COMMUNICATING WITH MEMBERS OF THE DE BEERS PENSION FUND ~ MARCH 2003 ~ ISSUE NO. 11
SURPLUS – will you benefit?
The Laws governing pension funds have been
changed to ensure that any surpluses built up
in pension funds are distributed as defined by
the Pension Funds Act. This may affect you...
which is the topic of this newsletter.
Does the De Beers Pension Fund have
a surplus?
It will only be clear whether the Fund has a surplus
or deficit after the next formal three-yearly
valuation by the Fund’s Actuary in 2004.
At the Fund’s last actuarial valuation in 2001, a
relatively small surplus existed. However, there
is no guarantee that there will be a surplus at the
next actuarial valuation.
In a nutshell...
• IF there is a surplus, WHO will benefit?
Former members (if eligible) will benefit
first (see page 2 for more information). If
there is any surplus remaining after
distribution to former members, it will be
distributed fairly among all eligible
stakeholders.
• IF there is a surplus, WHEN will it be
distributed?
In view of the process prescribed by the Act,
it is unlikely that the surplus distribution (if
any) will take place before 2006.
WHAT IS A
SURPLUS?
THIS NEWSLETTER
APPLIES TO DE BEERS
PENSION FUND
MEMBERS ONLY
If the Trustees, with the assistance of the
Actuary, calculate that a pension fund has
more assets (money) than is needed to meet
its liabilities (benefits to be paid to members)
then it has a surplus.
If it has less assets
than its financial
commitments to
members, it is
in deficit.
• IF there is a surplus, HOW will it be
distributed?
Any surplus allocated for working members
or pensioners may only be used to secure
future benefits or to reduce contributions.
• What MUST YOU DO in the meantime?
If you had broken service (and only then)
do you need to provide your information
to the Fund – read more on page 3.
IMPORTANT:
If there is a deficit, there will simply be no
funds to distribute.
page 1
WHO will benefit if there is a surplus?
If the actuarial valuation in 2004 shows that a surplus exists in the
Fund, the surplus will be distributed according to the process laid
down by law.
First in line would be:
Former members who left the Fund for any reason
(resignation, retrenchment, dismissal) since
1 January 1980. They will receive the difference
between what they received when they withdrew
from the Fund and the minimum benefit stipulated
by the new legislation, provided this is not more
than the actuarial surplus. If there is inadequate
surplus to meet the former member claims, then
their claims will be reduced on a pro-rata basis.
Once former members have been paid and
IF there is any surplus left:
The Trustees must decide how the remaining
surplus (if any) should be fairly shared among
the stakeholders which are defined in the Act as:
• Current/deferred pensioners
• Current working members
• The Company
• Other eligible stakeholders
Please note that not ALL former members may be eligible to share in any initial surplus distribution.
Depending on the option that a former member elected on withdrawal, the benefit that he/she
received could have been in excess of the minimum benefit as defined by the Act. As a result, he/she
may not be entitled to a top-up payment.
The Fund will be placing advertisements in newspapers and on radio to invite former members to come forward
and submit evidence to substantiate their claim. Unless current pensioners and working members have broken
service with the Company (see page 3), they do NOT need to do anything.
WHEN would distribution take place, if there is a surplus?
The Fund will have to go through many
months of intensive investigation and
planning. Distribution, if any, will be a lengthy
process.
• The Fund’s actuarial valuation will take place
in 2004.
• If there is a surplus, a scheme of distribution
must be developed, communicated and
approved by the Trustees and lodged with
the Registrar of Pension Funds by
31 August 2005.
• The Financial Services Board (FSB) must then
approve the scheme of distribution.
• Only after approval has been obtained, will
the distribution begin, if
applicable.
The Fund will adhere to the
relevant legal requirements at
all times during the entire
process and will keep you
informed.
It will therefore take some time before the distribution of the surplus (if any) takes place.
In terms of the Act, the Trustees are required to appoint a person to represent the interests of former
members in the surplus apportionment. This appointment is currently being finalised.
HOW will the surplus (if any) be distributed?
If the Fund has any surplus
for distribution, only
FORMER MEMBERS will
receive cash.
Working members and pensioners WILL NOT RECEIVE A ONCEOFF CASH LUMP SUM - any surplus will be used to secure future
benefits or reduce
contributions.
page 2
As a MEMBER, what must YOU DO?
The Fund is searching for former members who have
withdrawn from the Fund since 1 January 1980.
DO YOU KNOW...
Please read below
before submitting any information
to the Fund.
... any former members of the Fund? Please ask
them to register their claim with the Fund by
30 September 2003, otherwise they may be
excluded from any potential surplus distribution.
If you have been working continuously
for the Company
If you have broken service
with the Company
You do NOT need to give the Fund any
information, as your details are already on record
at the Fund’s offices.
You need to submit evidence of your former
membership to the Fund, so that you will receive
part of the surplus, if applicable.
Example:
Example:
Arnold has continuous service with the Company
- he started working for the Company in 1985 and
is still working.
Peter started working for the Company in 1985,
but left (through resignation / retrenchment /
dismissal) in 1992. He received his withdrawal
benefit from the Fund when he left.
IMPORTANT:
Should Arnold submit any
documents to the Fund?
No. Because Arnold has unbroken service
with the Company, he should NOT submit
any information to the Fund. Because
Arnold still belongs to the Fund,
all his information is already on record at
the Fund’s offices.
FORMER MEMBERS
(including working members and pensioners
with broken service) need to notify the Fund
of the following by 30 September 2003.
• Name and surname.
