Asked by the Customer on 04-12-2014 11:21:08
Question posted in the General Law category relating to Eastern Cape
Question posted in the General Law category relating to Eastern Cape
Hi,
I would like to get advice on how to deal with an issue whereby the employee has been contributing to a pension fund on cost to company arrangement and later when the company/organization introduces conditions of employment wherein the company comes up with its preferred pension fund and offering to subsidize employee only for that contribution to the company preferred pension fund.
Background to the matter
•We (about 18 employees) joined the fund on a cost to company bases before our company introduced conditions of employment which amongst other things provide a subsidy for contributions to a fund preferred by the employer which is Old Mutual Evergreen in this case.
•We then had a meeting with Bokamoso Retirement Fund in May 2014, to inform them about this development and our intention to withdraw our membership with them because the company will not subsidize employees for other funds as the subsidy is only provided for contributions to the fund preferred by the employer.
•At that meeting Bokamoso informed us that they will have to meet with FSB to request a deviation or permission for us to withdraw our membership and transfer our funds to the preservation fund of our choice or to the company fund because of the reasons advanced above which was also informed by the issue of affordability bearing in mind that we have been contributing from our own pockets which was taking a lot of train from us.
•The fund then gave us option forms for withdrawal of membership which contained three options (1.defer contributions to Bokamoso ,2.Transfer funds to the company fund,3 Continue to be the member and contributions and 4.transfer funds to the preservation fund of our choice) which led us to believe that indeed they have been granted permission to exercise those option.
•Then we were told that the funds were sent to the actuaries and duly returned with the calculations which needed to be approved by the Funds Board of Trustees.
•The fund’s Board of Trustees met on 14 November 2014 and resolved that as per the funds rules we cannot withdraw our membership to the fund whist we are still under the same employer.
This is where we are now and would request legal advice that will empower us to withdraw our membership and enjoy the employer’s benefit.
I hope you will find the above in order.
I would like to get advice on how to deal with an issue whereby the employee has been contributing to a pension fund on cost to company arrangement and later when the company/organization introduces conditions of employment wherein the company comes up with its preferred pension fund and offering to subsidize employee only for that contribution to the company preferred pension fund.
Background to the matter
•We (about 18 employees) joined the fund on a cost to company bases before our company introduced conditions of employment which amongst other things provide a subsidy for contributions to a fund preferred by the employer which is Old Mutual Evergreen in this case.
•We then had a meeting with Bokamoso Retirement Fund in May 2014, to inform them about this development and our intention to withdraw our membership with them because the company will not subsidize employees for other funds as the subsidy is only provided for contributions to the fund preferred by the employer.
•At that meeting Bokamoso informed us that they will have to meet with FSB to request a deviation or permission for us to withdraw our membership and transfer our funds to the preservation fund of our choice or to the company fund because of the reasons advanced above which was also informed by the issue of affordability bearing in mind that we have been contributing from our own pockets which was taking a lot of train from us.
•The fund then gave us option forms for withdrawal of membership which contained three options (1.defer contributions to Bokamoso ,2.Transfer funds to the company fund,3 Continue to be the member and contributions and 4.transfer funds to the preservation fund of our choice) which led us to believe that indeed they have been granted permission to exercise those option.
•Then we were told that the funds were sent to the actuaries and duly returned with the calculations which needed to be approved by the Funds Board of Trustees.
•The fund’s Board of Trustees met on 14 November 2014 and resolved that as per the funds rules we cannot withdraw our membership to the fund whist we are still under the same employer.
This is where we are now and would request legal advice that will empower us to withdraw our membership and enjoy the employer’s benefit.
I hope you will find the above in order.
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