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

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

Extract from the minutes of a meeting of the Board of Trustees held at Bellville on 8 April 2016 Page 2 of 117

Table of Contents 1 INTRODUCTION 8 1.1 NAME 8 1.2 OBJECT 8 1.3 ESTABLISHMENT OF THE FUND 8 1.4 LEGAL STATUS 9 1.5 REGISTERED OFFICE 9 1.6 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 DEFERRED MEMBER: 12 DEPENDANT: 12 EFFECTIVE DATE: 12 ELIGIBLE CHILD: 12 ELIGIBLE SPOUSE: 13 EMPLOYEE: 13 EXPECTED PENSION: 13 FUND: 14 GROWTH PORTFOLIO: 14 INSURER: 14 INCOME CONTINUATION BENEFITS: 14 INSURED RISK BENEFIT: 14 INVESTMENT CONSULTANT: 15 INVESTMENT MANAGER: 15 MEMBER: 15 MEMBER s SHARE: 15 MODERATE PORTFOLIO: 15 MUNICIPAL ELECTIONS 16 MUNICIPAL MANAGER: 16 NEW EMPLOYEE: 16 NORMAL RETIREMENT AGE: 16 NORMAL RETIREMENT DATE: 16 PARTICIPATING EMPLOYER: 17 PENSION: 17 PENSION FUND: 17 PENSIONABLE REMUNERATION: 17 PENSIONER: 18 PRESERVATION PENSION ACCOUNT: 18 Page 3 of 117

PREVIOUS SCHEME: 18 PRINCIPAL OFFICER: 18 PROTECTION PORTFOLIO: 18 RECOGNISED MATRIMONIAL UNION: 19 REGISTRAR: 19 RULES: 19 SERVICE: 19 SHARIAH PORTFOLIO: 19 TRANSFER VALUE: 20 TRUSTEES: 20 2. MANAGEMENT OF THE FUND 20 2.1. INTRODUCTION 20 2.2 ELECTION AND APPOINTMENT OF TRUSTEES 20 2.2.1 BOARD OF TRUSTEES MEETINGS 23 2.2.2 OFFICE OF A TRUSTEE 25 2.3 DUTIES OF THE BOARD OF TRUSTEES 27 2.4 POWERS OF THE BOARD OF TRUSTEES 29 2.4.1 LEGAL ACTIONS 29 2.4.2 PERSONAL LIABILITY 29 2.4.3 FIDELITY INSURANCE 30 2.4.4 INDEMNIFICATION 30 2.4.5 COMMITTEES 30 2.4.6 APPOINTMENT OF OTHER PERSONS 31 2.4.7 TRUSTEE COMPENSATION 33 2.5 AMENDMENT TO THE RULES 33 3. PRINCIPAL OFFICER 34 3.1 APPOINTMENT OF PRINCIPAL OFFICER 34 3.2 DUTIES OF THE PRINCIPAL OFFICER 34 3.3 APPOINTMENT OF DEPUTY PRINCIPAL OFFICER: 35 4. GENERAL MEETINGS 35 4.1 ANNUAL GENERAL MEETING 35 4.2 SPECIAL GENERAL MEETING 40 4.3 ELECTION OF MEMBER DELEGATES 41 5 MEMBERSHIP 43 5.1 ELIGIBILITY AND ADMISSION 43 5.2 SPECIAL PROVISIONS IN RESPECT OF NEW 45 EMPLOYEES 45 5.2A SPECIAL PROVISIONS IN RESPECT OF COUNCILLORS 45 5.3 TERMINATION 46 5.4 TERMINATION OF MEMBERSHIP OF A MUNICIPAL MANAGER 46 5.5 TERMINATION OF MEMBERSHIP OF A COUNCILLOR 47 6. FINANCIAL STRUCTURE OF THE FUND 48 6.1 FUND ACCOUNTS 48 6.2 COMPOSITION OF ACCOUNTS 48 6.2.1 Member Share Account 48 6.2.2 Pensions Account 51 6.2.3 Reserve Accounts 53 6.2.3(A) Processing Reserve Account 53 Page 4 of 117

