Rules of the. 1 August 2016: Updated with Amendment Documents No. 1 & 2. 1 September 2016: Updated with Amendment Document No. 3

Transcription

1 Rules of the 1 August 2016: Effective date of Rules 1 August 2016: Updated with Amendment Documents No. 1 & 2 1 September 2016: Updated with Amendment Document No. 3 1 August 2017: Updated with Amendment Document No. 4 1 December 2017: Updated with Amendment Document No. 5

2 Extract from the minutes of a meeting of the Board of Trustees held at Bellville on 8 April 2016 Page 2 of 108

3 Table of Contents 1 INTRODUCTION NAME OBJECT ESTABLISHMENT OF THE FUND LEGAL STATUS REGISTERED OFFICE DEFINITIONS 9 ACT: 10 ACTUARY: 10 ADJUDICATOR: 10 ADMINISTRATOR: 10 ANNUITY: 10 APPROVED PENSION PRESERVATION FUND: 10 APPROVED PROVIDENT PRESERVATION FUND: 10 APPROVED RETIREMENT ANNUITY FUND: 11 AUDITOR: 11 BENEFICIARY: 11 BOARD OF TRUSTEES: 11 CITY OF CAPE TOWN: 11 COMPLAINANT: 11 COUNCILLOR: 11 COUNCILLOR TRUSTEE: 12 DEFERRED MEMBER: 12 DEPENDANT: 12 EFFECTIVE DATE: 12 ELIGIBLE CHILD: 12 ELIGIBLE SPOUSE: 13 EMPLOYEE: 13 EXPECTED PENSION: 14 FUND: 14 GROWTH PORTFOLIO: 14 INSURER: 14 INCOME CONTINUATION BENEFITS: 14 INSURED RISK BENEFIT: 15 INVESTMENT CONSULTANT: 15 INVESTMENT MANAGER: 15 MEMBER: 15 MEMBER s SHARE: 15 MODERATE PORTFOLIO: 16 MUNICIPAL ELECTIONS 16 MUNICIPAL MANAGER: 16 NEW EMPLOYEE: 16 NORMAL RETIREMENT AGE: 17 NORMAL RETIREMENT DATE: 17 PARTICIPATING EMPLOYER: 17 PENSION: 17 PENSION FUND: 18 PENSIONABLE REMUNERATION: 18 PENSIONER: 18 Page 3 of 108

4 PRESERVATION PENSION ACCOUNT: 18 PREVIOUS SCHEME: 18 PRINCIPAL OFFICER: 19 PROTECTION PORTFOLIO: 19 RECOGNISED MATRIMONIAL UNION: 19 REGISTRAR: 19 RULES: 19 SERVICE: 20 SHARIAH PORTFOLIO: 20 TRANSFER VALUE: 20 TRUSTEES: MANAGEMENT OF THE FUND INTRODUCTION ELECTION OF TRUSTEES BOARD OF TRUSTEES MEETINGS OFFICE OF A TRUSTEE DUTIES OF THE BOARD OF TRUSTEES POWERS OF THE BOARD OF TRUSTEES LEGAL ACTIONS PERSONAL LIABILITY FIDELITY INSURANCE INDEMNIFICATION COMMITTEES APPOINTMENT OF OTHER PERSONS TRUSTEE COMPENSATION AMENDMENT TO THE RULES PRINCIPAL OFFICER APPOINTMENT OF PRINCIPAL OFFICER DUTIES OF THE PRINCIPAL OFFICER APPOINTMENT OF DEPUTY PRINCIPAL OFFICER: GENERAL MEETINGS MEMBERSHIP ELIGIBILITY AND ADMISSION SPECIAL PROVISIONS IN RESPECT OF NEW 36 EMPLOYEES A SPECIAL PROVISIONS IN RESPECT OF COUNCILLORS TERMINATION TERMINATION OF MEMBERSHIP OF A MUNICIPAL MANAGER TERMINATION OF MEMBERSHIP OF A COUNCILLOR FINANCIAL STRUCTURE OF THE FUND FUND ACCOUNTS COMPOSITION OF ACCOUNTS Member Share Account Pensions Account Reserve Accounts (A) Processing Reserve Account (B) Expense Reserve Account Risk Reserve Account 48 Page 4 of 108

5 6.2.5 Data Reserve Account CONTRIBUTIONS MEMBER CONTRIBUTIONS PARTICIPATING EMPLOYER CONTRIBUTIONS ADDITIONAL VOLUNTARY CONTRIBUTIONS PAYMENT OF CONTRIBUTIONS TEMPORARY ABSENCE RETIREMENT NORMAL RETIREMENT EARLY RETIREMENT COMPULSORY EARLY RETIREMENT LATE RETIREMENT COMMUTATION AND PENSION OPTIONS DEATH DEATH PRIOR TO RETIREMENT 60 CATEGORY A 61 CATEGORY B 61 CATEGORY C 62 CATEGORY D 62 CATEGORY E 62 CATEGORY F 62 CATEGORY G DEATH AFTER RETIREMENT FUNERAL BENEFITS DISABILITY BENEFITS LUMPSUM DISABILITY BENEFITS 65 CATEGORY A 66 CATEGORY B 66 CATEGORY C 67 CATEGORY D 67 CATEGORY E 67 CATEGORY F 67 CATEGORY G INCOME DISABILITY BENEFIT INCOME DISABILITY BENEFITS UP TO 30 JUNE INCOME DISABILITY BENEFITS WITH EFFECT FROM 1 OCTOBER NON INSURED RISK BENEFITS DREAD DISEASE BENEFIT WITHDRAWAL WITHDRAWAL BENEFIT REDUNDANCY OR RETRENCHMENT PRESERVATION BENEFIT TRANSFERS FROM OR TO OTHER FUNDS DEFERRED MEMBERS MISCELLANEOUS PROVISIONS REGARDING BENEFITS 80 Page 5 of 108

