DUTCH REFORMED CHURCH IN NAMIBIA RETIREMENT FUND RULES

Transcription

1 DUTCH REFORMED CHURCH IN NAMIBIA RETIREMENT FUND RULES Inhoud 1. GENERAL DEFINITIONS MEMBERSHIP CONTRIBUTIONS AND ACCOUNTING STRUCTURE RETIREMENT BENEFITS DEATH AND DISABILITY BENEFITS PAYMENT OF PENSION TERMINATION OF SERVICE ABSENCE TRANSFERS TERMINATION OF THE FUND DEDUCTIONS FROM BENEFITS MANAGEMENT OF THE FUND FINANCIAL PROVISIONS ADMINISTRATION OF THE FUND ALTERATIONS INTERPRETATION OF RULES AND DISPUTES MISCELLANEOUS PROVISIONS APPENDIX 1: SPECIAL PROVISIONS APPLICABLE TO PENSIONS PAID FROM THE FUND APPENDIX 2: SPECIAL PROVISIONS APPLICABLE TO PENSIONS PURCHASED FROM A REGISTERED INSURER PRIOR TO 1 SEPTEMBER

2 1. GENERAL 1.1 The fund known as the NG Church in Namibia Pension Fund was established with Effect from 1 November With effect from 1 April 1993, the name of the Fund changed to NG Church in Namibia Retirement Fund. With effect from 1 January 1994 the Fund became known as the Dutch Reformed Church in Namibia Retirement Fund. 1.2 The registered office of the Fund is at the Dutch Reformed Church Office of Synod, 46A Schanzen Road, Windhoek, Namibia. 1.3 The object of the fund is, in terms of these Rules, to provide retirement and other benefits for employees and former employees of the Employers, and benefits in the event of their death. 1.4 The Fund, in its own name, shall be capable in law of suing and of being sued and of acquiring, holding and alienating property, movable and immovable. 1.5 With affect from 1 April 1993 the fund converted from a defined benefit arrangement to a defined contribution arrangement. 1.6 These Rules include all amendments up to and including 1 September If the registration of these Rules in terms of the Act is affected later than 1 September 2004, the Rules shall nevertheless take effect from 1 September DEFINITIONS In these Rules words defined in the Act and not in the Rules shall have the meanings assigned to them in the Act and, unless inconsistent with the context, all words and expressions signifying the singular shall include the plural and vice versa, words and expressions implying the masculine gender shall include the feminine, and the following words and expressions shall have the following meanings: Act Actuary Administrators Approved Pension Fund Approved Provident Fund shall mean the Pension Funds Act, 1956, together with amendments up to and including Act 54 of shall mean the Actuary appointed in terms of these Rules. Shall mean the Administrators appointed in terms of these Rules. shall mean a pension fund, other than a Pension Preservation Fund, registered by the Registration Authorities and approved as such by the Revenue Authorities in terms of the Income Tax Act No. 24 of 1981 shall mean a provident Fund, other than a Provident Preservation Fund, registered by the Registration Authorities and approved as such by the Revenue Authorities in terms of the Income Tax Act No: 24 of 1981 Approved Retirement Annuity Fund shall mean a retirement annuity fund registered by the Registration Authorities and approved as such by the Revenue Authorities in terms of the income Tax Act No. 24 of 1981 Auditor shall mean the Auditor appointed in terms of these Rules. 2

3 Calculation Date Category 1 Member Category 2 Member Category 3 Member shall mean the date on which the Administrators, acting in terms of the agreed practice of the Fund, calculate the Member s benefit on the Member s retirement, death or his leaving Service in terms of Rule 8 or in order to transfer the Member s benefit from the Fund in any of the circumstances contemplated in these Rules. shall mean a member of the clergy. shall mean a male member who was a Member of the Fund prior to April shall mean neither a Member who is neither a Category 1 Member nor a Category 2 Member. Conversion Date shall mean 1 April Dependant Eligible Employee Employer shall mean a Dependant as defined in terms of the Act. shall mean an employee who is not an employee whose employment is temporary or casual or subject to a limited period; provided that the Trustees may, at the request of the Employer, waive any of the said qualifications in respect of a particular Eligible Employee or group of Eligible Employees. shall mean the Principal Employer and such associated congregations, religious denominations or related religious organizations participating in the Fund as may be admitted to the Fund from time to time by the Trustees. In relation to any particular employee of Member Employer shall mean the Employer by whom that person is, or was last, employed. Employer s Portion shall mean an amount equal to the sum of: a) That part of the contributions made by the Employer for the Member s retirement benefit in terms of Rule 4.2.1, that is applied towards retirement funding in terms of Rule 4.2.2(d); b) Any contributions made in respect of the Member in terms of the Rules as they applied from the Conversion Date until 1 September 2004 which were applied towards his retirement benefit; c) In the case of a Member who was a Member of the Fund immediately prior to the Conversion Date, his actuarial reserve as determined by the Actuary at the Conversion Date, less his accumulated contributions as defined in the Rules as they applied prior to the Conversion Date; and d) Any amount transferred for the Member s benefit in terms of Rule that is required to be applied under the Employer s Portion; increased or decreased by the investment Return until the Calculation Date. Financial Year shall mean 3