6.2.3(B) Expense Reserve Account 55 6.2.4 Risk Reserve Account 56 6.2.5 Data Reserve Account 58 7. CONTRIBUTIONS 60 7.1 MEMBER CONTRIBUTIONS 60 7.2 PARTICIPATING EMPLOYER CONTRIBUTIONS 61 7.3 ADDITIONAL VOLUNTARY CONTRIBUTIONS 63 7.4 PAYMENT OF CONTRIBUTIONS 63 7.5 TEMPORARY ABSENCE 65 8 RETIREMENT 65 8.1 NORMAL RETIREMENT 65 8.2 EARLY RETIREMENT 66 8.3 COMPULSORY EARLY RETIREMENT 66 8.4 LATE RETIREMENT 67 8.5 COMMUTATION AND PENSION OPTIONS 68 9. DEATH 69 9.1 DEATH PRIOR TO RETIREMENT 69 CATEGORY A 69 CATEGORY B 70 CATEGORY C 70 CATEGORY D 70 CATEGORY E 71 CATEGORY F 71 CATEGORY G 71 9.2 DEATH AFTER RETIREMENT 71 9.3 FUNERAL BENEFITS 73 10. DISABILITY BENEFITS 74 10.1 LUMPSUM DISABILITY BENEFITS 74 CATEGORY A 74 CATEGORY B 75 CATEGORY C 75 CATEGORY D 75 CATEGORY E 75 CATEGORY F 76 CATEGORY G 76 10.2 INCOME DISABILITY BENEFIT 76 10.2.1 INCOME DISABILITY BENEFITS UP TO 30 JUNE 2002 76 10.2.2 INCOME DISABILITY BENEFITS WITH EFFECT FROM 1 OCTOBER 2009 79 10.3 NON INSURED RISK BENEFITS 81 10.4 DREAD DISEASE BENEFIT 81 11. WITHDRAWAL 82 11.1 WITHDRAWAL BENEFIT 82 11.2 REDUNDANCY OR RETRENCHMENT 82 11.3 PRESERVATION BENEFIT 83 12. TRANSFERS FROM OR TO OTHER FUNDS 84 13. DEFERRED MEMBERS 87 Page 5 of 117

14. MISCELLANEOUS PROVISIONS REGARDING BENEFITS 89 14.1 PAYMENT OF BENEFITS 89 14.2 PAYMENT OTHER THAN SPECIFIED 90 14.3 PARTICIPATING EMPLOYER S NOTIFICATION OF REASONS FOR TERMINATION OF SERVICE 90 14.4 BENEFIT INSURANCE 91 14.5 CESSATION OF INSURED RISK BENEFITS 91 14.6 CONVERSION OPTION: RISK BENEFITS 91 14.7 BENEFITS NON-ASSIGNABLE 91 14.8 DEDUCTIONS FROM BENEFITS 92 14.9 INTEREST ON LATE PAYMENT OF BENEFITS 93 14.10 UNCLAIMED BENEFITS 94 14.11 PAYMENT OF PENSIONS 95 14.12 PENSION INCREASES 96 15. HOUSING LOANS 97 16. FINANCIAL MATTERS 97 16.1 EXPENSES 98 17. ACTUARIAL VALUATIONS 98 18. INVESTMENTS 99 18.1 BANK ACCOUNT 99 18.2 INVESTMENT PROCEDURES 99 18.3 GROWTH PORTFOLIO 100 18.4 PROTECTION PORTFOLIO 101 18.5 MODERATE PORTFOLIO 102 18.6 SHARIAH PORTFOLIO 103 19. GENERAL PROVISIONS 104 19.1 MONIES NOT TO REVERT TO PARTICIPATING EMPLOYER 104 19.2 COPIES OF DOCUMENTS 104 19.3 COMPLAINTS 105 20. PRESERVATION PENSION ACCOUNT 105 20.1 TRANSFERS INTO THE PRESERVATION PENSION ACCOUNT 105 20.2 FINANCIAL STRUCTURE OF THE PRESERVATION PENSION ACCOUNT 105 20.3 RETIREMENT 107 20.3.1 NORMAL RETIREMENT 107 20.3.2 EARLY RETIREMENT 107 20.3.3 COMPULSORY EARLY RETIREMENT 108 20.3.4 LATE RETIREMENT 109 20.3.5 COMMUTATION AND PENSION OPTIONS 109 20.4 DEATH 111 20.5 DISABILITY 111 20.6 WITHDRAWAL 112 20.7 RETRENCHMENT 112 20.8 TRANSFERS OUT 113 20.9 HOUSING LOANS 113 20.10 PROTECTION PORTFOLIO 113 20.11 MODERATE PORTFOLIO 114 20.12 UNCLAIMED BENEFITS 114 Page 6 of 117

