tydens die web-uitsending; 11.9 Aan die gassprekers: mnr Dave Mohr van Citadel en Liezel van Zijl van KPMG; Aan Metropolitan vir die beskikbaarstelling van die ouditorium met al die fasiliteite; Aan mnr Alan Elston van Infra Rad vir die klankstelsel; Aan Debbie Greyling van Trade Glo International vir die opneem van die vergadering op band; Aan mnr Livingstone Gosani vir sy beskikbaarheid om te help met vertaling; Aan Ronél van Heerden van Fedics en haar personeel vir die verversings; Aan elkeen wat via die web-uitsending die vergadering gevolg het; Aan elkeen wat die vergadering bygewoon het. n Voorspoedige terugrit word elkeen toegewens. Die vergadering verdaag op Vrydag, 15 Junie 2001 om 13: DATUM... VOORSITTER

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28 MOTION 1. HANOVER MUNICIPALITY That subparagraphs (i) and (ii) of Rule 29 of the Rules of the Fund be renumbered as (ii) and (iii) and the following new subparagraph (i) be inserted: the years of service be calculated up to the date on which the member normally would have retired and the insertion of the following new subparagraph (iv): the difference between the annuity and gratuity payable calculated on years of service up to pensionable service and actual service be paid by the Local Authority. Motivation The Transvaal Municipal Pension Fund takes the years of service up to the retirement in consideration for the contribution of gratuity and annuity. THE MOTION WAS REFERRED TO THE BOARD OF TRUSTEES FOR FURTHER INVESTIGATION. Comment: The process of designing an appropriate benefit structure for a retirement fund involves putting together a package of benefits that adequately meets the needs of the members at an acceptable cost to the sponsoring employer. The package of benefits offered by the Cape Joint Pension Fund is in line with those offered by other municipalities and is significantly better than the average private sector fund. Looking specifically at the retrenchment benefit, one would expect that younger members who become retrenched have a better chance, and should be encouraged to take appropriate steps, to obtain alternative employment. The proposal to include future potential service in the benefit calculation for a retrenched member may be viewed as unduly generous to the individuals concerned. The following table has been constructed to illustrate the effects of the proposal compared with the current benefit: Age of member at retrenchment (years) Completed service (years) Current benefit structure Annuity as a % of salary Gratuity as a multiple of salary Proposed benefit structure Annuity as a % of salary Gratuity as a multiple of salary % % % % % % % % % % 2.9 (The Optional Retirement Age is taken as equal to a Pension Age of 65 years. The figures are prior to pending Rule Amendment No. 1)

29 MOSIE 1. HANOVER MUNISIPALITEIT Dat subparagrawe (i) en (ii) van Artikel 29 van die Statute van die Fonds hernommer word na (ii) en (iii) en die volgende nuwe subparagraaf (i) ingevoeg word: die jare diens bereken word tot op datum waarop die lid normaalweg sou afgetree het en die volgende subparagraaf (iv) ingevoeg word: die verskil tussen jaargeld en gratifikasie wat betaalbaar is indien jare diens tot pensioenleeftyd bereken en bereken volgens werklike jare diens deur die Paaslike Owerheid betaal word. Motivering Die Transvaalse Munisipale Pensioenfonds neem die jare diens tot by aftrede in berekening vir die gratifikasie en jaargeld. DIE MOSIE WORD NA DIE RAAD VAN TRUSTEES VERWYS VIR VERDERE ONDERSOEK. Kommentaar: Die proses om n toepaslike voordele struktuur vir n aftreefonds te ontwerp, behels die samevoeging van n voordele pakket wat toereikend is om aan die behoeftes van lede te voldoen teen n aanvaarbare koste vir die deelnemende werkgewer. Die voordele pakket wat deur die Kaapse Gemeenskaplike Pensioenfonds aangebied word is in ooreenstemming met dit wat deur ander munisipaliteite aangebied word en is aansienlik beter as die gemiddelde privaatsektor fonds. Wat betref reorganisasievoordele, kan redelikerwys verwag word dat jonger lede wat hulle poste weens reorganisasie verloor, nie slegs in n beter posisie is nie, maar ook aangemoedig behoort te word om die nodige stappe te neem om alternatiewe werk te soek. Die voorstel om toekomstige potensiële diens in te sluit by die voordeel berekeninge vir n lid wat sy pos weens reorganisasie verloor het mag as oormatig gunstig vir die betrokke lid beskou word. Die onderstaande tabel illustreer die gevolg van die voorstel in vergelyking met die huidige voordeel: Ouderdom van lid by reorganisasie (jare) Voltooide diens (jare) Huidige voordeel struktuur Jaargeld as % van salaris Gratifikasie as veelvoud van salaris Voorgestelde voordeel struktuur Jaargeld as % van salaris Gratifikasie as veelvoud van salaris % % % % % % % % % % 2.9 (Die Opsionele Aftreeouderdom is geneem as gelykstaande aan n Pensioenouderdom van 65 jaar. Die syfers is gebaseer as voor die hangende Reëlwysiging Nr. 1)