4 a) each twelve-month period ending on 31 March until 31 March 2005; b) the eleven month from 1 April 2005 until 28 February 2006; and thereafter c) each 12 month period ending on the last day of February until 28 February d) the 13 month period from 1 March 2013 until 31 March 2014; and thereafter e) each 12 month period ending on 31 March. Fund Fund Credit shall mean the DUTCH REFORMED CHURCH IN NAMIBIA RETIREMENT FUND. shall mean for each Member at any particular date the sum of: a) His Member s Portion; and b) His Employer s Portion Fund Salary shall mean the Member s basic annual salary of wages, together with such other emoluments and the cash value of such other benefit, or a part thereof, as the Principal Employer may direct; Provided that: a) For the purpose of the Fund, fund Salary shall be determined on the first day of each month of membership of the fund; b) If the amount on which a Member s Fund Salary is based is reduced at any time then, subject to the agreement of the Member, his Employer may direct that, for the purpose of the Fund, the reduction shall not be applied in the calculation of the Member s Fund Salary or shall be applied only partially; and c) While a Member is disabled in terms of the provisions of the insured Disability income Benefit his Fund Salary shall be his Fund Salary at the date on which his disablement commenced. Subject to the provisions of Rule , if the benefit payable to the Member under the Insured Disability income Benefit is increased, his Fund Salary shall be increased in the same proportion. Insured Death Benefit Insured Disability Income Benefit shall mean in relation to each Member during any particular Financial Year, the amount of death cover as can be provided from a Registered Insurer by the contributions paid by the Employer in terms of Rule 4.2.2(a). Such cover shall be a multiple of the Member s Pensionable Emoluments determined annually by the Registered Insurer and notified to Members each year. shall mean in relation to each Member during any particular Financial Year, the amount of disability income cover as can be provided from time to time from a Registered Insurer by the contributions paid by the Employer in terms of 4.2.2(b). Such cover shall be determined by the Registered Insurer in accordance with the terms and conditions of 4

5 the policy that reassures such benefit and notified to the Members each year. Investment Return Normal Retirement Date Pension Pension Preservation Fund Principal Employer Principal Officer Provident Preservation Fund Registered Insurer Registration Authorities Revenue Authorities Rules Service Trustees 3. MEMBERSHIP shall mean an amount as determined by the Actuary from time to time in accordance with Rule shall mean the age of 60 years; provided that in the case of a Category 1 Member and a Category 2 Member who elects to remain in Service his Normal Retirement Date shall be the age of 65 years. shall mean the annuity or, subject to the requirements of the Revenue Authorities, annuities purchased from a registered insurer in terms of Rule 7. shall mean a pension preservation fund registered by the Registration Authorities and approved as such by the Revenue Authorities in terms of the Income Tax Act No. 24 of 1981 shall mean the Synod of the DR Church in Namibia. shall mean the Principal Officer of the Fund appointed in accordance with these Rules. shall mean a provident preservation fund registered by the Registration Authorities and approved as such by the Revenue Authorities in terms of the Income Tax Act No. 24 of 1981 shall mean an insurer registered in terms of the Long-term insurance Act, Act 58 of shall mean the Namibia Financial Institutions Supervisory Authority and / or any other statutory authority from whom the Fund has to apply for registration. shall mean the Namibian Revenue Service and any other statutory revenue authority whose approval of the Fund has been obtained. shall mean these Rules and such alterations as may at any time is applicable. shall mean employment with any of the Employers and shall include any period during which the Member is deemed to remain in Service in terms of Rule 6.2.2(a). shall mean the Trustees or their alternates appointed or elected in terms of these Rules. 3.1 Each person who was a Member of the Fund immediately prior to 1 September 2004 shall remain a Member of the Fund. 3.2 Each employee who is not referred to in Rule 3.1 must become a Member of the Fund as a condition of employment on the day on which he becomes an Eligible Employee. 3.3 A Member shall not be permitted to withdraw from membership while he remains in Service. 5

6 3.4 Each Member must produce evidence of age acceptable to the Trustees and must also give such other information as the Trustees may reasonably require for the purposes of the Fund. 3.5 A Member who has left Service for any reason and has received all the benefits which may be due to him in terms of these Rules shall cease to be a Member. 3.6 If a Member transfers to an Approved Pension Fund or Approved Provident Fund in any of the circumstances envisaged in these Rules and such transfer is subject to the provisions of Section 14 of the Act, then it is specifically provided that with effect from the data on which he becomes a member of such fund, contributions in terms of Rule 4 shall cease and in the event of his death or disablement, prior to transfer of his benefit in terms of these Rules from the Fund to such other fund the Insured Death Benefit and the insured Disability Income Benefit shall not be payable. 3.7 It is specifically provided that, Members who transfer from the Predikante en Weduweepensioenfonds van die NG Kerk in SA, the pensioenfonds NG Kerk Transvaal and the Pensioenfonds NG Kerk OVS shall become Members of the Fund on the first day of the month coincident with or next following the date on which they qualify as Eligible Employees. 4. CONTRIBUTIONS AND ACCOUNTING STRUCTURE 4.1 Contributions by the Member Each Member shall contribute monthly to the Fund throughout his Service at the rate of one twelfth of 7.5 per cent of his fund Salary Each Member s contributions shall be deducted by his Employer from his salary of wages and paid to the Fund Contributions hall be paid to the Fund within seven days after the end of the month in respect of which the contributions were made A Member may make additional contributions to the Fund on an annual or monthly basis in order to secure a greater benefit in respect of period of past service. Such additional contributions shall be of such regular rate and frequency as may be agreed with the Trustees and shall be applied under the Member s Portion. 4.2 CONTRIBUTIONS BY THE EMPLOYER The Employer shall make monthly contributions in respect of each Member equal to one twelfth of 12.5 per cent of the Member s Fund Salary The amount paid in terms of Rule shall be applied as follows: a) not more than 4% of one twelfth of the Member s Fund Salary shall be allocated to meet the cost for the relevant month of the Insured Death Benefit and the insured Disability Benefit: Provided that if the cost of the Insured Death Benefit and the insured Disability Benefit is less than 4% of the Member s Fund Salary, the balance shall be allocated to the Reserve Account; b) 6.5% of one twelfth of the Member s Fund Salary shall be applied towards the Member s retirement benefit; c) the balance of the amount shall be allocated to the Reserve Account to meet the Fund s administrative and incidental costs The Employer may from time to time make additional contributions to the Fund in order to increase the balance in the Reserve Account, in consultation with the Actuary Contributions by the Employer must be paid to the Fund within seven days after the end of the month to which they relate. 6