20.13 COSTS 114 20.14 DEFERRED MEMBERS 115 21. DISSOLUTION OF FUND 115 Page 7 of 117

1 INTRODUCTION These RULES are the RULES of the FUND, which are effective from the EFFECTIVE DATE of 1 August 2016. 1.1 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 1996. Members of the Cape Joint Pension Fund were given the option to transfer to the Cape Joint Retirement Fund as at 1 May 1996. 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 117

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 117

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 117

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 117

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; (c) (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; Page 12 of 117

(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; 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 Page 13 of 117

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; INSURED RISK BENEFIT: the risk benefits (death, disability and funeral benefits) reinsured by the FUND in terms of a policy of insurance; Page 14 of 117

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; 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; Page 15 of 117

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. This definition will include all employees employed by any PARTICIPATING EMPLOYER and who elected to join the FUND since 1 January 2007. 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; Page 16 of 117

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; 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. Page 17 of 117

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; 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; Page 18 of 117

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; 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; Page 19 of 117

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; 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. 2.2 ELECTION AND APPOINTMENT OF TRUSTEES (1) The FUND shall be managed in terms of these RULES by a BOARD OF TRUSTEES consisting of twelve (12) members Page 20 of 117

elected as hereinafter provided from duly appointed or elected delegates by secret ballot at the annual general meeting of the FUND, of which- (a) eight (8) TRUSTEES shall be MEMBERS elected by and from delegates elected in terms of RULES 4.1(3) or 4.1(4), and (b) four (4) TRUSTEES shall be COUNCILLORS elected by and from delegates appointed by PARTICIPATING EMPLOYERS in terms of RULES 4.1(3) or 4.1(4). (c) These twelve (12) TRUSTEES shall be elected on a geographic basis as follows: (i) four (4) MEMBERS TRUSTEES contemplated by sub rule (1)(a) and two (2) COUNCILLOR TRUSTEES contemplated by sub rule (1)(b) from the Western Cape; (ii) two (2) MEMBER TRUSTEES contemplated by sub rule (1)(a) and one (1) COUNCILLOR TRUSTEE contemplated by sub rule (1)(b) from the Eastern Cape; (iii) two (2) MEMBER TRUSTEES contemplated by sub rule (1)(a) and one (1) COUNCILLOR TRUSTEE contemplated by sub rule (1)(b) from the Northern Region. Provided that where a COUNCILLOR is also a MEMBER of the FUND and is nominated to fill the position of a TRUSTEE, such COUNCILLOR shall only be elected either by MEMBERS as a MEMBER TRUSTEE or by COUNCILLORS as a COUNCILLOR TRUSTEE depending on his delegation and he may not be elected by both constituencies. Page 21 of 117

(2) Any delegate who is nominated for election as a TRUSTEE at a general meeting of the FUND must indicate to the chairperson of the meeting the acceptance of such nomination. If he is not present at such meeting his written acceptance of such nomination must be in the possession of the chairperson of the meeting. (3) (a) Every delegate and TRUSTEE present shall be entitled to one (1) vote for each vacancy in respect of the constituency that they represent. (b) Voting in respect of the election of any person to the office of a TRUSTEE shall be by ballot. (c) The PRINCIPAL OFFICER shall act as presiding officer and shall appoint persons to collect, scrutinise and count the ballot papers and to report the result thereof to the chairperson of the meeting. (d) The chairperson of the meeting shall announce the results of the trustee election before the conclusion of the general meeting. (4) TRUSTEES will serve for a period of five (5) years from the annual general meeting when they were last elected as a TRUSTEE. (5) The term of a TRUSTEE shall commence at the first (1 st ) meeting of the BOARD OF TRUSTEES held immediately after the annual general meeting at which such TRUSTEES were elected in terms of these RULES and shall cease at the conclusion of the annual general meeting held in the fifth (5 th ) year of such TRUSTEE'S term. (6) A retiring TRUSTEE may be eligible for re-election. Page 22 of 117

