Glossary of Words Used

This Glossary explains words that are used on the website in order to assist members in understanding the contents of the website and the member booklet.

actuary (also sometimes referred to as a valuator) is a person appointed by the board to establish whether there is enough money in the fund to pay out benefits to members in terms of the rules;

additional voluntary contributions are contributions made by a member and they are made in addition to the normal member contributions as set out in the Special Rules;

administrator is a company appointed by the board in terms of a contract to administer the day to day affairs of the fund such as operating the bank account of the fund, keeping of member records, booking, payment of benefit claims in terms of the rules, etc . An administrator of pension funds must be registered with the Financial Services Board;

adjudicator is a person appointed in terms of the Pension Funds Act to hear complaints from pension fund members in a fair manner;

annuity is a fixed sum of money paid to a pensioner usually on monthly basis for a specified length of time;

certified financial planner is a person duly licensed by the Financial Services Board to give financial advice to the public;

Financial Services Board is an independent institution established by Financial Services Board Act, 1990 to oversee and regulate the South African Financial Services Industry, other than banks, in the public interest;

care-giver is a person who looks after the daily care and maintenance needs of a child under the age of 18 years;

fund credit is the benefit that becomes payable when a member leaves the fund on retirement, withdrawal, retrenchment or dismissal from service or death. A member’s fund credit is made up of all his own contributions, plus the net employer contributions (after deduction of all fund expenses) plus interest earned by the fund;

defined contribution fund is a fund where the fund credit (amount of the benefit) payable on retirement depends on the member and net employer contributions paid together with the fund interest earned thereon. This type of fund is also referred to as a money purchase fund;

dependant is defined in the Act as person (such as a spouse or a child) that a fund member is obliged to maintain in terms of law (legal dependant), or a person who was in the opinion of the board in fact dependent on the member for maintenance (factual dependant) or any person who in the future could become financially dependent on the member for maintenance;

insurer means an insurance company duly registered in terms of the Long-term Insurance Act, 1998;

investment manager is a person or persons appointed by the board to perform the investment functions on behalf of the board in terms of a contract with the board;

participating employer is an employer who applies to the board for participation in the fund in order for his employees to enjoy the fund and ancillary benefits provided in terms of the rules and other insurance policies;

provident fund is a retirement funding arrangement as defined in the Act set up to provide benefits for its members on retirement and after death, benefits to dependants and nominees. In terms of current income tax legislation a retiring member can take his full fund credit as a cash lump sum;

preservation fund is a retirement fund set up to preserve a member whose membership of his pension or provident fund ends as a result of resignation or retrenchment or the closing of his fund;

Principal Officer is a person appointed by the board in terms of section 8 of the Act to perform certain duties as set out in the Act;

Registrar/Deputy Registrar is the person appointed as chief executive officer or deputy chief executive officer of the Financial Service Board in terms of the Financial Services Board Act. The job of the Registrar is to supervise retirement fund by requiring all registered funds to report to his office on a number issues pertaining to the fund;

rules are the general rules of the special rules of the fund registered with the Registrar in terms of the Act. The general rules set out the powers and duties of the board.

special rules are the rules issued to a participating employer when a participating employer is approved by the board to participate in the fund. The special rules set out the eligibility conditions, contribution rates and selected benefit structure applicable to employees of that employer who become members of the fund;