7 4.3 Accounting Structure of the Fund An account to be known as the Reserve Account shall be maintained under the Fund and shall operate in accordance with this Rule: The Reserve Account shall comprise: a) The amount, as determined by the Actuary, standing to the credit of the Reserve Account as at 1 September 2004; b) Any amount credited in terms of Rule (a) (b) or (c); c) Any Employer s contributions in terms of Rule d) Any reinsurance payments made to the Fund by Registered Insurers; e) Any other income not specifically provided for elsewhere in the Rules The amount standing to the credit of the Reserve Account shall be increased or decreased by the Investment return earned on the assets of the Reserve Account The amount standing to the credit of the Reserve Account shall be used to: a) Increase benefits payable by the Fund; b) Pay lump sum death benefits in terms of Rule (a); c) Pay the Insured Disability Income benefit in terms of Rule 6.2; d) Absorb fluctuations in the market of the Funds investments; e) Meet the Fund s administrative and incidental expenses; f) Meet any other payments by the Fund not specifically provided for elsewhere in the Rules The Reserve Account shall comprise: a) The amount, as determined by the Actuary, standing to the credit of the Reserve Account as at 1 September 2004; b) Any amount credited in terms of Rule (a) or (b) or (c); c) Any Employers contributions in terms of Rule 4.2.3; d) Any reinsurance payments made to the Fund by Registered Insurers; e) Any other income not specifically provided for elsewhere in the Rules; The amount standing to the credit of the Reserve Account shall be increased or decreased by the Investment return earned on the assets of the Reserve Account The amount standing to the credit of the Reserve Account shall be used to: a) Increase benefits payable by the Fund; b) Pay lump sum death benefits in terms of Rule 6.1.1(a); c) Pay the Insured Disability income benefit in terms of Rule 6.2; d) Absorb fluctuations in the market value of the Fund s investments; e) Meet the Fund s administrative and incidental expenses: f) Meet any other payments by the Fund not specifically provided for elsewhere in the Rules. 5. RETIREMENT BENEFITS 5.1 Amount of Pension The Pension payable to a Member on his retirement shall be of such amount as can be secured by his Fund Credit after the exercise of any option in terms of Rule 5.3. The Pension shall be paid in accordance with Rule Retirement 7

8 5.2.1 A Member may retire from Service at any time after having attained the age of 55 years, or if a Member is dismissed from Service after having attained the said age and the Employer regards such dismissal as early retirement A Member who has not retired in terms of Rule must retire on reaching his Normal Retirement Date unless, subject to the provisions of Rule this Employer agrees to his remaining in Service after that date The Trustees, upon receipt of notification from the Employer that a Member who does not qualify for a benefit in terms of the provisions of the Insured Disability Income Benefit has become totally and permanently incapable of efficiently carrying out his duties, shall agree to suck Member s retirement at any time before he reaches Normal Retirement Date Subject to the consent of the Employer, a Member who has reached his Normal Retirement Date may remain in Service and retire at a date not later than the last day of the month in which he attains age 70 years. 5.3 Commutation At the commencement date of his retirement, prior to the purchase of his Pension in terms of Rule 7, a Member may elect to commute for a lump sum: a) If the amount available for the purchase of such Pension does not exceed the limit set by the relevant legislation from time to time, the whole of the available amount ; or b) If the whole of such amount exceeds the limit referred to in (a), not more than one third of such amount. 5.4 Pre-Retirement Investment Option Subject to the provisions of Rule , to giving one month s written notice to the Trustees and to approval by the Trustees, a Member who is within three years of reaching his Normal Retirement Date may elect that his Fund Credit shall be placed in a lower volatility portfolio to be determined by the Trustees from time to time The option shall be available from time to time by the Trustees to each Member who is eligible, but once made, the election shall be irrevocable From the date on which the Member s Fund Credit shall be increased or decreased by the Investment Return earned by the applicable portfolio. 6. DEATH AND DISABILITY BENEFITS 6.1 Death Death in Service prior to Normal Retirement Date The Following lump sum benefits shall be payable on the death of a Member while in Service prior to Normal Retirement Date: a) Subject to the provisions of Rule 6.1.4, the Insured Death Benefit: and b) His fund Credit, Death in Service after Normal Retirement Date 8