• Current address, contact telephone number and
e-mail address, if available.
• Identity number.
• A certified copy of the front page (which bears
his/her photograph) of his/her Identity Document.
• Membership and/or Company number.
• Name of the operation or division he/she worked
for when he/she left the Fund.
• Date he/she joined the De Beers Pension Fund.
• Date he/she left the Fund.
• Reason for leaving the Fund.
• Amount of benefit received.
In 1995, Peter started working for the
Company again.
Should Peter submit any documents
to the Fund?
Yes. Peter has to submit evidence of his former
membership (1985 - 1992) to the Fund so that he
can possibly claim part of the surplus (if any) that
will be paid to former members.
He needs to register his details with the Fund
– see below for more information.
• How the benefit was paid – by cheque, payment
directly into his/her bank account or transfer to
another fund.
• Documentation to substantiate his/her
claim, e.g. any correspondence he/she
received at the date of leaving the Fund,
a copy of his/her last
information statement or
payslip indicating
deduction of contribution.
• Any questions he/she may
have.
SEND INFO TO:
Former Member Division, De Beers Pension
Fund, Private Bag X6008, Kimberley, 8300
page 3
PENSIONERS’ CORNER
Discount information streams in
In the Randburg area ...
Cinemas at the Randburg
Waterfront charge R16.50
for
pensioners (vs. R18). Mo
vies
start at 17:15 daily.
Please accept my thanks for
the
great increase. It is really
very
much appreciated.
In a previous issue of Fund Focus we asked you to tell us about
pensioner discounts in your area. Thank you for your
overwhelming response – with your help, our pensioners can
now stretch their pensions even further!
.
In the Durban area..
Durban
local travel offered by
• Bus tickets for
on for
a
y
age - 65. Bu coup
Transport. Qualifying
rney.
jou
r
pe
p
r coupon; 1 cli
R11.50 - 10 clips pe
- 5%
ad
Ro
ni
le Market in Umge
ow
sh
• Everfresh Vegetab
u
yo
if
ys
on Wednesda
discount to pensioners
your pensioner card.
Gardens d of Durban Botanic
• Become a Frien
) and
er for R75 (vs. R100
pensioners can regist
5) for concerts.
then pay R20 (vs. R3
age; just
pa
ws per - no specific
• Natal Mercury ne
t.
co
number for a dis un
give your pensioner
special
a
s
Durban Waterfront ha
• Wykato Spur at
ecial prices.
seniors’ menu with sp
Restaurant – Traditional
Port Alfred – The Thistle
pensioners (vs. R42.50)
Sunday Lunch – R35 for
“eat as much as
Mpekweni Sun – Sunday Lunch
R60)
you like” – R45 for pensioners (vs.
GENERAL
• Ster Kinekor - If you
are older than
60 (show your ID), buy a
60 PLUS card
for R5 and enjoy a discount
on all movies
shown Mondays to Fridays
from 09:00
- 17:30 and weekends bef
ore 14:30.
• Clicks - Pensioners (60
and over) have
to obtain a senior citizen
card to collect
points for purchases made
and receive
cash-back vouchers.
• Game - 10% discount
to pensioners (60
and over) on Wednesdays,
excluding
specials.
Bronkhorstspruit Spar discounts on all items except
bread every day of the week
- only for pensioners in
Bronkhorstspruit and you
have to register.
nsioners with
shops that provide pe
of
Fund is
se
ba
ta
da
a
of
that De Beers Pension
lp
he
The building up
e
th
r
fo
ks
an
th
idea; many
discounts is a noble
ers.
ion
ns
pe
providing their
ermanus
A pensioner from H
PENSION
POST
Keep on writing and e-mailing your concerns,
topics of interest or comments on articles
you've read in Fund Focus to:
Pension Post
De Beers Pension Fund
P O Box 1922
Kimberley
8300
Or e-mail us at:
[email protected]
Spar Supermarket in
Langebaan – 5%
discount.
A pensioner from
Langebaan
A pensioner from Polokwane
South Coast – Spar Grocery
chain grants a 5% discount to
pensioners on Tuesday each week.
One has to register at your local
Spar and be given a discount card.
A pensioner from KZN
South Coast
Have just read
"Pensioners' Co
rner and would
you with a shor
like to provide
t list of shops et
c. around Geo
discounts to pe
rge that offer
nsioners.
Some of the sh
ops don't alway
s advertise this
to become seco
fact, so it has
nd nature to al
ways ask. One
embarrassed ab
sh
ouldn't feel
out this, as the
number of pens
there is swellin
io
ners out
g by the day an
d they are in m
customers. They
os
t
cases cash
also provide a st
eady income to
when the touris
shopkeepers
ts are not arou
nd.
ServiStar, Berg
sig, 10% discou
nt on Wednesd
60 years & olde
ay's for those
r • Plantjie N
ursery, on the
10% on Wedne
airport road sdays • Marsh
alls Restaurant
special prices on
, Meade St buffet every ev
ening and Sund
(R29 iso R39)
ay afternoons
• Kenoni Spar
, York St - 5%
Tuesdays • Kw
discount on
ikspar, Bergsig
- 5% on Wedne
must show your
sdays
pensioner card
or be older than (you
60)
A pensioner fr
om George
The above information has been received from
pensioners in various regions in South Africa. Please
note that the Pension Fund cannot be held responsible
for any errors in this regard – if you are uncertain
about pensioner discounts offered, rather ask before
you buy anything.
KEEP GOING!
Please send any information you have on
pensioner discounts to the Fund, at the
contact details given under Pension Post.
page 4