30 Under the proposal, in the extreme, a member aged 25 who is retrenched would receive an annual income of 87% of pensionable salary at the date of retrenchment increasing with pension increases in the future. It is likely that the individual will be successful in gaining some form of employment in the future and therefore it seems excessive to provide an income at this level for the remainder of the individual s lifetime, disregarding any income arising from future employment. The current retrenchment benefit provided by the Fund would generally be viewed as on the generous side by providing an immediate pension based on the full percentages that normally apply at PENSION AGE. The Trustees have recently reviewed the benefit and decided to improve the benefit for older, longer serving members who become retrenched. It was felt that such members are in a more difficult position to seek alternative employment and as a result needed additional compensation to reflect this. Any additional amount payable by the Local Authority is an employer benefit and as such would need to be negotiated by the members, Bargaining Council and the Local Authorities. In summary, the objective of the benefit is to provide the individual concerned with an amount that fairly represents the value earned by way of fund membership completed and also provides compensation to the member as a result of the involuntary nature of exiting the Fund. In my opinion, the current level of benefit achieves the stated objective. As illustrated, the proposed benefit arguably provides younger members who are retrenched with excessive benefits, which in my view are poorly targeted.

31 Kragtens die voorstel, in n uiterste geval, sal n lid wat 25 jaar oud is en sy pos weens reorganisasie verloor n jaarlikse inkomste ontvang wat gelykstaande is aan 87% van sy pensioengewende salaris op datum van reorganisasie, welke inkomste sal verhoog met toekomstige verhogings van pensioene. Dit is waarskynlik dat die betrokke lid sal slaag om een of ander vorm van werk te vind in die toekoms en dit blyk ietwat oormatig gunstig te wees om n inkomste te voorsien op hierdie vlak vir die oorblywende gedeelte van die betrokkene se leeftyd, sonder om enige inkomste wat uit n toekomstige diensverhouding mag spruit, in ag te neem. Die huidige reorganisasievoordeel wat deur die Fonds verskaf word, mag as uitermate gunstig beskou word deur n onmiddellike pensioen te verskaf wat gebaseer is op die volle persentasies wat onder normale omstandighede eers op PENSIOENOUDERDOM van toepassing is. Die Trustees het onlangs die voordeel hersien en het besluit om die voordeel vir ouer, langer-dienende lede wat hul poste weens reorganisasie verloor, te verbeter. Die standpunt is gehuldig dat sodanige lede in n moeiliker posisie verkeer om n alternatiewe werk te kry en gevolglik dat bykomende vergoeding derhalwe geregverdig is. Enige addisionele bedrag betaalbaar deur die Plaaslike Owerheid is n werkgewervoordeel en as sodanig behoort dit onderhandel te word tussen die lede, die Bedingingsraad en die Plaaslike Owerheid. Ter opsomming, die doelwit van die voordeel is om die betrokke lid te voorsien met n bedrag wat op n billike wyse die waarde verdien by wyse van voltooide fondslidmaatskap te verteenwoordig, asook om aan n lid vergoeding te voorsien weens die nie-vrywillige aard van beëindiging van lidmaatskap van die Fonds. Na my mening bereik die huidige vlak van voordele die verklaarde doelwit. Soos geillustreer, verskaf die voorgestelde voordeel jonger lede met oormatige voordele wat swak geteiken word.

