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Labour Relations Act, 1995 (Act No. 66 of 1995)

Notices

Bargaining Council for the Civil Engineering Industry

Extension of Consolidated Exemptions Collective Agreement to Non-parties

6. Exemptions - Construction Industry Retirement Benefit Fund (CIRBF)

 

(a) Further to the provision of clause 4 above the following provisions will also be applicable to the CIRBF related exemptions.

 

(b) The criteria for determining exemptions from the CIRBF are as follows:
i. Total contributions to the private fund must be at least equal to those required in terms of the CIRBF;
ii. Contribution holidays are to be specifically excluded from proposed rules of a Defined Benefit Fund;
iii. Overall benefit package must, on the whole, not be less favourable than the benefits provided by the CIRBF;
iv. The comparative percentage of employer net contributions paid out on withdrawal ;
v. In the case of Defined Contribution Funds, the percentage of the employers' and employees' salary actually credited to the fund, after deduction of administration fees and the cost of insured benefits;
vi. There must be no waiting period for membership of the fund;
vii. The right to transfer actuarial reserve to the CIRBF on withdrawal;
viii. Provision must be made for death and disability insurance;
ix. In the case of defined benefit funds, the basis on which the pension is calculated.

 

(c) CIRBF representatives must be invited by the applicant and given the opportunity to address management and the workforce prior to exemption being considered.

 

(d) The majority of the affected employees  must support the application for exemption and the remainder will be required to follow the majority decision.

Exemption will only be given in respect of all employees in order to avoid selective membership to the possible disadvantage of the CIRBF.

 

(e) Where the majority of affected employees are members of a trade union which is a signatory to the CIRBF Collective Agreement, the trade union must support the application.

 

(f) The exemption can be withdrawn by the Committee or IAB should circumstances warrant it.

 

(g) Benefits may not be reduced without a fresh exemption application to this effect being made and granted.

 

(h) The application is to be submitted by the Office to the CIRBF Fund Administrators for comparison. The Committee or IAB may approach an independent actuary to evaluate a complex application if and when required.