9 If a Member who has deferred his retirement in terms of Rule dies while still in Service, there shall be payable a lump sum benefit equal to his Fund Credit Payment of Benefit Payment of the death benefit shall be made in terms of Section 37C of the Act. (The contents of Section 37C of the Act are contained in the Annexure to the Rules) Restrictions 6.2 Disability The Trustees may, after consultation with the Actuary, reinsure with a registered insurer the death benefits described in this Rule 6. The said benefits shall be subject to the conditions imposed by the Registered Insurer concerned and each Member shall only be entitled to the said benefits to the extent that he is accepted by the said Registered Insurer for such benefits Provided that the Trustees may, in their absolute discretion and after consultation with the Actuary, make provision for payment out of the Reserve Account of part of any benefit which has been reduced or for payment of the whole benefit, where the said Registered Insurer has refused to admit a claim in respect of any benefit Any Member in respect of whom the benefits in terms of this Rule 6 are restricted in terms hereof shall be informed of the extent of such restriction by the Trustees within a reasonable time period of the Trustees becoming aware of the restriction No increase in Fund Salary during any period in which the Member is disabled in terms of the provisions of the Insured Disability Income Benefit, if applicable, shall apply for the purposes of that part of the death benefit which is so insured without the prior agreement of the Registered Insurer. If at any time prior to his Normal Retirement Date a Member becomes disabled, as a result of an accident, a disease or an illness, to the extent that he can no longer pursue his own or similar occupation for which he would be qualified by his training and experience, the Insured Disability Income Benefit shall become payable and the provisions of Rules and shall apply The insured Disability Income Benefit shall be payable as a disability income in terms of a separate group disability scheme provided by the Employer and the following shall apply for as long as such disability income remains payable: a) The Member will remain a Member of the Fund, contributions by and on behalf of him will continue to be payable and he will remain entitled to rights and benefits in terms of the Rules; b) The Member will be deemed to have retired in terms of Rule 5.1 upon his attainment of his Normal Retirement Date, provided that the disability income has ceased at that date. If the Insured Disability Income Benefit ceases to be payable prior to the Member s Normal Retirement Date, one of the following shall apply, as the case may be: a) The Member shall remain a Member of the Fund, or b) The Member shall receive a withdrawal benefit in terms of Rule 8; or c) If the Member so qualifies, he shall receive a retirement benefit in terms of Rule 5; or d) Benefits in terms of Rule shall be payable, if applicable. 9

10 6.3 Suspension and Cancellation of Death or Disability Cover Notwithstanding any other provision in this Rule 6, if any part of the death benefit in Rule 6.1 or the disability income benefit in Rule 6.2 is insured with a Registered Insurer and the cover provided in terms of the policy issued by the Registered Insurer is suspended or cancelled for reasons beyond the control of the Trustees then that part of the death benefit in Rule 6.1 or the disability income benefit in Rule 6.2 which was so insured shall not be payable by the Fund. The Trustees must inform the Members in writing of the terms of any suspension of cancellation in terms of this Rule. 7. PAYMENT OF PENSION The Pension payable on a Member s retirement shall be purchased by the Fund in the Member s name from either a Registered Insurer, or an Approved Pension Fund, or an Approved Provident Fund or an Approved Retirement Annuity Fund of the Member s choice, where after the Fund shall have no further liability in respect of such Member. The Pension so purchased shall be a compulsory, non-commutable, non-assignable annuity payable for life. The further terms and conditions applicable to the Pension so purchased, including any options elected by the Member and the determination of any benefits arising on his death, shall be subject to the provisions of the Act and set out in writing by the Registered Insurer or approved fund from whom the Pension is purchased. 8. TERMINATION OF SERVICE 8.1 Benefit If a Member who has not reached Normal Retirement Date leaves Service of his own free will or is dismissed by the Employer for reasons not provided for in Rule 7.2, he shall become entitled to a lump sum benefit equal to his Fund Credit. 8.2 Redundancy or Retrenchment If a member who is not qualified to retire in terms of Rule 5 leaves Service as a result of his having been declared redundant or having been retrenched, then he shall become entitled to his Fund Credit at the date of leaving Service. 8.3 Payment of Benefit The benefit in terms of this Rule shall be paid to the Member as a lump sum. Subject to the provisions of Rule 12, payment shall be made as soon as possible after the date of his leaving Service Instead of receiving the benefit entirely as a lump sum, the Member may transfer all or subject to the provision to this Rule, part of the benefit to another Approved Provident Fund, a Preservation Provident Fund, an Approved Pension Fund, a Pension Preservation Fund or an Approved Retirement Annuity Fund, provided that transfer to a Preservation Provident Fund is subject to the requirements of the Revenue Authorities as specified from time to time. 9. ABSENCE 9.1 When a Member is on leave with full pay or with pay less than full pay, he shall contribute to the Fund in accordance with Rule and the Employer shall continue to contribute in respect of him in accordance with Rule 4.2 and all benefits under the fund in respect of him shall be maintained. 10