6 14.1 PAYMENT OF BENEFITS PAYMENT OTHER THAN SPECIFIED PARTICIPATING EMPLOYER S NOTIFICATION OF REASONS FOR TERMINATION OF SERVICE BENEFIT INSURANCE CESSATION OF INSURED RISK BENEFITS CONVERSION OPTION: RISK BENEFITS BENEFITS NON-ASSIGNABLE DEDUCTIONS FROM BENEFITS INTEREST ON LATE PAYMENT OF BENEFITS UNCLAIMED BENEFITS PAYMENT OF PENSIONS PENSION INCREASES HOUSING LOANS FINANCIAL MATTERS EXPENSES ACTUARIAL VALUATIONS INVESTMENTS BANK ACCOUNT INVESTMENT PROCEDURES GROWTH PORTFOLIO PROTECTION PORTFOLIO MODERATE PORTFOLIO SHARIAH PORTFOLIO GENERAL PROVISIONS MONIES NOT TO REVERT TO PARTICIPATING EMPLOYER COPIES OF DOCUMENTS COMPLAINTS PRESERVATION PENSION ACCOUNT TRANSFERS INTO THE PRESERVATION PENSION ACCOUNT FINANCIAL STRUCTURE OF THE PRESERVATION PENSION ACCOUNT RETIREMENT NORMAL RETIREMENT EARLY RETIREMENT COMPULSORY EARLY RETIREMENT LATE RETIREMENT COMMUTATION AND PENSION OPTIONS DEATH DISABILITY WITHDRAWAL RETRENCHMENT TRANSFERS OUT HOUSING LOANS PROTECTION PORTFOLIO MODERATE PORTFOLIO UNCLAIMED BENEFITS COSTS DEFERRED MEMBERS 106 Page 6 of 108

7 21. DISSOLUTION OF FUND 106 Page 7 of 108

8 1 INTRODUCTION These RULES are the RULES of the FUND, which are effective from the EFFECTIVE DATE of 1 August NAME The Cape Joint Retirement Fund was originally established in terms of Ordinance 23 of 1969 of the Cape Province and was registered in terms of the ACT with effect from 1 May Members of the Cape Joint Pension Fund were given the option to transfer to the Cape Joint Retirement Fund as at 1 May The name of the Fund was changed with effect from 1 July 2009 to the Cape Retirement Fund for Local Government. The name of the Fund was changed with effect from 1 July 2015 to the Consolidated Retirement Fund for Local Government. 1.2 OBJECT The object of the FUND is to provide retirement and ancillary benefits for the MEMBERS and BENEFICIARIES as set out in the RULES. 1.3 ESTABLISHMENT OF THE FUND The FUND is established for employees of participating municipalities, hospitals or other institutions as specified under PARTICIPATING EMPLOYER and these RULES apply to all such PARTICIPATING EMPLOYERS. Page 8 of 108

9 1.4 LEGAL STATUS The FUND is a separate legal entity registered in terms of the ACT, 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 REGISTERED OFFICE Amended 1 Aug 2017 The registered office of the FUND is at Combined HQ, 4 Bridal Close, Tyger Falls, Bellville or at such other address as may be determined by the FUND from time to time. 1.6 DEFINITIONS In these RULES where the context so requires: words and expressions defined in the ACT and not in the RULES shall bear the meanings assigned to them in the ACT; words and expressions importing one gender shall include the other gender; words and expressions denoting the singular number shall include the plural and vice versa; the headings are solely for ease of reference and are not to be taken into account in the interpretation of the RULES; and the following words and expressions shall bear the meanings assigned to them below. Page 9 of 108

10 ACT: the PENSION FUNDS ACT, 1956 (Act 24 of 1956), as amended, and the regulations framed there-under; ACTUARY: the valuator of the FUND appointed in terms of these RULES and the provisions of the ACT; ADJUDICATOR: the PENSION FUNDS ADJUDICATOR appointed in terms of the ACT; ADMINISTRATOR: the benefits ADMINISTRATOR appointed in terms of these RULES and the provisions of the ACT; ANNUITY: a pension purchased outside of the FUND for the benefit of a MEMBER and his dependants; APPROVED PENSION PRESERVATION FUND: a fund recognised in law as a pension preservation fund; APPROVED PROVIDENT PRESERVATION FUND: a fund recognised in law as a provident preservation fund; Page 10 of 108

11 APPROVED RETIREMENT ANNUITY FUND: a fund recognised in law as a retirement annuity fund; AUDITOR: an AUDITOR registered in terms of the Public Accountants and Auditors Act, 1991 (Act 80 of 1991) and appointed in terms of these RULES and the provisions of the ACT; BENEFICIARY: any person who is entitled to benefits in terms of these RULES; BOARD OF TRUSTEES: the TRUSTEES constituted in terms of these RULES to administer the FUND; CITY OF CAPE TOWN: a municipality established in terms of the Local Government Municipal Structures Act, 1998 (Act 117 of 1998); and in relation to a NEW EMPLOYEE, in whose SERVICE such NEW EMPLOYEE is, in relation to the provisions of RULE 5.2; COMPLAINANT: a complainant as defined in the ACT; COUNCILLOR: a member of a municipal council in terms of the Local Government Municipal Structures Act, 1998 (Act 117 of 1998); Page 11 of 108

12 Added 1 Dec 2017 COUNCILLOR TRUSTEE: A COUNCILLOR elected as a TRUSTEE as set out in RULE 2.2(1)(b); DEFERRED MEMBER: a member in respect of whom a deferred benefit has been retained in the FUND, the payment of which has not yet commenced; DEPENDANT: a dependant as defined in the ACT; EFFECTIVE DATE: the date upon which the registered RULES or RULE amendments become effective; ELIGIBLE CHILD: a PENSIONER S child or stepchild, whether born out of wedlock or not, or, on proof of adoption to the satisfaction of the FUND, an adopted child, who- (a) in the case of a PENSIONER, was- (i) a child when such PENSIONER retired; or (ii) born of a marriage subsisting when such PENSIONER retired; (b) in the case of a stepchild or a child born out of wedlock, is dependent on the PENSIONER; Page 12 of 108

13 (i) is under the age of eighteen years; (ii) is under the age of twenty-one years and is, in the opinion of the FUND, receiving full-time education; (iii) is, in the opinion of the FUND permanently incapacitated by reason of physical or mental infirmity from being selfsupporting; All PENSIONS payable to an ELIGIBLE CHILD will be paid in terms of the applicable TRUSTEE GUIDELINES, PROTOCOL POLICY. ELIGIBLE SPOUSE: the surviving partner of a MEMBER (a) when such MEMBER died while in SERVICE and a benefit was payable to such a partner, or (b) in receipt of a PENSION if married to the MEMBER when the MEMBER retired from SERVICE. A surviving partner shall include a party to a RECOGNISED MATRIMONIAL UNION or custom recognised as a marriage as defined herein, provided that, in the event of multiple partners, the FUND may in their sole discretion, allocate such benefit in such proportions as they may deem fit; EMPLOYEE: any person who is in the SERVICE of and remunerated by a PARTICIPATING EMPLOYER and who is not regarded as a NEW EMPLOYEE; Page 13 of 108

