SALGBC CIRCULAR 4/2022: ACCREDITATION OF RETIREMENT FUNDS IN TERMS OF THE RETIREMENT FUND COLLECTIVE AGREEMENT
The Circular deals with the following matters:
1. Historical Background
The Circular sets out the historical background surrounding the negotiations on retirement fund restructuring and the principles which formed the basis of the negotiations.
2. Freedom of Association
The Circular confirms that members of accredited retirement funds may transfer to another accredited defined contribution fund as from 1 July 2022. This window period will close on 31 December 2022.
Fund members may also choose to remain in their current fund provided that it is accredited.
3. List of Accredited Funds
The Circular provides a list of the funds that have applied for accreditation and the funds that have subsequently been accredited. The Circular also provides a list of the accreditation applications which are still outstanding and explains the reasons for the delay.
4. List of Funds that did not apply for Accreditation
A list of funds that have not applied for accreditation, and the reasons for their failure to do so, are outlined in the Circular. This includes funds that have opted to bring court proceedings against the process.
5. Administrative Guidelines
The Circular advises that the accreditation committee of the SALGBC is still in the process of developing implementation guidelines that will be issued in due course.
6. KZN Funds
The Circular explains the special circumstances that apply to KZN Funds (excluding eThekwini-based funds) which are affected by an old provincial ordinance that requires KZN municipalities to contribute to KZN funds only. An update is given on the work done by the SALGBC to get the KZN Provincial Government to repeal the ordinance.
This is important to allow KZN fund members to transfer to a fund of their choice during the freedom of association window period.