11 9.2 If a Member is on leave without pay, no contributions shall be made by him in terms of Rule and the contributions made by the Employer in respect of him shall be limited to those required to maintain the Insured Death Benefit and the Insured Disability Income Benefit which benefits shall continue to be payable for such period as is set out in the policy in terms of which the benefit in that Rule is insured. a) Throughout the period of leave, if the Member s leave is due to sickness; or b) For not longer than twelve months, if the member s leave is due to reasons other than sickness. 10. TRANSFERS 10.1 Transfers into the Fund If a Member transfers from another Approved Pension Fund of Approved Provident Fund operated by the Employer, the amount to be transferred shall be his full benefit entitlement in terms of the rules of such fund. Any amount attributable to his own contributions, increased or decreased by the investment return on such fund, shall be applied under the Member s Portion and the balance shall be applied under the Employer s Portion If a Member who was a member of an Approved Provident Fund, any other Approved pension Fund, a Provident Preservation Fund or a Pension Preservation Fund prior to becoming a Member of the Fund chooses to transfer the benefit to which he is entitled on leaving that fund into the Fund, the amount so transferred shall be applied under the member s Portion Transfers out of the Fund If a Member is transferred to the service of a company or other organization associated or subsidiary to the Principal Employer but not participating in the Fund then; a) if the transferred Member becomes a member of the Approved Pension Fund or an Approved Provident Fund established for the benefit of the employees of the organization to which he is transferred, the Trustees shall pay the Member s Fund Credit at the date of his transfer to that fund and he shall have no further claim on the Fund; or b) If the circumstances provided for in (a) do not exist, the Trustees, in consultation with the Principal Employer and the Actuary, shall decide on the manner of dealing with the Member s Fund Credit If an Employer ceases to participate in the Fund as a result of a decision to participate in or to establish another Approved Pension Fund in or to establish another Approved Pension Fund or an Approved Provided Fund, then the Fund Credit to each Member in the Service of that Employer who is eligible for membership of such fund on a date determined by the Trustees shall be transferred to such Approved Pension Fund or Approved Provident Fund. The Employer shall cease to participate in the Fund on finalization of the transfer. On transfer of his Fund Credit in terms of this Rule, the Fund shall have no further liability in respect of such Member. 11. TERMINATION OF THE FUND 11.1 The Fund shall be dissolved: 11

12 if the Principal Employer is declared insolvent, is wound-up or otherwise ceases to operate; or In terms of an order of court as envisaged in section 29 of the Act; or In such other circumstances as the Registration Authorities, on the written application of the Fund, may approve On dissolution of the Fund in terms of Rule or the Trustees shall retain their powers and be responsible of attending to the dissolution of the Fund until the appointment of liquidator. The Trustees shall, subject to the approval of the Registrar, appoint an independent liquidator who must liquidate the Fund with effect from the date of the Registrar s approval of his appointment. Once the Registrar has approved the liquidator s appointment, the Trustees shall cease to hold office and the powers, functions and responsibilities conferred on them by the Rules shall devolve upon the liquidator In accordance with the liquidator s instructions, the total monies available under The Fund after payment of all expenses incurred in the liquidation shall be applied to provide benefits for all Members on an equitable basis recommended by the Actuary and approved by die liquidator The procedure in terms of Rule 11.3 shall be subject to the following conditions: The amounts apportioned in terms of Rule 11.3 shall be dealt with as follows: The amount available for a Member or former Member shall, as the liquidator in consultation with the Actuary may decide, i) Be transferred for the benefit of the Member or former Member to an Approved Retirement Annuity Fund, Approved Pension Fund or a Pension Preservation Fund; or ii) Be applied to purchase an annuity for the Member or Former Member from a Registered Insurer; or iii) Be paid the Member or former Member in cash If a Member or former Member to whom an amount is payable cannot be traced, the amount referred to in Rule shall be dealt with in accordance with the provisions of the Act In making an apportionment in terms of Rule 11.3 the liquidator shall take into consideration every former Member who, during the twelve month period ending on the date of commencement of the liquidation, left Service. The Former Member s apportionment shall be reduced by the amount of the benefit that he received on leaving Service When all payments have been made by the Fund in terms of Rule 11.4 the Fund shall have no further liability towards any person and it shall be deregistered in terms of the Act If an Employer, other than the Principal Employer, ceases its participation in the Fund, the Fund Credit of each Member in that Employer s Service as at the date of cessation of the Employer s participation shall be dealt with in accordance with the provisions of Rule 11.4 mutatis mutandis. In determining a member s Fund Credit for the purpose of this Rule 11.6 the Trustees after consultation with the Actuary, shall consider the equity between the groups of Members in the Fund and recommend the potion, if any, of the Reserve Account to be transferred or paid in cash with the Member s Fund Credit. 12

13 When all payments have been made by the Fund in terms of Rule 11.6 Participating Employer shall cease to participate in the Fund, the Members shall cease to be Members and the Fund shall have no further liability towards the Participating Employer and the Members in the Service of that Employer. 12. DEDUCTIONS FROM BENEFITS 12.1 The Trustees shall have the right to make such deductions from the benefit to which a Member or other beneficiary is entitled in terms of the Rules as are permitted in terms of Section 37D of the Act and in respect of which a claim has been lodged in writing within such claims. (The contents of Section 37D of the Act are contained in the Annexure to the Rules) 12.2 If a Member is retiring on Pension, the trustees shall have the right to commute for a lump sum an amount of the Pension up to the maximum amount which may be commuted in terms of Rule 5.3 and to make the deduction from such lump sum. 13. MANAGEMENT OF THE FUND 13.1 Trustees Subject to the provisions of the Act and of these Rules, the sole responsibility for the management of the Fund shall be vested in the Trustees The Trustees and their alternates appointed or elected in terms of these Rules shall not be entitled to be remunerated by the Fund for their services as such The Trustees shall have the power in the name of the Fund to enter into and sign any contracts or documents and to institute, conduct, defend, compound or abandon any legal proceedings by or against the Fund and to make bye-laws prescribing the form and the manner n which claims are to be lodged and dealt with by the Fund Employers Trustees The Synodical Commission for Administration for the Dutch Reformed Church in Namibia shall appoint three Trustees (hereinafter referred to as Employers Trustees ) An Employers Trustee may at any time be removed from office by the Principal Employer or may resign at any time on giving written notice to the Principal Employer and the other Trustees Any vacancy on the board of Trustees arising by reason of the operation of Rule or Rule 13.4 shall be filled by an alternate referred to in Rule or by a new Employers Trustee appointed by the Principal Employer Members Trustees The Members shall elect three Trustees (hereinafter referred to as Members Trustees ) and three alternate Trustees from among their number. The following procedure shall apply: a) The candidates so nominated shall be ranked according to the number of votes received: b) The three persons so nominated with the highest number of votes shall be the Members Trustees; 13