(7) The BOARD OF TRUSTEES may appoint suitably qualified persons as additional TRUSTEES, the number of which may not exceed one-third (1/3 rd ) of the TRUSTEES elected in terms of sub rules 1(a) and (b). The terms and conditions of the appointed TRUSTEES shall be the same as for the elected TRUSTEES unless determined otherwise by the BOARD OF TRUSTEES. (8) A newly appointed TRUSTEE must attain such levels of skills as may be prescribed by the REGISTRAR within the prescribed period and must retain such prescribed levels throughout his term of office as required in terms of the ACT. 2.2.1 BOARD OF TRUSTEES MEETINGS (1) Immediately on conclusion of each annual general meeting, the TRUSTEES shall hold a meeting. Such meeting shall be chaired by the PRINCIPAL OFFICER. 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 the matter shall be determined by the chairperson by lot. The elected chairperson and deputy chairperson including such persons elected at the 2013 annual general meeting shall serve in such capacity for a period of two (2) years until the closure of the annual general meeting in the second (2 nd ) year. (2) The deputy chairperson shall act as chairperson in the event of the chairperson being absent or unwilling to act or incapable of acting. Page 23 of 117

(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. (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. (7) Matters serving before a meeting of the BOARD OF TRUSTEES shall be decided by a majority of votes by the TRUSTEES present at such meeting. (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. Page 24 of 117

2.2.2 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 (b) contemplated by sub rule 2.2(1)(b), ceases to be a COUNCILLOR, unless a COUNCILLOR TRUSTEE loses his position as a COUNCILLOR in the MUNICIPAL ELECTIONS. In such instance, the COUNCILLOR TRUSTEE shall continue to serve as a COUNCILLOR TRUSTEE until the conclusion of the immediate following annual or special general meeting of the FUND, as contemplated in rules 4.1 and 4.2. Provided that COUNCILLOR TRUSTEES who are serving as TRUSTEES at the time of the 2016 MUNICIPAL ELECTIONS and who are not re-elected as COUNCILLORS shall remain in office until the next general meeting of the FUND; (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; Page 25 of 117

(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; (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. (2) If the number of remaining TRUSTEES after the office of a TRUSTEE becomes vacant in terms of the above sub rule (a) is sufficient to constitute a quorum, the BOARD OF TRUSTEES may fill such vacancy; provided that a vacancy in the office of a Page 26 of 117

MEMBER contemplated by sub rule 2.2(1)(a) shall be filled only by a MEMBER and a vacancy in the office of a TRUSTEE referred to in sub rule 2.2(1)(b) shall be filled only by a COUNCILLOR; (b) is insufficient to constitute a quorum, the vacancies shall be filled at either an annual general meeting or a special general meeting called in terms of RULE 4.2. (3) A TRUSTEE who is filling a vacancy by being co-opted in terms of sub rule (2)(a) above shall hold office for the unexpired period of his predecessor's term. (4) A TRUSTEE who is elected by a constituency in terms of sub rule (2)(b) above into a vacant position shall hold office as described in RULE 2.2(5). (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 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 Page 27 of 117

(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; (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 Page 28 of 117

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 2.4.1 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. 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 Page 29 of 117

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. 2.4.3 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. 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. 2.4.5 COMMITTEES Page 30 of 117

(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. (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. 2.4.6 APPOINTMENT OF OTHER PERSONS Page 31 of 117

2.4.6.1 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. 2.4.6.2 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. 2.4.6.3 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, Page 32 of 117

accounts, vouchers and other documents pertaining to the FUND and shall certify the result of each audit in writing. 2.4.6.4 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. 2.4.7 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. (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 Page 33 of 117

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. 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 Page 34 of 117

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 4.1 ANNUAL GENERAL MEETING (1) An annual general meeting of the FUND shall be held each year within twelve (12) months of the end of the previous FUND YEAR on a date decided upon by the BOARD OF TRUSTEES. (2) A notice stating the date, time and place of the annual general meeting shall be sent by the PRINCIPAL OFFICER to each PARTICIPATING EMPLOYER not less than seventeen (17) weeks before the date of the annual general meeting. Such notice shall be sent electronically to the PARTICIPATING EMPLOYERS. (3) Every municipality which employs:- Page 35 of 117

