| 16.1 | Subject to the provisions of section 27 of the Law— |
| (a) | no contributions in respect of a dormant member shall be payable to the Fund for the period during which he or she is a dormant member; |
| (b) | no benefit shall be payable to a dormant member before the effective date; |
| (c) | a dormant member shall, with effect from the effective date, be entitled to an annuity and a gratuity which shall be calculated in accordance with the formula; |
| (d) | the spouse or beneficiaries or estate of a dormant member who has died before the effective date shall, with effect from the date of his or her death, be entitled to an annuity and a gratuity which shall be calculated in accordance with the formula defined in rule 16.3(c); and |
| (e) | the provisions of rules 12.1.3 apply mutatis mutandis to a dormant member referred to in this rule. |
| 16.2 | If a dormant member becomes or again becomes a contributing member of the Fund he or she shall, with effect from the date on which he or she so becomes or again becomes a contributing member, cease to be a dormant member and his or her pensionable service shall be deemed not to have been interrupted by the period during which he or she was a dormant member and the aggregate of all the periods of his or her pensionable service shall be taken into account for the purposes of this rules. |
| 16.3 | For the purposes of this rule— |
| (a) | "contributing member" means any member contributing to the Fund; |
| (b) | "effective date" means— |
| (i) | the date on which a dormant member (excluding a member referred to in subparagraph (ii)) attains the age at which he or she, immediately before the date on which his or her membership was terminated as contemplated in section 27 of the Law, would have had the right to retire on pension; or |
| (ii) | the date determined by the Board in the case of a dormant member who has not yet attained the age referred to in subparagraph (i) and whose circumstances are in the opinion of the Board of such a nature that he or she would have retired or would have been retired or discharged on pension on the grounds of continued ill-health which has not been occasioned by his or her own default or any other prescribed reason had he or she been a contributing member of the Fund; |
| (c) | "the formula", means the gratuity or annuity referred to in rule 16.1(c) or (d), increased during the period of the member's dormant membership— |
| (aa) | in respect of a member who became dormant on or before the commencement date at a rate of 10% per year compounded for each year of dormant membership; |
| (bb) | in respect of a member who became dormant on or after the commencement date at a rate as decided by the Board from time to time in terms of section 25 of the Law. |
A x 1,10 n
For the purpose of the formula, an annuity and a gratuity shall be defined as follows—
| (i) | in the case of an annuity or a gratuity referred to in rule 16.1(c) the annual amount of the annuity or the amount of gratuity, as the case may be, to which the dormant member concerned would have been entitled in terms of the pension law concerned if he or she had on the effective date been a contributing member of the pension fund of which he or she was a dormant member; |
| (ii) | in the case of the annuity or a gratuity referred to in rule 16.1(d) the annual amount of the annuity or the amount of the gratuity, as the case may be, to which such spouse, dependant or estate would have been entitled in terms of the applicable pension law if the dormant member concerned had been a contributing member at the time of his or her death of the pension fund of which he or she was a dormant member; |
[Rule 16.3(c) substituted by Notice No. 499 of 11 April 1997]
| 16.4.1 | A member who leaves the Fund, other than on ill health, retirement, death or an exit as per rule 14.8 and has not opted to transfer his/her savings component to an approved retirement fund but is not eligible for a payment from the savings component in that tax year, due to previously making a savings withdrawal benefit in the same tax year and having a remaining balance in the savings component that is higher than R 2 000 or such amount as may be determined from time to time by legislation, will be a Paid-up member and entitled to a paid-up benefit from the savings component. |
| 16.4.2 | A Paid-up member may elect to receive his or her paid-up benefit from the first day of the subsequent tax year after the date of exit. |
| 16.4.3 | Payment of the paid-up benefit will only occur on application for such payment being made by the Paid-up member. |
| 16.4.4 | No further contributions will be payable to the Fund by the Paid-up member or the employer, from the date that the member becomes a Paid-up member unless such a member rejoins the Fund under a new pensionable service record. |