14 c) The next three persons so nominated shall be the alternate Trustees and shall be ranked from first to third in accordance with the number of votes received. Any alternate Trustee may replace a Members Trustee who is temporarily unable to act in that capacity but vacancies on the board of Trustees shall be filled by the alternate Trustees in accordance with the provisions of Rule Any vacancy on the board of Trustees arising by reason of the operation of Rule or Rule 13.4 shall be filled by the alternate listed first in the ranking order referred to in Rule On the appointment of such first ranking alternated as a Members Trustee the second ranking alternate shall then rank as the first alternate and the third ranking alternate as the second alternate; provided that in the event that only one alternate Members Trustees remains, two more trustees shall be elected or appointed from among the Members, in accordance with such procedures as may be agreed upon by the Principal Employer and the Members and approved by the Trustees. These alternates shall be ranked in accordance with the number of votes received All elections of Members Trustees shall be by secret ballot and shall be held every three years. Subject to the provisions of Rule and Rule 13.4 a Members Trustee who has served his term of office shall be eligible for re-election A Members Trustee shall cease to hold office a) If the Members resolve that he is to be removed from office; b) If he has failed to attend three consecutive Trustees meetings without leave from the other Members Trustees; or c) If appointed due to his being an employee, he ceases to be in Service. A Members Trustee may also resign at any time on giving written notice to the Members and the other Trustees Disqualification from holding office as Trustee No person in any of the following categories shall be eligible for appointment or election as a Trustee and if a Trustee at any time falls into any such category he shall cease to hold office: a) a minor or any person who is insane or otherwise incapable of acting: b) any person who is disqualified from being a director in terms of an order under the Companies Act, 1973; c) an unrehabilitated insolvent; d) any person removed from an office of trust on account of misconduct; e) any person who has been convicted of theft, fraud, forgery or uttering a forged document, perjury, and offence under the Prevention of Corruption Act, 1958, any offence involving dishonesty or any offence in connection with the promotion, formation or management of a company Meetings of Trustees The Trustees shall meet from time to time but at least once in every twelve months to conduct the business of the Fund. At least half of the total number of Trustees shall 14

15 constitute a quorum; provided that at least 2 of the Trustees present shall be Employer s Trustees Minutes of all meetings must be kept and at least 15 days notice of each ordinary meeting shall be given to each Trustee; provided that at the discretion of the Trustees this notice period may be waived or reduced The Trustees shall elect one of their number as chairperson of the Trustees and shall also elect a vice person to act in place of the chairperson if he is absent. The chairperson s term of office shall be concurrent with the term of office of the Members Trustees in terms of Rule and the existing chairperson shall be eligible for re-election At all meetings of the Trustees the decision of the majority shall be binding and if the votes are equal the matter shall be referred to the next meeting of the Trustees A resolution in writing signed by all the Trustees (for which purpose an alternate may sign in the absence of the Trustee for whom he is an alternate) shall be of the same force and effect as a resolution passed at a meeting of Trustees and must be recorded in the fund s minute book Other Appointments The Trustees shall appoint an Actuary, an Auditor and Administrators and may with draw any such appointment and make another appointment in its place at any time The Trustees shall appoint a Principal Officer in terms of the Act and may withdraw any such appointment and make another appointment in its place at any time. If the principal Officer is absent from the Republic of Namibia or is otherwise unable to perform his duties, the Trustees shall within 30 days appoint another person to act as Principal Officer for the period of his absence or inability The Principal Officer shall not be entitled to any remuneration for his services as such The Trustees may appoint consultants on such terms as they may determine and may withdraw any such appointment at any time Indemnification of Officers of the Fund The Trustees and all other officers of the Fund shall be indemnified by the Fund against all proceedings, costs and expenses incurred by reason of any claim in connection with the Fund not arising from their negligence, dishonesty or fraud The Trustees must ensure that the Fund is insured against any loss resulting from the dishonesty or fraud of any of its officers Sub-Committees The Trustees may decide that any power of decision on any matter that is vested in them over and above a matter referred to in Rule , shall be delegated, on such terms and conditions as they may specify, to a sub-committee, or sub-committees, of such of their number as they nominate. The decision of a subcommittee to which a power is so delegated shall, unless the Trustees stipulate that it must be referred to them to ratification, be regarded as a decision made by the Trustees. 14. FINANCIAL PROVISIONS 14.1 Investment 15