14 EXPECTED PENSION: the PENSION as calculated by the ACTUARY, at an investment rate net of inflation, that would be payable to a MEMBER on his NORMAL RETIREMENT DATE if his PENSIONABLE REMUNERATION, as at that particular point in time, were to remain unchanged until his NORMAL RETIREMENT DATE; FUND: the CONSOLIDATED RETIREMENT FUND FOR LOCAL GOVERNMENT; FUND YEAR: means from 1 July to 30 June; GROWTH PORTFOLIO: a default investment portfolio wherein the MEMBER SHARES and PRESERVATION PENSION ACCOUNT values are invested of those MEMBERS who are not invested in other investment portfolios; INSURER: an INSURER registered in terms of the Long Term Insurance Act, 1998, to transact long term or disability insurance business; INCOME CONTINUATION BENEFITS: the monthly income payable to a disabled MEMBER by the INSURER in terms of the INSURED RISK BENEFIT policy applicable to category E MEMBERS; Page 14 of 108

15 INSURED RISK BENEFIT: the risk benefits (death, disability and funeral benefits) reinsured by the FUND in terms of a policy of insurance; INVESTMENT CONSULTANT: the investment consultant(s) registered by the REGISTRAR in terms of the ACT and appointed by the BOARD OF TRUSTEES from time to time to advise them in respect of the investment of the FUND s assets; INVESTMENT MANAGER: an institution registered by the REGISTRAR in terms of the ACT and authorised in terms of such approval to administer the investment of retirement fund assets and which is appointed in terms of these RULES by the BOARD OF TRUSTEES from time to time; MEMBER: a MEMBER as defined in the ACT; MEMBER s SHARE: the individual MEMBER s SHARE which is held by the FUND in respect of each MEMBER in terms of the RULES; Added 1 Dec 2017 MEMBER TRUSTEE: A MEMBER elected as a TRUSTEE as set out in RULE 2.2(1)(a); Page 15 of 108

16 MINIMUM INDIVIDUAL RESERVE: the minimum individual reserve payable to an exiting MEMBER as contemplated in the ACT and as calculated by the ACTUARY; MODERATE PORTFOLIO: an investment portfolio that provides less risk exposure than the GROWTH PORTFOLIO but more risk than the PROTECTION PORTFOLIO; Added 1 Aug 2016 MUNICIPAL ELECTIONS the general municipal elections which are held in South Africa from time to time; MUNICIPAL MANAGER: a person who has been appointed as a municipal manager as defined in the Municipal Systems Act, 2000 (Act No. 32 of 2000) and this definition shall include a manager who is directly accountable to the municipal manager and who has been appointed in terms of sections 56 and 57 of the Municipal Systems Act, 2000; NEW EMPLOYEE: an employee who either at the time of joining the FUND was employed on a contract with the CITY OF CAPE TOWN, or who, has subsequently been newly employed by the CITY OF CAPE TOWN from 1 August 2006 and where the CITY OF CAPE TOWN has applied to the FUND for the employee to join this new membership category. Page 16 of 108

17 This definition will include all employees employed by any PARTICIPATING EMPLOYER and who elected to join the FUND since 1 January NORMAL RETIREMENT AGE: the age of 60 years. NORMAL RETIREMENT DATE: any day during the month in which a member attains his NORMAL RETIREMENT AGE; PARTICIPATING EMPLOYER: (a) any type of municipality established in terms of legislation and in relation to a MEMBER, the municipality in whose SERVICE such MEMBER is; (b) any hospital or other institution that fulfil the requirements of a paragraph (a) pension fund as defined in the Income Tax Act that participate in the FUND and in whose SERVICE such MEMBER is. A PARTICIPATING EMPLOYER shall be deemed to participate in the FUND once contributions are paid to the FUND in respect of any employee or COUNCILLOR of such PARTICIPATING EMPLOYER; PENSION: a PENSION payable by the FUND to a PENSIONER or to an ELIGIBLE SPOUSE or ELIGIBLE CHILD in terms of factors provided by the ACTUARY from time to time; Page 17 of 108

18 PENSION FUND: a fund recognised in law as a pension fund which pays a maximum commutation on retirement of one-third (1/3 rd ) of the value of the benefit; PENSIONABLE REMUNERATION: the remuneration on which contributions are paid and which remuneration shall be determined by the PARTICIPATING EMPLOYER and which shall be advised by the PARTICIPATING EMPLOYER to the FUND each month. Provided that the PENSIONABLE REMUNERATION in respect of a category E member who is in receipt of a monthly INCOME CONTINUATION BENEFIT from the INSURER shall be the PENSIONABLE REMUNERATION as at the date of disability increased annually by the percentage increase applied by the INSURER to the monthly INCOME CONTINUATION BENEFIT; PENSIONER: a BENEFICIARY who is in receipt of a PENSION from the FUND; PRESERVATION PENSION ACCOUNT: an account which has been set up within the FUND in order to receive benefits from a PENSION FUND; PREVIOUS SCHEME: the transferor fund from which a MEMBER transfers his benefit into this FUND; Page 18 of 108

19 PRINCIPAL OFFICER: the person appointed by the BOARD OF TRUSTEES in terms of these RULES and the ACT; PROTECTION PORTFOLIO: a conservative investment portfolio which offers the least risk exposure; RECOGNISED MATRIMONIAL UNION: a legal marriage or a union according to customary law or a union recognised as a marriage under any religion of a PENSIONER and another person, which is deemed a RECOGNISED MATRIMONIAL UNION by the FUND; provided that a RECOGNISED MATRIMONIAL UNION may, at the discretion of the BOARD OF TRUSTEES include a legal marriage which has been dissolved but where the other person is still to some degree financially dependent upon the PENSIONER; REGISTRAR: the REGISTRAR of PENSION FUNDS appointed in terms of the Financial Services Board Act, 1990 (Act No. 97 of 1990); RULES: these RULES as amended from time to time; Page 19 of 108