32 REPORT OF THE BOARD OF TRUSTEES FOR THE YEAR ENDED 30 JUNE 2001 Your Trustees have pleasure in submitting this report on the activities of the Fund for the year ended 30 June FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2001 The audited financial statements for the year ended 30 June 2001 are attached herewith. 2. INVESTMENT RETURNS The investment return on the total assets of the fund for the preceding period under review is as follows:- Period Investment return on total assets ,72% ,1% ,7% ,4% The investment return was calculated by an independent actuary.

33 VERSLAG VAN DIE RAAD VAN TRUSTEES VIR DIE JAAR GEËINDIG 30 JUNIE 2001 U Trustees lê met genoeë hierdie verslag aangaande die aktiwiteite van die Fonds, gedurende die jaar geëindig 30 Junie 2001, aan u voor. 1. FINANSIËLE STATE VIR DIE JAAR GEËINDIG 30 JUNIE 2001 Die geouditeerde finansiële state vir die jaar geëindig 30 Junie 2001 word hierby ingesluit. 2. BELEGGINGSOPBRENGS Die beleggingsopbrengs op die totale bates van die Fonds vir die afgelope tydperk onder oorsig beloop as volg:- Periode Opbrengs op totale bates ,72% ,1% ,7% ,4% Die beleggingsopbrengs is bereken deur n onafhanklike aktuaris.

34 Cape Joint Pension Fund ANNUAL FINANCIAL STATEMENTS For the year ended 30 June 2001

35 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Schedule C Annual Financial Statements for the year ended 30 June 2001 Administrative information: Registered office - Postal address Belmont Office Park PO Box 4300 Twist Street Tyger Valley Bellville Name of principal officer : Mr H H Herbst Name of auditors : KPMG Inc. Name of valuator : Mr A Martin ( Metropolitan Life) Contents Page Schedule D Report of the independent auditors to the trustees 2 Schedule E Report of the trustees 3-9 Schedule F Statement of funds and net assets 10 Schedule G Revenue account Schedule H Notes to the financial statements Schedule I Report of the independent auditors to the Registrar and schedules to the annual financial statements

36 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Schedule D Report of the independent auditors To the trustees of the CAPE JOINT PENSION FUND We have audited the annual financial statements of the Cape Joint Pension Fund set out on pages 3 to 18 for the year ended 30 June These financial statements are the responsibility of the Fund's trustees. Our responsibility is to express an opinion on these financial statements based on our audit. Scope We conducted our audit in accordance with statements of South African Auditing Standards. Those standards require that we plan and perform the audit to obtain reasonable assurance that the financial statements are free of material misstatement. An audit includes: - examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, - assessing the accounting principles used and significant estimates made by the administrator, and - evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. Audit opinion In our opinion, the financial statements fairly present, in all material respects, the net assets of the fund at 30 June 2001 and the results of its activities for the year then ended, in accordance with generally accepted accounting practice, the rules of the Fund and in the manner prescribed by the Pension Funds Act, KPMG Inc. Registered Accountants & Auditors Chartered Accountants (S.A.) MSC House No. 1 Mediterranean Street Foreshore Cape Town 8001 Date: 2