16 All moneys received an amount to the Fund must be paid into a bank account held in the name of the Fund Subject to the provisions of the Act and the requirements of the Registration Authorities, the Trustees shall have full power to receive, administer and apply the moneys of the Fund and in their absolute discretion to invest, put out at interest, place on deposit, make advances, or otherwise deal with the moneys of the Fund upon such security and in such manner as they may determine from time to time, and to realize, vary, reinvest or otherwise deal with such securities and other investments as they determine from time to time The trustees shall have the power to effect policies of insurance with one or more Registered Insurers for the purpose of investing the Fund s moneys to meet the cost of providing benefits in terms of these Rules and may, notwithstanding the provisions of these rules, cede all or part of such a policy to a Member in lieu of a cash entitlement in terms of these Rules. The Trustees shall also have the power to fully or partially insure the death and disability benefits payable in terms of these Rules subject to the requirements of the Registration Authorities, the Trustees may obtain an overdraft from a bank or borrow from an employer or any other party, on such terms as the Trustees see fit and on such security as the Trustees may decide such sums as the Trustees may approve in order to finalize any investment or meet any temporary cash shortage All title deeds and securities must be registered in the name of the Fund or in the name of a nominee company approved by the Registration Authorities. The documents of title pertaining to any investment or asset of the Fund must be held in safe custody of assets held on behalf of the Fund by a nominee company, at the registered office of the nominee company at their sole discretion and subject to the provisions of the Act, the Trustees may invest the Fund s net assets in diverse investment portfolios that have distinct investment philosophies, mandates or conditions. In their sole Each investment portfolio established in accordance with Rule shall at all times comply with the investment prescriptions of the Act The contractual and other conditions stipulated by the financial institution or person managing each investment portfolio shall apply mutatis mutandis to the Fund and its Members The investment earnings in respect of the specific investments underlying each Members Fund Credit and the Reserve Account shall be credited to the relevant Fund Credit or the Reserve Account or, in the case of negative earnings, debited to the relevant Fund Credit or the Reserve Account, Investment earnings shall be based on the net investment yield achieved on the Fund s investment during the period for which they said earnings are credited or debited to the relevant Fund Credit or the Reserve Account, net of any deductions in terms of Rule 14.3 It a proviso that where the Fund has granted a Member a housing loan in terms of Rule 14.2, the investment yield on that portion of the Member s Fund Credit represented by the outstanding balance of such loan from time to time shall be equal to the amount paid to the Fund in interest on such loan by the Member notwithstanding any contrary provision contained in the Rules, no explicit or implicit investment guarantees are given by the Fund. 16

17 whenever the Fund grants a Member a housing loan in terms of Rule 14.2 the amount of loan granted shall be disinvested from the investment portfolios in which the Member has invested and transferred to the housing loan portfolio The power of the Trustees to make investments and to realize, vary, reinvest or otherwise deal with the securities concerned, may be delegated by the Trustees, on such terms and conditions as they may specify, to a) A sub-committee of such of their number as they nominate; b) A financial institutions as defined in the Financial institutions (Investment of Funds Act), 1984; or c) A person approved in terms of section 4(1) (a) of the stock Exchanges Control Act, The Trustees shall not be liable for the negligence, dishonesty or fraud of an institution referred to in (b) or of a person referred to in (c); provided that the Trustees have received written confirmation that such institution or person, as the cased may be, has arranged insurance cover for an amount satisfactory to the Trustees in respect of any liability Fund s investments The Trustees shall have the power to transfer the assets and liabilities of the fund or a portion thereof to another Approved Pension Fund or to an Approved Provident Fund or to take transfer of the assets and liabilities or of a portion thereof from another Approved Pension Fund or from an Approved Provident Fund Housing Loans The Trustees shall have the power to grant a loan to a Member for a purpose referred to in Section 19(5) (a) of the Act. Such loan shall be subject to the provisions set out in Section 19(5) (b), (c) and (ca) of the Act. (Section 19(5) of the Act is contained in the Annexure to these Rules) The Trustees shall also have the power to furnish a guarantee in respect of a loan by some other person to a Member for a purpose referred to in Section 19(5)(a) of the Act and, if so required for such purpose, may make a deposit in pledge with a bank or building society as collateral security. Such guarantee shall be subject to the provisions of the Act and the requirements of the Registration Authorities Expenses Unless specifically provided elsewhere in these Rules, the whole of the expenses in connection with or incidental to the management or administration of the Fund shall be paid by the Fund Accounts The Trustees shall cause full and true accounts of the Fund to be kept, such accounts to be made up as at the end of each Financial Year, to be audited by the Auditor and then to be submitted to the Registration Authorities Actuarial Valuations 17