20 SERVICE: SERVICE as an EMPLOYEE, or otherwise, of one or more PARTICIPATING EMPLOYERS depending upon the applicable conditions of employment; SHARIAH PORTFOLIO: an investment portfolio which meets the requirements of Shariah law; TRANSFER VALUE: the benefit transferred from the PREVIOUS SCHEME which shall be credited to the MEMBER S SHARE or PRESERVATION PENSION ACCOUNT in the FUND; TRUSTEE GUIDELINES, PROTOCOL AND POLICIES: documents approved by the BOARD OF TRUSTEES from time to time which details the application and procedure of any matter referred to in the RULES and the ACT; TRUSTEES: the individual TRUSTEES who are represented on the BOARD OF TRUSTEES; UNCLAIMED BENEFIT: an unclaimed benefit as defined in the ACT; Page 20 of 108

21 2. MANAGEMENT OF THE FUND 2.1. INTRODUCTION The FUND is controlled and managed in terms of these RULES by the BOARD OF TRUSTEES which itself or through its duly authorised assignees acts for and on behalf of the FUND. Amended 1 Dec ELECTION OF TRUSTEES (1) The FUND shall be managed in terms of these RULES by a BOARD OF TRUSTEES. The BOARD OF TRUSTEES must arrange elections of TRUSTEES whenever required in terms of the RULES. The BOARD OF TRUSTEES will consist of twelve (12) members of which - (a) eight (8) MEMBER TRUSTEES shall be elected by MEMBERS on a geographical basis as follows: (i) four (4) MEMBER TRUSTEES from the Western Cape; (ii) two (2) MEMBER TRUSTEES from the Eastern Cape; (iii) two (2) MEMBER TRUSTEES from the Northern Cape representing the Northern Region (referring to those provinces other than the Western Cape and Eastern Cape); and (b) four (4) COUNCILLOR TRUSTEES shall be elected by COUNCILLORS, who are also MEMBERS, on a geographical basis as follows: (i) two (2) COUNCILLOR TRUSTEES from the Western Cape; Page 21 of 108

22 (ii) one (1) COUNCILLOR TRUSTEES from the Eastern Cape; (iii) one (1) COUNCILLOR TRUSTEE from the Northern Cape representing the Northern Region (referring to those provinces other than the Western Cape and Eastern Cape), (c) provided that a COUNCILLOR who is also a MEMBER may not act simultaneously as a MEMBER TRUSTEE and a COUNCILLOR TRUSTEE. (2) Only a serving TRUSTEE or a nominated MEMBER (who in writing has declared willing to serve) may be elected as a TRUSTEE. (3) A MEMBER may nominate as many MEMBERS for election as TRUSTEES as is required at the time. Each nomination must be in writing and seconded by a minimum of five (5) MEMBERS. (4) The TRUSTEE elected will fill the vacancy on the BOARD OF TRUSTEES in the specific geographical area. (5) The basis of election of a TRUSTEE shall be by a simple majority vote either on forms or electronically. (6) TRUSTEES shall hold office for a period of five (5) years. (7) A newly elected TRUSTEE must have such levels of skills as prescribed in the TRUSTEE GUIDELINES, PROTOCOL AND POLICIES and as prescribed by the REGISTRAR as required in terms of the ACT. Page 22 of 108

23 2.2.1 BOARD OF TRUSTEES MEETINGS Amended 1 Dec 2017 (1) As soon as possible after the election of the TRUSTEES, but not later than three (3) months after taking up office, the TRUSTEES shall hold an ordinary meeting. Such meeting shall be chaired by the PRINCIPAL OFFICER for the duration of the election of the chairperson. The TRUSTEES shall by secret ballot elect a chairperson and a deputy chairperson from amongst their number. In the event of an equality of votes when voting by ballot, a second secret ballot election will be executed for the people who received equal votes. If there still is an equality of votes after the second secret ballot election, the matter shall be determined by drawing lots. The elected chairperson and deputy chairperson shall serve in such capacity for a period of five (5) years. (2) The deputy chairperson shall act as chairperson in the event of the chairperson being absent or unwilling to act or incapable of acting. (3) Should both the chairperson and deputy chairperson be absent or unwilling to act or incapable of acting, the TRUSTEES present at the meeting shall elect a chairperson for that meeting from the TRUSTEES present at the meeting. (4) In the event of the chairperson resigning as a TRUSTEE or as the chairperson before the expiry of his term, the deputy chairperson shall assume the role of chairperson. A new deputy chairperson shall be elected by secret ballot. Page 23 of 108

24 (5) The BOARD OF TRUSTEES shall meet at least once every three (3) months. Provided that the chairperson may from time to time convene additional meetings or when requested thereto by at least eight (8) TRUSTEES. (6) Fifty percent plus one (50% plus 1) of the total TRUSTEES on the BOARD OF TRUSTEES shall constitute a quorum, provided that at least four (4) MEMBER TRUSTEES are present. Amended 1 Dec 2017 (7) Decisions by the BOARD OF TRUSTEES at a meeting shall be made by a majority of votes of the TRUSTEES present, provided that if there is an equality of votes, the chairperson of the meeting will have a casting vote. (8) Any urgent matter may be decided upon by majority decision of the full BOARD OF TRUSTEES in terms of a round robin decision taken by electronic means. Added 1 Dec 2017 (9) Video and telephone conferencing (a) The BOARD OF TRUSTEES may, if the chairperson so decides, conduct a meeting by using a conference telephone or any communication equipment (including video link) that allows everybody participating in the meeting to speak to and hear each other. (b) Taking part in a meeting conducted in terms of this rule will, provided there is a quorum, be counted as a meeting of the BOARD OF TRUSTEES. Page 24 of 108