37 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Schedule E Report of the Trustees for the year ended 30 June 2001 The Trustees hereby present their report for the year ended 30 June Management 1.1 Trustees Names of the Trustees in office during the year under review: Name: Capacity Residency: Messrs. S Immelman Chairman De Aar H F Botha Vice-chairman Mossel Bay B P F Erasmus (resigned 24/11/00) Port Elizabeth H B de Witt (passed away 02/02/01) Beaufort West P Colombo (resigned 24/11/00) Langebaan J A H van den Berg De Aar J H Veldsman Stilbaai M Marais Port Elizabeth A C Boliter Uitenhage M W Wogane (co-opted 26/03/01; elected 15/06/01) Port Elizabeth D J Matthee (co-opted 26/03/01; elected 15/06/01) Struisbaai M J de K de Waal (co-opted 26/03/01) Kuilsrivier P P Robbertse (co-opted 26/03/01) Monte Vista W F Rossouw (elected 15/06/01) Kuilsrivier Represents the members Represents the pensioners 1.2 Principal Officer Name of principal officer: Mr C Franken Date of appointment : 1 January 1999 Date of resignation : 31 August 2000 Name of principal officer: Mr E G Thomson Date of appointment: 1 September 2000 Date of resignation : 30 December 2000 Name of principal officer: Mr H H Herbst Date of appointment: 31 December Address of the registered office and postal address of the Pension Fund Address of registered office: Postal address: Belmont Office Park PO Box 4300 Twist Street Tyger Valley Bellville

38 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Report of the Trustees for the year ended 30 June 2001 (continued) 1.4 Valuator Name of valuator : Mr A Martin ( Metropolitan Life) 1.5 Investment administrators Name of investment administrators during the year: Fair Value (a ) Coronation Asset Management - R (b ) Old Mutual Asset Management (Local) - R Old Mutual Asset Management (International) - R (c ) Sanlam Investment Management - R (d ) RMB Asset Management (Pty) Ltd. - R (e ) State Street Off-Shore - R (f ) Insinger Off-Shore - R (g ) Investec Asset Management Limited - R Business addresses Postal addresses (a ) Boundary Terraces P.O. Box 993 No. 1 Mariendahl Lane Cape Town Newlands (b ) Mutualpark PO Box 1014 Jan Smuts Drive Cape Town Pinelands 8000 (c ) Tijger Park IV Private Bag X6 Willie van Schoor Avenue Tyger Valley Bellville 7638 (d ) 1 Merchant Place PO Box Fredman Avenue Sandton Sandton (e ) 21 St. James' Square 21 St. James' Square London London FW 174 SS FW 174 SS United Kingdom United Kingdom 4

39 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Report of the Trustees for the year ended 30 June 2001 (continued) (f ) Heerengracht 537 Heerengracht DV 1017 DV Amsterdam Amsterdam Holland Holland (g ) 36 Hans Strijdom Avenue PO Box 1655 Cape Town Cape Town Employers participating in the fund in terms of the rules of the fund Refer to the attached list. (No. 12 of Annexure A to Schedule I). 2. Description of the pension fund 2.1 Type of pension fund For the purposes of the prescribed financial statements of the Fund, the Fund is classified as a provident fund in terms of Section 1 of the Income Tax Act, 1962 and as a pension fund organisation in terms of the Pension Funds Act, 24 of Benefits (a) On resignation a member is entitled to contributions plus interest. (b) On death, retirement or ill-health retirement a member/dependant is entitled to a lump sum and a monthly pension. (For the calculation of these you are referred to Sections 26 to 36 of the Rules of the Fund). 5

40 Cape Joint Pension Fund (Reference Number: 12/8/1278/2) Report of the Trustees for the year ended 30 June 2001 (continued) 3. Review of the year's activities 3.1 Membership The number of active members of the Fund at year-end was 4 269, while monthly pensions were paid to members. The number of deferred members at year-end was 61. (a) Transfers in - Nil members were transferred to the Fund during the period from the Cape Joint Retirement Fund. (b) Transfers out members, who were transferred to other funds during previous periods, were paid out during this period. (c) New members - 26 members joined the Fund during the period. (d) Withdrawals/Retrenchments members resigned from the Fund during the period. (e) Normal/Early Retirement - 93 members went on retirement during the period. (f) Ill health Retirements : Lump sum - 14 members received lump sums on ill health retirements during the period. (g) Ill health Retirements : Pension - 30 members received pensions on ill health retirements during the period. (h) Death : Pension - 27 members died and their dependants received pensions during the period. (i) Deaths : Lump sum - 5 members died and lump sums were paid to their estates during the period. 6