The objects of the provident fund shall not be less than
| 2.1.1. | To provide a retirement savings plan for its members, |
| 2.1.2. | To provide a life and disability benefit for its members, |
| 2.1.3. | To provide an income replacement plan for its members; and |
| 2.1.4. | To provide funeral benefits for its members and their immediate family members, as per the rules of the fund. |
| 2.2. | MEMBERSHIP, MONTHLY CONTRIBUTIONS, ANNUAL INCREASE IN MONTHLY CONTRIBUTIONS AND PAYMENT OF MONTHLY CONTRIBUTIONS DURING OFFICIAL CLOSED SEASON MONTHS FOR SQUID FISHING. |
| 2.2.1.1. | Membership to the provident fund shall be compulsory in respect of all employers and employees in the Squid Fishing and Related Industries of South Africa. |
| 2.2.1.2. | Only a duly registered, accredited and Council approved service provider, which complies with the objects of the fund as per 2.1. above shall be considered to provide a provident fund service to the fishermen / employees in the Squid Industry. |
| 2.2.1.3. | Each member shall be issued with certificated proof that he is a member of a provident fund and shall be entitled to receive an annual statement of his benefits. |
| 2.2.2. | MONTHLY CONTRIBUTIONS |
| 2.2.2.1. | The minimum monthly contribution to the provident fund per member / employee shall not be less than R 340,00 per employee per month. |
| 2.2.2.2. | An employer shall contribute 50% and an employee shall contribute 50% of the monthly provident fund contribution due by a member. |
| 2.2.3. | ANNUAL INCREASE IN MONTHLY CONTRIBUTIONS |
| 2.2.3.1. | The monthly provident fund contribution shall be increased annually on the effective date of 01 December every year, by an agreed upon percentage which shall be determined by the parties to this agreement, but shall not be less that the annual Consumer Price index (CPI) as determined on a year upon year basis each year. |
| 2.2.4. | PAYMENT OF MONTHLY CONTRIBUTIONS DURING OFFICIAL CLOSED SEASON MONTHS FOR SQUID FISHING. |
| 2.2.4.1. | To ensure continuation of full and all, provident fund benefits entitled to an employee during the Official Closed Season Months (OCSM) every year, during which months no Squid fishing is allowed, every employer shall: |
| 2.2.4.1.1. | Deduct the employee's total monthly contributions in respect of the employee's provident fund contributions due and payable during the OCSM, during the month (or months) immediately preceding / leading up to the months of OCSM, from an employee's earnings. |
| 2.2.4.1.2. | The deductions thus made in respect of the employee's provident fund contributions, due during the OCSM, shall together with the employer's portion to the provident fund contribution, be paid over by the employer, on a monthly basis during the OCSM, by the employer to the provident fund service provider. |
EXAMPLE: Assuming OCSM during April, May and June of a year:
| (a) | an employer shall in respect of all his employees, deduct an amount equal to the monthly amount payable to the provident fund by an employee during the OCSM (it being 50% of the total monthly amount) from an employee's earnings at the end of the months prior to or leading up to the OCSM, in this example these months being the end of December and /or January and /or February and /or March. |
| (b) | an employer shall proceed to pay to the service provider, the full monthly contributions (the employee's portion deduced as described in (a) above well as the employer's portion) due to the provident fund, on behalf of an employee, on a monthly basis, for the period of the OCSM. |
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| 2.2.4.1.3. | The council shall not be held responsible for any— |
| 2.2.4.1.3.1. | contributions deducted and any contributions made or due by and employer or employee, which are not paid to the provident fund, |
| 2.2.4.1.3.2. | claims in respect of any benefit, that may arise by an employee who is or, an employee who is not a member, of the provident fund and |
| 2.3. | ENFORCEMENT AND COMPLIANCE |
The Council will be responsible for enforcement and compliance of all employers and employees regarding membership and monthly contributions to the provident fund.