25 (c) The remaining provisions of these RULES applicable to meetings of the BOARD OF TRUSTEES apply to any meeting conducted in this manner OFFICE OF A TRUSTEE (1A) Notwithstanding the provisions of sub rules 2.2(4), 2.2(5) and 2.2(7) the office of a TRUSTEE shall become vacant if a TRUSTEE- (a) contemplated by sub rule 2.2(1)(a), ceases to be a MEMBER of the FUND; Amended 1 Aug 2016 Amended 1 Dec 2017 (b) contemplated by sub rule 2.2(1)(b), ceases to be a COUNCILLOR; (c) at any time tenders his resignation in writing from a specified date as a TRUSTEE; (d) becomes of unsound mind or is subject to a reception order in terms of the Mental Health Act, 1973 (Act 18 of 1973), or has been declared by a competent court to be incapable of managing his affairs; (e) has been declared insolvent or has surrendered or assigned his estate for the benefit of his creditors; (f) is found guilty, whether in the Republic of South Africa or elsewhere of misconduct of which dishonesty is an element; Page 25 of 108

26 (g) is convicted, whether in the Republic of South Africa or elsewhere of any crime of which dishonesty is an element irrespective if such conviction is under appeal; (h) is convicted of any crime after 1994, whether in the Republic of South Africa or elsewhere and is sentenced to imprisonment without the option of a fine irrespective if such conviction or sentence is under appeal; (i) after a due process and investigation has taken place by the BOARD OF TRUSTEES, is found guilty of a breach of the code of conduct. (1B) The provisions of sub rule (1A) shall apply to any person who is nominated to stand as a TRUSTEE as well as a person who is serving as a TRUSTEE. Amended 1 Dec 2017 (2) Any vacancy on the BOARD OF TRUSTEES shall be filled as set out in the TRUSTEE GUIDELINES, PROTOCOL AND POLICIES. Amended 1 Dec 2017 (3) A TRUSTEE who is filling a vacancy in terms of RULE 2.2.2(1B)(2) above shall hold office for the unexpired period of his predecessor's term. Deleted 1 Dec 2017 (4) (5) Any vacancy on the BOARD OF TRUSTEES must be filled within the period prescribed by the Registrar. (6) When a TRUSTEE is removed from office other than as a result of the expiry of his term of office or by Page 26 of 108

27 voluntary resignation, the TRUSTEE must provide the REGISTRAR with written reasons for such removal within the prescribed period and in the prescribed format. 2.3 DUTIES OF THE BOARD OF TRUSTEES (1) The BOARD OF TRUSTEES shall (a) take all reasonable steps to ensure that the interests of MEMBERS in terms of the RULES and the provisions of the ACT are protected at all times; (b) act with due care, diligence and good faith; (c) avoid conflicts of interest; (d) act with impartiality in respect of all MEMBERS, PENSIONERS and BENEFICIARIES; (e) have and be entitled to exercise all powers, rights and privileges vested upon them in accordance with the provisions of these RULES and all relevant legislation; (f) ensure that proper control systems are employed by or on behalf of the FUND; (g) (h) ensure that adequate and appropriate information is communicated to MEMBERS informing them of their rights, benefits and duties in terms of the RULES; ensure that contributions are paid timeously to the FUND in accordance with the provisions of the ACT; (i) obtain expert advice on matters where the BOARD OF TRUSTEES deem it necessary; Page 27 of 108

28 (j) ensure that the RULES and the operation and administration of the FUND comply with the provisions of the ACT and any other relevant legislation; (k) ensure that proper books and records of the operations of the FUND are kept to ensure the proper management of the FUND and that the books are closed off as at the end of the FUND YEAR and that these are audited by the AUDITOR; (l) approve the FUND s accounts and make available copies for inspection by MEMBERS or any other person who has an interest in the FUND; (m) maintain in accordance with the ACT, at the FUND s registered office, registers containing the information as prescribed in the ACT; (n) carry out all other duties as required by the ACT; (o) be subject to the code of conduct as approved by the BOARD OF TRUSTEES. 2.4 POWERS OF THE BOARD OF TRUSTEES LEGAL ACTIONS The BOARD OF TRUSTEES may in the name of the FUND institute and defend legal actions required to promote or safeguard the interests of the FUND. Page 28 of 108

29 2.4.2 PERSONAL LIABILITY (1) The BOARD OF TRUSTEES and sub-committees are not personally liable for any loss which the PARTICIPATING EMPLOYERS, MEMBERS, PENSIONERS or BENEFICIARIES may suffer as a result of their actions, provided that the actions are in accordance with the RULES, applicable legislation and are bona fide. (2) The BOARD OF TRUSTEES shall ensure that the FUND s service providers effect and maintain insurance to adequately indemnify the FUND against losses which may result from the negligence, dishonesty or fraud of any service provider or of any person employed by such service provider FIDELITY INSURANCE (1) The BOARD OF TRUSTEES shall ensure that the FUND is insured at its own expense against loss due to the dishonesty or fraud of any of the officers of the FUND, including the TRUSTEES and any other person to whom they have delegated their functions, having the receipt or charge of monies belonging to the FUND. (2) The BOARD OF TRUSTEES shall ensure that the ADMINISTRATOR, INVESTMENT CONSULTANT, INVESTMENT MANAGERS and other service providers effect and maintain insurance to adequately indemnify the FUND against losses which may occur as a result of the negligence, dishonesty or fraud of any person employed by such service provider. Page 29 of 108

30 2.4.4 INDEMNIFICATION In the interpretation of the RULES or in the performance of any duties imposed upon them by the RULES and the ACT, the BOARD OF TRUSTEES and any person to whom they have delegated any of their functions, shall not be liable for any bona fide actions COMMITTEES (1) The BOARD OF TRUSTEES may delegate any power that is vested in them, on such terms and conditions as they may specify to a sub-committee or an ad-hoc committee of TRUSTEES, the PRINCIPAL OFFICER, a TRUSTEE or service provider. (2) The BOARD OF TRUSTEES may establish an ad-hoc committee which will have a specific mandate and such committee shall be dissolved on completion of its duties as mandated by the BOARD OF TRUSTEES. (3) Minutes shall be kept of all such committee meetings and these shall be presented to the next BOARD OF TRUSTEES meeting for noting, consideration or ratification, as the case may be. (4) A majority (50% plus one) of the number of the members of such committee shall constitute a quorum. (5) Where the chairperson of the BOARD OF TRUSTEES is represented on a sub-committee and is unable or unwilling to attend a meeting of the sub-committee, the deputy chairperson of the BOARD OF TRUSTEES shall act in his place. Page 30 of 108

