| (a) |
Each employee, subject to the exclusions in clause 1(4), who falls within the definition of eligible employee as contained in the fund rules, shall, on or after coming into operation of this determination, become a member of the Private Security Sector Provident Fund (PSSPF). |
| (b) |
If an employee who has become a member of the Fund ceases to fall within the scope of this determination owing to the employee ceasing to be employed in the Private Security Sector or as a result of the employee no longer being classified as an eligible member, as defined, the employee shall cease to be a member of the Fund and the payment of withdrawal benefit will be made to the member as provided for in the Fund Rules. |
Contributions shall be made by employers and employees from the date of operation of this determination as specified hereunder –
| (a) |
The employer shall each month deduct from the earnings of each employee in respect of each month, or part thereof, an amount equal to 7.5% (seven and a half per cent) of the employees Fund Salary, being contributions to the Provident Fund, and employers shall make an equal contribution to the Provident Fund. |
| (b) |
When an employee is on approved leave with full pay, or with less than full pay, the employee shall contribute to the Fund, in accordance with sub clause (2)(a), and the employer shall continue to contribute in respect of the employee, in accordance with sub clause (2)(a), and all benefits under the Fund in respect of the employee shall be maintained. |
| (c) |
If an employee is on approved leave without pay, no contributions shall be made by the employee in terms of sub clause (2)(a), but the employer shall continue to contribute the employers portion of the contribution, in order that the death, disability and funeral benefits shall continue to be payable— |
| (i) |
throughout the period of leave, if the employee’s leave is due to sickness; or |
| (ii) |
for not longer than six months, if the employee’s leave is due to reasons other than sickness. |
| (d) |
The amount payable in each month in terms of this clause shall be deposited by the employer directly into the Fund’s bank account by no later than the 7th day of the month immediately following the month in which deductions and contributions were made and shall be as follows – |
| (i) |
in South African currency; |
| (ii) |
in cash, by cheque or by direct deposit into an account designated by the administrators; and |
| (iii) |
together with such particulars as are required in terms of the Retirement Funds Act and/or by the Board; |
| (iv) |
the contributions payable shall constitute an amount calculated at a rate of not less than the total contributions set out in sub clause (2)(a) of the employee’s salary or as amended by the Board from time to time; |
| (v) |
such amount as referred to in sub clause (2)(b) shall constitute an equal contribution by an employer and employee. |
| (e) |
If any amount which falls due in terms of this clause is not received in full by the administrator of the Fund by the 7th day of the month following the month for which the amount is payable, then the employer is liable to pay penalty interest in accordance with section 13A of the Pension Fund Act. |
| (f) |
Any deductions in terms of this clause will not be in violation of clause 4(11)(d) of this determination. |
| (3) |
Administration and provision of the Fund |
In order to realise the objects of the Fund the trustees shall—
| (a) |
directly control and oversee the operation of the Fund in accordance with the Fund Rules and the Pension Fund Act; |
| (b) |
enter into an agreement with an administrator to administer the Fund; and |
| (i) |
enter into an agreement with a registered insurance company; or |
| (ii) |
establish a self-insurance arrangement or cell captive arrangement to provide Death, Disability and/or Funeral benefits. |
| (a) |
The Fund Rules constitute the rules that govern the Private Security Sector Provident Fund. |
| (b) |
In the event of any discrepancy between this sectoral determination and the Fund Rules, the Fund Rules will apply. |
| (a) |
The following criteria for an exemption from the Private Security Sector Provident Fund will apply, provided that— |
| (i) |
If the employer, prior to the publication of Gazette Notice No. 306 of 30 March 2001, had an existing pension or provident fund registered with the Registrar of Pension Funds covering employees for whom minimum wages are prescribed in Sectoral Determination 6, as amended or replaced. |
| (ii) |
If the employer, prior to the publication of Gazette Notice No. 306 of 30 March 2001, did not have an existing pension or provident fund registered with the Registrar of Pension Funds covering employees for whom minimum wages are prescribed in Sectoral Determination 6, as amended or replaced, but before 30 March 2001, the employer and its employees have consulted in writing to commence negotiations for the establishment of a pension or provident fund for such employees. |
| (b) |
The Board will consider all applications for exemption from the provisions of the Private Security Sector Provident Fund. In the event that there is a dispute, the matter will be referred to the Department of Labour to be dealt with in terms of section 50 of the Basic Conditions of Employment Act, 75 of 1997. |
| (c) |
Applications will be in writing and addressed to the Board of the Private Security Sector |
Provident Fund. Applications shall comply with the following:
| (ii) |
Be accompanied by relevant supporting data and financial information; |
| (iii) |
Applications that affect employees’ conditions of service will not be considered unless the employees or their representatives have been properly consulted and their views fully recorded in an accompanying document; |
| (iv) |
Indicate the period for which the exemption is required. |
| (d) |
In considering the application the Board shall take into consideration all relevant factors, which may include, but shall not be limited to, the following criteria: |
| (i) |
Any special circumstances that exist; |
| (ii) |
Any precedent that may be set; |
| (iii) |
The interest of the industry as regards— |
| (ab) |
Collective bargaining, |
| (ac) |
Potential for labour unrest, |
| (ad) |
Increased employment. |
| (iv) |
The interest of employees as regards: |
| (ac) |
Sound Conditions of Employment, |
| (ad) |
Possible financial benefits, |
| (ab) |
Infringement of basic rights. |
| (v) |
The interest of the employer as regards: |
| (aa) |
Financial stability, |
| (ab) |
Impact on productivity, |
| (ac) |
Future relationship with employees’ trade union, |
| (ad) |
Operational requirements. |
| (e) |
If the application is granted, the Board will issue an exemption certificate, signed by the chairperson, containing the following particulars: |
| (i) |
The full name of the applicant; |
| (ii) |
The trade name of the applicant; |
| (iii) |
The period for which the exemption shall operate; |
| (iv) |
The date of issue; and |
| (v) |
The conditions of the exemption granted. |
| (f) |
If the exemption is refused the Board shall specify its reasons for not granting the application, and which will be communicated to the applicant. |
| (g) |
The Board shall retain a copy of the certificate and number each certificate sequentially. |
| (h) |
An employer to whom a certificate of exemption has been issued shall at all times have the certificate available for inspection at his establishment. |
| (i) |
Any application by an employer for exemption shall in no way whatsoever affect the employer’s obligations, nor his employees’ rights, with regard to the payment of all contributions and benefits in terms of the rules of that employer’s retirement fund and/or his employees’ conditions of employment during any period that the application is under consideration. |
| (a) |
An employee entering the private security sector for the first time and an employee who has been out of the sector for more than six months shall be required to wait for a period of four months before joining the fund. |
| (b) |
An employee with at least four months uninterrupted service in the private security industry, not necessarily with the same employer, shall join the fund immediately upon joining a new employer. |
| (7) |
Special provision during waiting period |
| (a) |
Every employee shall, during the waiting period set out in sub clause (6), enjoy risk cover in respect of death and disability benefits, as well as the fund funeral scheme, which contribution, totalling 5% (five percent) of the Fund Salary, per month shall be borne equally between the employer and the employee. |
| (b) |
This risk cover shall apply as from the first day of employment and shall be submitted to the fund administrators at the end of every month. |
Financial Management of Parliament Act, 2009