(a) one hundred (100) or less MEMBERS may appoint one (1) delegate who shall be a COUNCILLOR delegate and the MEMBERS of such municipality may elect one (1) delegate who shall be a MEMBER delegate; or (b) one hundred and one (101) or more but not more than two hundred and fifty (250) MEMBERS may appoint two (2) delegates who shall be COUNCILLOR delegates and the MEMBERS of such municipality may elect two (2) delegates who shall be MEMBER delegates, or (c) two hundred and fifty one (251) or more but not more than one thousand (1000) MEMBERS may appoint three (3) delegates who shall be COUNCILLOR delegates and the MEMBERS of such municipality may elect three (3) delegates who shall be MEMBER delegates; or (d) one thousand and one (1001) or more but not more than two thousand (2000) MEMBERS may appoint four (4) delegates who shall be COUNCILLOR delegates and the MEMBERS of such municipality may elect four (4) delegates who shall be MEMBER delegates; or (e) two thousand and one (2001) or more MEMBERS may appoint ten (10) delegates who shall be COUNCILLOR delegates and the members of such municipality may elect ten (10) delegates who shall be MEMBER delegates. (4) In respect of each delegate appointed or elected in terms of sub rule (3) the municipality and MEMBERS may appoint or elect, as the case may be, one (1) alternate to attend the annual general meeting in the absence of such delegate, and Page 36 of 117

any alternate so appointed or elected shall, while attending the annual general meeting in the absence of the delegate so appointed or elected, be deemed to be the delegate so appointed or elected. (5) Every delegate and alternate elected by the MEMBERS in terms of sub rules (3) and (4) shall be elected in accordance with the provisions of RULE 4.3. A COUNCILLOR who is a MEMBER of the FUND may represent either the MEMBERS or the COUNCILLORS, but may not represent both constituencies at the meeting. Such delegate shall have one (1) vote at the meeting for the constituency which the delegate represents at the time. (6) The municipality shall notify the PRINCIPAL OFFICER of the names and addresses of the appointed and elected delegates and alternates not later than six (6) weeks after the date that the FUND has distributed the notice provided for in sub rule (2). Where the abovementioned names and addresses of the appointed and elected delegates are notified to the FUND later than six (6) weeks referred to above, the agenda documents will be handed to them at the annual general meeting. (7) (a) Thirty (30) delegates shall constitute a quorum at the annual general meeting. (b) Should a quorum not be present within thirty (30) minutes after the time stipulated for the commencement of the meeting, the meeting shall continue and the delegates then present shall form a quorum. (8) The chairperson of the BOARD OF TRUSTEES shall act as chairperson at the annual general meeting and, in the event of Page 37 of 117

his being absent or unwilling to act or incapable of acting, the deputy chairperson of the BOARD OF TRUSTEES shall so act. Should both the chairperson and the deputy chairperson be absent from or be unwilling to act or be incapable of acting as chairperson at the annual general meeting, the remaining TRUSTEES shall elect one (1) of their members so present to act as chairperson. (9) At least thirteen (13) weeks written notice of any motion for the annual general meeting shall be given to the PRINCIPAL OFFICER; provided that - (a) the BOARD OF TRUSTEES may direct that any proposal which in their opinion, is in conflict with the provisions of either the RULES or the ACT or is of a purely administrative nature shall not be introduced and discussed or voted on at the annual general meeting; (b) the chairperson of the annual general meeting shall permit the introduction and discussion of and voting on any proposal which the BOARD OF TRUSTEES have submitted to the annual general meeting for consideration. (c) the annual general meeting may decide that any motion that has not been submitted timeously may be discussed as a motion of exigency. (10) Proposals for discussion at the annual general meeting may be introduced only by - (a) the BOARD OF TRUSTEES; (b) a COUNCILLOR delegate of a municipality if the proposal concerned has been duly approved at a Page 38 of 117

meeting of the municipality represented by the delegate; or (c) a delegate of MEMBERS if the proposal concerned has been duly approved at a meeting of MEMBERS held in terms of the provisions of RULE 4.3; or (d) the PRINCIPAL OFFICER in a situation referred to in RULE 2.2.2(2)(b). (11) The PRINCIPAL OFFICER shall not less than four (4) weeks prior to the date of the annual general meeting send a notice stating the date, time and place of the annual general meeting together with a copy of the agenda, annual report, motions and financial statements to every delegate elected by MEMBERS or appointed by a municipality; provided that if no delegate is elected or appointed as aforesaid the PRINCIPAL OFFICER shall send a copy of the agenda, annual report and financial statements to the PARTICIPATING EMPLOYER for its information and the information of MEMBERS. (12) Every delegate and TRUSTEE present at the annual general meeting shall be entitled to one (1) vote except for an election of TRUSTEES as set out in RULE 2.2(3). (13) The chairperson of such meeting shall have a casting as well as a deliberative vote, except as provided for in sub rule (14). (14) Voting shall be by show of hands, unless at least five (5) delegates, by rising from their seats, request a vote by ballot. In the event of an equality of votes when voting by ballot the matter shall be determined by the chairperson by lot. (15) In the case of voting by ballot the PRINCIPAL OFFICER shall act as electoral officer and shall appoint persons to collect, Page 39 of 117