31 (6) Where a quorum is not present at such committee meeting, the members present may only consider matters on the agenda for recommendation to the BOARD OF TRUSTEES APPOINTMENT OF OTHER PERSONS APPOINTMENT OF THE ADMINISTRATOR The BOARD OF TRUSTEES may appoint an ADMINISTRATOR to administer the FUND in terms of the RULES and the provisions of the ACT on such terms as the BOARD OF TRUSTEES may determine APPOINTMENT OF THE ACTUARY (1) The BOARD OF TRUSTEES shall appoint an ACTUARY, subject to the provisions of the ACT on such terms and for such period as they may determine. (2) The ACTUARY shall be the valuator of the FUND as provided for in the ACT and for the purposes of the investigation of the financial condition of the FUND and reporting thereof in compliance with the ACT. (3) The ACTUARY shall have access to the relevant MEMBER and PENSIONER data and financial records to enable him to certify the financial condition of the FUND. Page 31 of 108

32 APPOINTMENT OF THE AUDITOR (1) The BOARD OF TRUSTEES shall appoint an AUDITOR, subject to the provisions of the ACT on such terms and for such period as they may determine. (2) The AUDITOR shall have access to all books, accounts, vouchers and other documents pertaining to the FUND and shall certify the result of each audit in writing OTHER APPOINTMENTS The BOARD OF TRUSTEES may appoint such service providers or employees as they may deem necessary for the proper execution of the FUND s activities and at such salaries or fees and on such terms and conditions as they may decide TRUSTEE COMPENSATION The TRUSTEES and the independent members serving on subcommittees may be compensated and /or reimbursed in accordance with the policies and procedures as adopted by the BOARD OF TRUSTEES from time to time. 2.5 AMENDMENT TO THE RULES (1) Subject to the provisions of the ACT, the BOARD OF TRUSTEES may amend, rescind or add to these RULES at any time. The BOARD OF TRUSTEES will determine the EFFECTIVE DATE of any RULE amendment. Page 32 of 108

33 (2) The amendment shall not be inconsistent with the ACT or other applicable legislation and provided that any amendment to the RULES affecting the financial basis of the FUND shall be referred to the ACTUARY before being adopted. (3) The FUND shall submit the amendment to the REGISTRAR for registration. (4) Once an amendment has been registered by the REGISTRAR, the FUND shall submit details of such amendment at the next annual general meeting for notification. (5) The provisions of the RULES and any regulation made there-under by the BOARD OF TRUSTEES shall be binding on the FUND and its officials, the MEMBERS, the PENSIONERS, any BENEFICIARY, the PARTICIPATING EMPLOYERS and any person who institutes a claim against the FUND. 3. PRINCIPAL OFFICER 3.1 APPOINTMENT OF PRINCIPAL OFFICER (1) The BOARD OF TRUSTEES shall appoint a PRINCIPAL OFFICER on such terms and conditions as they may determine and in accordance with the provisions of the ACT. (2) If the PRINCIPAL OFFICER is absent in terms of the provisions of the ACT or is unable for any reason to discharge his duties for more than the time period prescribed in the ACT, the BOARD OF TRUSTEES shall appoint another person as PRINCIPAL OFFICER of the FUND for such period of absence or incapacity. In this event, the BOARD OF TRUSTEES shall inform the REGISTRAR thereof in writing in terms of the provisions of the ACT. (3) The PRINCIPAL OFFICER shall not hold the position of a TRUSTEE. Page 33 of 108

34 3.2 DUTIES OF THE PRINCIPAL OFFICER The PRINCIPAL OFFICER s task is to administer the business of the FUND and to implement the resolutions, policies and strategies adopted by the BOARD OF TRUSTEES. The PRINCIPAL OFFICER shall be responsible for the statutory duties set out in the ACT as well as the duties specified in his contract of employment and/or as determined by the BOARD OF TRUSTEES from time to time. 3.3 APPOINTMENT OF DEPUTY PRINCIPAL OFFICER: (1) The BOARD OF TRUSTEES may appoint a deputy principal officer on the terms and conditions provided for in the ACT. (2) The PRINCIPAL OFFICER may delegate in writing to the deputy principal officer any of his duties under the ACT and the RULES, including the performance of his duties during any extended absence. (3) The BOARD OF TRUSTEES may delegate certain functions to the deputy principal officer from time to time. 4. GENERAL MEETINGS Deleted 1 Dec 2017 Page 34 of 108

35 5. MEMBERSHIP 5.1 ELIGIBILITY AND ADMISSION (a) Every person who joins the SERVICE of a PARTICIPATING EMPLOYER shall be obliged to become a MEMBER of either this FUND or any other approved FUND in which the PARTICIPATING EMPLOYER participates. Membership and payment of benefits from the FUND are suspended pending the submission of the minimum information referred to in the RULES and the ACT. (b) A person who becomes a MEMBER in terms of (a) above shall produce such evidence as to the state of his health as the INSURER underwriting the INSURED RISK BENEFITS shall require. Such MEMBER shall be subject to such restrictions in benefits as the INSURER shall determine. Provided that until evidence of health, where required, has been ascertained to the satisfaction of the INSURER, a MEMBER shall not be eligible to full INSURED RISK BENEFITS. (c) (i) MEMBERS under age 65 years who join the FUND and who do not elect their choice of risk option category automatically become category A MEMBERS, but may elect to change to another category by giving written notice in the prescribed format addressed to the FUND within ninety (90) days after joining the FUND. (ii) Membership of category D will be closed to MEMBERS joining the FUND from 1 October 2013, unless such MEMBER is age 50 years and over or a COUNCILLOR. Page 35 of 108

36 (iii) With effect from 1 July 2015, all MEMBERS in category D will be transferred to category G except for MEMBERS who are 50 years and older on this date or who are COUNCILLORS. Affected MEMBERS, who are not COUNCILLORS and who are younger than 50 years of age on 1 July 2015 will have the option to elect to remain in category D by completing the prescribed form and by submitting a motivation to the FUND in the prescribed format within the time frames stipulated by the FUND. (iv) MEMBERS between ages 65 and 75 years who join the FUND and who do not elect their choice of risk option category automatically become category F MEMBERS, but may elect to change to category D by giving written notice in the prescribed format addressed to the FUND within ninety (90) days after joining the FUND. (d) Each category of membership has a separate and distinct contribution rate and level of benefits. (e) A MEMBER may change his category of membership under the circumstances and on such conditions as contained in the INSURED RISK BENEFIT policies. A MEMBER must inform the FUND in writing of any change in category within the specified time period specified in the INSURED RISK BENEFIT policies. 5.2 SPECIAL PROVISIONS IN RESPECT OF NEW EMPLOYEES (a) Subject to the provisions of the preceding RULES, a NEW EMPLOYEE may become a MEMBER of the FUND as from the first day of the month coinciding with or the next month following his becoming a NEW EMPLOYEE. Page 36 of 108