| 16.4.5 | The paid-up benefit will be based on the savings service and final salary of the member as at the date at which they cease to be an active member, with the benefit increased with interest as determined by the Fund. |
| 16.4.6 | The Fund will have no further obligation to the Paid-up member once the paid-up benefit has been paid to them. |
| 16.4.7 | Subject to the provisions of rule 16.4.9, the change in status from being a member to a paid-up member, is irrevocable. |
| 16.4.8 | Funeral benefits, as provided for in rule 14.9, will cease from the date that the member becomes a Paid-up member. |
| 16.4.9 | If a Paid-up member dies before applying for the paid-up benefit to be paid, then the paid-up benefit will be paid to the Paid-up member’s estate. |
| 16.4.10 | Subject to notifying the Fund in writing, a Paid-up member may at any time after he or she has left the Fund, transfer his/her paid-up benefit to an approved retirement fund. The paid-up benefit, in full, must be transferred, as no partial transfers will be permitted. Thereafter the Fund shall have no further obligation towards the Paid-up member. |
| 16.4.11 | If a Paid-up member re-joins the Fund, provided he has not, prior to such re-entry into the Fund, been paid his/her paid-up benefit, he/she shall continue to have a separate paid-up member record until the member retires from the Fund, or the member requests, in writing, from the Fund, for the paid-up benefit to be transferred to his /her new savings component or retirement component. |
| 16.4.12 | For the purposes of this rule, a dormant member is not a Paid-up member. |
[Rule 16(16.4) inserted by section 23 of Notice No. 5191, GG51202, dated 10 September 2024]
| 16.5.1 | A member who leaves the Fund other than ill health, retirement, death or an exit as per rule 14.8, can elect, on exit, to receive the full balances from the vested component and savings component as a cash benefit and to retain the balance of the retirement component as a service credit in the Fund. Such a member will be classified as a deferred pensioner and will be entitled to a deferred annuity from the first day of the month following their fifty-fifth birthday, as determined in accordance with rule 14.2.1 (d), provided, that the annuity will be reduced by one-third of one per cent for each complete month between the actual date that the deferred pensioner requests for payment of the deferred annuity and his/her sixtieth birthday.. |
| 16.5.2 | The deferred pensioner will be entitled to a deferred annuity that will be payable from a future date that falls between his/her fifty-fifth and sixtieth birthdays. |
| 16.5.3 | The deferred annuity will be increased with pension increases granted by the Board from 1 April following the date of leaving the Fund. |
| 16.5.4 | No further contributions will be payable to the Fund by the deferred pensioner or the employer, from the date that the member becomes a deferred pensioner. Where a member rejoins the Fund under a new pensionable service record, such a new membership is administered as a separate membership and the records have no bearing on each other. |
| 16.5.5 | Subject to the provisions of rule 16.5.8, an election to become a deferred pensioner or the transfer to deferred pensioner status due to retaining benefits with the Fund, is irrevocable. |
| 16.5.6 | If a deferred pensioner dies after leaving the Fund but prior to the deferred annuity benefits becoming payable, then the capitalised value of the deferred annuity benefits will be paid to the deferred pensioner’s estate. |
| 16.5.7 | If a deferred pensioner dies after the commencement of receipt of the deferred annuity benefits, then their benefits will be paid according to rule 14.6. |
| 16.5.8 | Subject to notifying the Fund in writing, a deferred pensioner may at any time after he or she has exited the Fund but before the commencement of receipt of a deferred annuity benefit, elect to transfer the lumpsum equivalent of his or her deferred annuity benefit, as determined by the actuary, to an approved retirement fund. |
| 16.5.9 | The full value of the deferred annuity must be transferred and the Fund shall after such a transfer have no further obligation towards the deferred pensioner. |
| 16.5.10 | The election to transfer the deferred annuity to an approved retirement fund is irrevocable. |
| 16.5.11 | Funeral benefits, as provided for in rule 14.9, will cease from the date that the member becomes a deferred pensioner and will only be reinstated once the deferred pensioner becomes a pensioner within the Fund. |
| 16.5.12 | For the purposes of this rule, a dormant member is not a deferred pensioner. |
[Rule 16(16.5) inserted by section 24 of Notice No. 5191, GG51202, dated 10 September 2024]