scrutinise and count the ballot papers and to report the result thereof to the chairperson of the meeting. The chairperson shall announce the result of the ballot to the meeting. (16) In so far as a resolution of the annual general meeting is not in conflict with the provisions of any law or these RULES, it shall be binding on the BOARD OF TRUSTEES, PARTICIPATING EMPLOYERS and MEMBERS of the FUND. (17) TRUSTEES, who are not elected as delegates, may attend the annual general meeting and vote on any matter. 4.2 SPECIAL GENERAL MEETING (1) A special general meeting shall be convened by the PRINCIPAL OFFICER not earlier than twenty-one (21) and not later than sixty (60) days after being so directed by the BOARD OF TRUSTEES or in the circumstances provided for in terms of RULE 2.2.2(2)(b). (2) At least half (½) of the delegates present at the immediately preceding annual general meeting may, by petition directed to the PRINCIPAL OFFICER, request that a special general meeting be convened and the PRINCIPAL OFFICER shall convene such meeting at a date not earlier than twenty-one (21) and not later than sixty (60) days after such petition has been received. (3) At a meeting thus convened only such matters as are directed by the BOARD OF TRUSTEES in terms of sub rule (1) or referred to in the petition contemplated by sub rule (2), shall be dealt with. (4) All persons delegated to attend the preceding annual general meeting will be the delegates at the special general meeting. Page 40 of 117

(5) The provisions of RULES 4.1(7), 4.1(8), 4.1(12), 4.1(13), 4.1(14), 4.1(15), 4.1(16) and 4.1(17) shall apply mutatis mutandis to a special general meeting. 4.3 ELECTION OF MEMBER DELEGATES (1) A municipality shall convene a meeting of MEMBERS in the SERVICE of such municipality not later than eleven (11) weeks after the date on which the FUND has distributed the notice provided for in RULE 4.1(2). (2) Notice of the date, time and place of the meeting shall be given at least two (2) weeks before the date thereof to each MEMBER; provided that non-receipt of such notice by any MEMBER shall not invalidate the proceedings at such meeting. (3) The MEMBERS present at such meeting shall form a quorum. (4) The meeting shall elect a member from those present to act as chairperson. Minutes of the proceedings of such meeting shall be kept by the chairperson or any person appointed for that purpose. (5) The chairperson shall at such meeting invite nominations for the required number of MEMBER delegates and alternates. (6) If the number of nominations received does not exceed the number of delegates or alternates which may be elected, the candidates so nominated shall be declared by the chairperson to have been duly elected. (7) If the number of nominations received exceeds either the number of the delegates or the number of alternates or both the number of delegates and the number of alternates which Page 41 of 117

may be elected, as the case may be, the required number of delegates and alternates shall be elected by secret ballot. (8) A MEMBER shall not vote for more candidates than the number of delegates and alternates which may be elected in the MEMBER s constituency. (9) The chairperson of the meeting may appoint persons as scrutineers to count the votes immediately after the ballot. (10) If the validity of a ballot paper is in question or if there is a dispute between the scrutineers relating to the ballot, the matter shall be determined by the chairperson whose decision shall be final and binding. In the event of the chairperson having a direct or indirect interest in any such matter, he shall recuse himself and the meeting shall elect a person among those present to act as chairperson for the purposes of this RULE and until such matter is determined as hereinbefore provided by the chairperson so elected. (11) After the votes have been counted the chairperson and the scrutineers shall draw up a report indicating the result of the ballot. (12) The chairperson and scrutineers shall sign the report and the candidate or candidates who obtained the highest number of votes shall be declared by the chairperson to be duly elected. (13) The municipality shall submit to the PRINCIPAL OFFICER such report and a list of the names of every delegate and alternate elected in the timeframes prescribed in RULE 4.1(6). (14) The FUND must regard such report as an accurate reflection of the election. Page 42 of 117

(15) MEMBERS may approve a motion at this meeting which will be submitted to the PRINCIPAL OFFICER for discussion at the annual general meeting, subject to the provisions of RULES 4.1(9) and (10). 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. Page 43 of 117

(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. (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. Page 44 of 117

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. (b) 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. Page 45 of 117