37 (a) All the provisions of the RULES shall apply mutatis mutandis to any NEW EMPLOYEE. Provided that the provisions of RULES 8.3, 8.4 and 11.2 applicable to compulsory early retirement, late retirement and redundancy and retrenchment shall not apply to such NEW EMPLOYEE, unless specifically provided for in their contracts of employment. 5.2A SPECIAL PROVISIONS IN RESPECT OF COUNCILLORS (a) (b) (c) Subject to the provisions of the preceding RULES, a COUNCILLOR may become a MEMBER of the FUND as from the first day of the month coinciding with or the next month following his becoming eligible to do so based on the provisions contained in his term of office arrangement. All the provisions of the RULES shall apply mutatis mutandis to any COUNCILLOR, unless in conflict with this RULE. The provisions applicable to RULES 8.3 and 11.2 in respect of compulsory early retirement and redundancy or retrenchment shall not apply to a COUNCILLOR unless specifically provided for in his term of office arrangement. 5.3 TERMINATION No MEMBER may terminate his membership of the FUND while he remains in SERVICE; and his membership shall cease upon termination of his SERVICE, unless otherwise provided for in these RULES. Page 37 of 108

38 5.4 TERMINATION OF MEMBERSHIP OF A MUNICIPAL MANAGER A MEMBER who is appointed as a MUNICIPAL MANAGER or a manager directly accountable to the MUNICIPAL MANAGER in terms of the Municipal Systems Act, 2000 shall have the option to terminate their membership of the FUND on such appointment. A MEMBER who is either appointed or re-appointed on the above basis or a MEMBER who is appointed as a permanent employee with a new contract of employment by a municipality will have three (3) months from the date of such appointment or re-appointment to inform the FUND of their decision to either terminate their membership of the FUND or to remain as a MEMBER of the FUND. Where a MEMBER decides to terminate their membership of the FUND, the MEMBER will be entitled to their MEMBER s SHARE in the FUND. Any benefit payable in terms of this RULE may be subject to a deduction by the FUND as allowed in terms of the RULES, the ACT and all other applicable legislation. The FUND may for a reasonable period of time, withhold payment of the MEMBER s benefit, for the purpose of any cause stipulated in Section 37D of the ACT and all other applicable legislation. Amended 1 Dec 2017 A MEMBER who decides to terminate his membership of the FUND in terms of this paragraph shall be allowed to elect to become a DEFERRED MEMBER and in such instance the provisions of RULE 13 shall apply mutatis mutandis. On a MEMBER s termination of membership of the FUND in terms of this RULE, their INSURED RISK BENEFITS will cease, but the MEMBER shall be entitled to elect the conversion option applicable to the INSURED RISK BENEFITS as set out in the INSURER s risk benefit policy. Page 38 of 108

39 5.5 TERMINATION OF MEMBERSHIP OF A COUNCILLOR Apart from the existing provisions contained in these RULES and subject to legislation, a COUNCILLOR may terminate his membership of the FUND on the happening of specific events: (a) His term of office as a COUNCILLOR comes to an end in any manner; (b) A change in status from full-time COUNCILLOR to part-time COUNCILLOR; (c) The COUNCILLOR ceases contributions due to a restructuring of his remuneration package. In the event of a COUNCILLOR ceasing contributions and electing to terminate his membership of the FUND in terms of this RULE, the MEMBER s SHARE and any benefit in the PRESERVATION PENSION ACCOUNT subject to the provisions of RULE 20 shall be paid to him. The exiting COUNCILLOR may elect to preserve such benefit in terms of RULE 11.3 subject to the provisions of the Income Tax Act. 6. FINANCIAL STRUCTURE OF THE FUND 6.1 FUND ACCOUNTS The assets of the FUND shall be held in various accounts, to be known as the Member Share Account, the Pensions Account, the Processing Reserve Account, the Expense Reserve Account, the Risk Reserve Account and the Data Reserve Account. Each account shall Page 39 of 108

40 be maintained separately from the others and transfers between accounts shall take place as specified in the RULES. Added 1 Sep 2016 Details of investment return allocations and the operation of the various accounts are contained in a TRUSTEE GUIDELINES, PROTOCOL AND POLICIES DOCUMENT. 6.2 COMPOSITION OF ACCOUNTS Member Share Account The Member Share Account shall comprise all the MEMBERS' SHARES. Each MEMBER s SHARE shall comprise: (a) Credits (i) TRANSFER VALUES received on behalf of the MEMBER; (ii) the MEMBER's contributions made in terms of these RULES; (iii) the nett PARTICIPATING EMPLOYER s contributions made on behalf of the MEMBER in terms of these RULES after the costs associated with the INSURED RISK BENEFITS premiums and the FUND expenses have been deducted; (iv) additional voluntary contributions made in terms of these RULES; Amended 1 Sep 2016 (v) investment earnings on the assets underlying this particular account. Such investment earnings shall be based on the investment Page 40 of 108

41 yield achieved by the particular portfolio during the period for which the said earnings are credited to the MEMBER SHARE ACCOUNT; (vi) additional amounts payable by the PARTICIPATING EMPLOYER in terms of these RULES in respect of exiting MEMBERS; Amended 1 Sep 2016 (vii) special transfers from the Processing Reserve Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (viii) transfers from the Risk Reserve Account and the Data Reserve Account in terms of RULE 6.2.4(b)(ii) representing the reinsured lump sum death and disability benefits payable in terms of these RULES and RULE 6.2.5(b)(i) as a result of changes to MEMBER data. (b) Debits Amended 1 Sep 2016 (i) adjustments to the investment earnings on the assets underlying this particular account based on the investment yield achieved by the particular portfolio during the period for which the said earnings are debited to the MEMBER SHARE ACCOUNT; (ii) lump sum benefits paid to the MEMBER or benefits transferred to an INSURER together with any tax payable thereon; (iii) transfers to the Pensions Account of the balance of the MEMBER s SHARE after the Page 41 of 108

