| 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]
Older Persons Act, 2006