18 The Financial condition of the Fund shall be investigated and reported on by the Actuary at intervals not exceeding three years. The Trustees shall forward a copy of such report to the Registration Authorities and shall cause a copy of such report or a summary thereof to be sent to every Employer participating in the Fund If the valuation discloses that there is a substantial actuarial surplus or that there is a deficit that requires to be funded, the manner of dealing with the surplus of funding the deficit shall be considered by the Trustees and recommendations made to the Principal Employer for a decision. The Principal Employer s decision shall be made within the limitations imposed by the Act and the Registration Authorities practice and shall be final. Where necessary, the Trustees shall after the Rules to give effect to such decision Late Payment interest on Benefits Late payment interest may be payable on any benefit due to a Member or beneficiary on such Member s retirement, leaving Service in terms of Rule 8 or death, or, subject to the provisions of the Act, on any amount transferred for his benefit to another Approved Pension Fund, Approved Provident Fund or Approved Retirement Annuity Fund or to a Pension Preservation Fund. Any such interest shall be paid in accordance with the practice of the Fund. 15. ADMINISTRATION OF THE FUND 15.1 The Fund shall be administered by Administrators appointed by, and acting on the instructions of, the trustees The Employers shall from time to time furnish to the Trustees in respect of those employees who are Members all necessary particulars affecting their benefits or their entitlement to benefits under the Fund and the Trustees shall ensure that such particulars are furnished to the administrators. The Trustees and the Administrators shall be entitled to act upon such particulars without further enquiry and shall not be responsible to any Member or to the Employer or to any other person or body whatsoever for any mis-statements or errors or omissions which may be contained in such particulars The Administrators shall keep a complete record of all necessary particulars of the Members of the Fund and of all persons entitled to benefits and of all other matters essential to the operation of the Fund The Administrators shall keep full and true accounts of the Fund as required in terms of Rule All cheques, contracts and other documents pertaining to the fund shall be signed by such persons as the Trustees by resolution may appoint, provided that documents to be deposited with the Registration Authorities must be signed in the manner set out in the Act The Administrators shall maintain fidelity cover to indemnify the Fund against any loss resulting from the dishonesty or fraud of any person employed by them. 16. ALTERATIONS 16.1 The Trustees may alter these Rules at any time. 18

19 16.2 No alteration to the Rules which affects the terms on which the Employer s contributions are based or the Fund may be terminated may be made without the approval of the Principal Employer No alteration to the Rules which affects the financial condition of the Fund may be made until it has been referred by the Trustees to the Actuary and the Principal Employer All alterations to the Rules shall be submitted to the Registration Authorities, the Revenue Authorities and any other statutory authority who so requires If the registration of any alteration to these Rules in terms of the Act is affected on a date after the effective date of the alteration, the alteration shall nevertheless take effect from the effective date as stated in the alteration. 17. INTERPRETATION OF RULES AND DISPUTES 17.1 The decision of the Trustees as to the meaning of or interpretation of these Rules or of any particular Rule or part of a Rule shall be final and binding on the Members and every person claiming to be entitled to a benefit under these Rules If any person affected by a decision of the Fund in terms of Rule 17.1 is dissatisfied with the decision, he shall have the right to refer the matter to the Registration Authorities. Notice of intention to exercise such right must be given by the person concerned to the Fund not later than three months from the date of the Fund s decision. 18. MISCELLANEOUS PROVISIONS 18.1 (a) Subject to payment of such fee as the Trustees may require, a Member shall be entitled on application to a copy of any of the documents referred to in Section 35(1) of the Act. (b) A Member shall be entitled on application to inspect without charge a copy of any of the documents referred to in Section 35(2) of the Act and to make extracts there from. (Section 35 of Act is contained in the Annexure to these Rules) (a) Payment of each benefit in terms of these Rules shall be made to the person entitled thereto either: i) At the registered office of the Fund; or ii) By means of electronic transfer into the bank account of the beneficiary to a registered bank; Provided that aa) bb) should a beneficiary request payment by cheque, the fund shall explain to him that he shall carry the risk of a cheque being lost or stolen once in his possession or once posted, where postage by mail is requested; and the beneficiary is required to inform the Fund in writing of the particulars of his bank account or, if applicable, his postal address. 19

20 (b) Payment in terms of (a) shall constitute full and final settlement of all claims to the benefit against the Fund and neither the Fund, the Trustees nor t he Administrators shall have any further liability for the benefit to any person All benefits and rights to benefits in terms of these Rules shall be subject to the prohibitions as to reduction, cession, etc. contained in Section 37A and 37B of the Act. (The contents of these Sections are contained in the Annexure to these Rules) 18.4 If a benefit due under the Fund, other than a benefit payable in terms of Section 37C of the Act, is not claimed within six months after the date on which it became due for payment and after the Trustees have taken all reasonable steps to trace beneficiaries, the following shall apply: a) the benefit, less any tax payable thereon, shall be held in an investment account established by the Administrators, and approved by the Trustees, for the purpose of housing such unclaimed benefits and shall be recorded in a register of unclaimed benefits maintained by the Administrator; b) The benefit shall be increased by interest at the rate determined by the Trustees and debited with expenses payable to the Administrators; c) If a potential beneficiary approaches the Fund at any stage thereafter, the Trustees shall direct them to the Administrators for the payment of the benefit. (The contents of Section 37C of the Act are contained in the Annexure of these Rules) Nothing in these Rules shall in any way restrict the right of the Employer to terminate the employment of any Member or affect any agreement between the Employer and an employee in regard to conditions of Service No person shall have any claim concerning the Fund either upon the Fund or against the Employers, except in accordance with these Rules Admission to membership of the Fund shall be regarded as an acknowledgement by the Member that he agrees that these Rules, including any alteration to these Rules, shall be binding upon him and upon any person claiming to derive a benefit under the Fund by virtue of his membership Subject to the requirements of the Revenue Authorities as specified from time to time and to the payment by the Employer of such additional contribution, or contributions, as the Trustees after consulting the Actuary may decide to be necessary, the Trustees, with the agreement of the Employer, may direct that any benefit payable to or in respect of any Member be increased on such basis as shall be determined in consultation APPENDIX 1: SPECIAL PROVISIONS APPLICABLE TO PENSIONS PAID FROM THE FUND 1. The following definitions shall apply for the purpose of this Appendix: Eligible Child shall mean a child of a Pensioner, including: a) A child of the Pensioner, including an illegitimate or a legally adopted child, under the age of 18 years and unmarried; or 20