42 payment of any lump sum benefit on retirement; (iv) settlement of housing loans and the tax payable thereon; (v) payment of any pension interest in terms of a valid divorce order to the non-member spouse; (vi) payment of any amount in terms of a valid maintenance order or court order and the tax payable thereon, if any; (vii) amounts transferred to the Data Reserve Account as a result of changes to MEMBER data. Added 1 Sep 2016 (viii) special transfers to the Processing Reserve Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY Pensions Account The Pensions Account comprises an account in respect of all PENSIONS in the course of payment to PENSIONERS. The following transactions shall be recorded in this account: (a) Credits (i) an opening balance, as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (ii) transfers from the Member Share Account in terms of RULE 6.2.1(b)(iii); Page 42 of 108

43 (iii) transfers from the Risk Reserve Account, in respect of the reinsured disability income benefits payable in terms of RULE ; Amended 1 Sep 2016 (iv) investment earnings on the assets underlying this particular account. Such investment earnings shall be based on the investment yield achieved by the particular portfolio during the period for which the said earnings are credited to the Pensions Account; (v) such amount paid by the PARTICIPATING EMPLOYERS to eliminate an actuarial shortfall in the Pensions Account, as calculated by the ACTUARY; (vi) transfers from the Data Reserve Account as a result of changes to PENSIONER data; Amended 1 Sep 2016 (viii) transfers from the Risk Reserve Account in terms of RULE 9.2(d) representing the uninsured lump sum death after retirement benefit; Added 1 Sep 2016 (ix) special transfers from the Processing Reserve Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY. (b) Debits (i) PENSIONS and other regular instalments payable in terms of the RULES; Amended 1 Sep 2016 (ii) the cash value payable of any positive difference as contemplated in RULE 9.2; Page 43 of 108

44 (iii) transfers to the Expense Reserve Account in respect of PENSIONER expenses as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; Amended 1 Sep 2016 (iv) adjustments to the investment earnings on the assets underlying this particular account based on the investment yield achieved by the particular portfolio during the period which the said earnings are debited to the Pensions Account; (v) amounts transferred to the Data Reserve Account as a result of changes to PENSIONER data. Added 1 Sep 2016 (vi) special transfers to the Processing Reserve Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY Reserve Accounts The Reserve Accounts are established to provide for contingencies and obligations of the FUND not covered by the Member Share Account or the Pensions Account, and represents a record of all monies of the FUND not allocated to those accounts. The Reserve Accounts comprise some or all of the following components, each of which is to be determined by the BOARD OF TRUSTEES in consultation with the ACTUARY: 6.2.3(A) Processing Reserve Account The Processing Reserve Account has been established to account for differences between the actual nett FUND returns and the returns allocated to the Member Share Account, the Page 44 of 108

45 Pensions Account and the various Reserve Accounts. The following transactions shall be recorded in the Processing Reserve Account: (a) Credits Amended 1 Sep 2016 (i) any positive balance of investment earnings not allocated to any other account; Amended 1 Sep 2016 (ii) amounts debited to the Member Share Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; Amended 1 Sep 2016 (iii) amounts debited to the PRESERVATION PENSION ACCOUNT as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; Amended 1 Sep 2016 (iv) transfers from the Pensions Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (v) any income distributed in terms of RULE 6.2.3(B)(b)(ii); (vi) adjustments debited to the Risk Reserve Account and the Data Reserve Account; Page 45 of 108

46 (vii) any other income attributable to the FUND not specified elsewhere in the RULES. (b) Debits Amended 1 Sep 2016 (i) amounts transferred to the Member Share Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; Amended 1 Sep 2016 (ii) amounts transferred to the Pensions Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (iii) transfers to the Risk Reserve Account and Data Reserve Account representing investment returns; Amended 1 Sep 2016 (iv) amounts transferred to the PRESERVATION PENSION ACCOUNT as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (v) any other payments by the FUND not specified elsewhere in the RULES. Added 1 Sep 2016 (vi) any negative balance of investment earnings not allocated to any other account. Page 46 of 108

47 6.2.3(B) Expense Reserve Account The Expense Reserve Account has been established to meet the ongoing FUND expenses. The following transactions shall be recorded in the Expense Reserve Account: (a) Credits a. the amount determined from time to time which is paid out of the PARTICIPATING EMPLOYER contributions to cover FUND expenses; b. transfers from the Pensions Account in terms of RULE 6.2.2(b)(iii) in respect of the PENSIONER expenses. (b) Debits (i) all costs and expenses referred to in these RULES; (ii) at the end of each FUND YEAR, any remaining balance whether positive or negative shall be allocated to the Processing Reserve Account. Page 47 of 108

48 6.2.4 Risk Reserve Account The Risk Reserve Account has been established: to absorb the impact of an adverse experience in the uninsured risk benefits; to account for reinsurance payments to the FUND and insured death benefits transferred to the Member Share Account and Pensions Account. The following transactions shall be recorded in the Risk Reserve Account: (a) Credits (i) an opening balance as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY; (ii) reinsurance payments made to the FUND by an INSURER; (iii) the amount of the INSURED RISK BENEFIT premiums which is paid out of the PARTICIPATING EMPLOYER contributions together with any refund of reinsurance premiums which have been overpaid to an INSURER; Amended 1 Sep 2016 (iv) investment earnings on the assets underlying this particular account based on the investment yield Page 48 of 108

49 achieved by the particular portfolio during the period which the said earnings are credited to the Risk Reserve Account; Added 1 Sep 2016 (v) special transfers from the Processing Reserve Account as determined by the BOARD OF TRUSTEES in consultation with the ACTUARY. (b) Debits (i) all risk benefit premiums payable to the INSURERS for the reinsurance of the INSURED RISK BENEFITS specified in these RULES; (ii) transfers to the Member Share Account in terms of RULE 6.2.1(a)(viii) representing the reinsured lump sum death and disability benefits; (iii) transfers to the Pensions Account in terms of RULE 6.2.2(a)(iii) representing the reinsured disability income benefit in terms of RULE ; Page 49 of 108