FUTURE

YOUR FUND WINS BEST PRACTICEAWARD FOR MEMBER COMMUNICATION

Your Fund has once again been recognised by its peers as having aworld-class communication strategy. The Fund won a Best PracticeAward for Stakeholder Engagement and Education at the Institute ofRetirement Funds Africa Awards evening held recently.

The IRFA is a non political body which represents and promotes theinterests of the retirement industry in Southern Africa, to the ultimatebenefit of the members of retirement funds.

Annually the IRFA grant Best Practices awards in 6 areas of excellence:

o Governance o Transformation o Stakeholder Engagement and Education o Investment Practices o Trustee Development o Financial Management and Reporting

By entering this competition funds share their strategies andprogrammes with their peers in the industry which contributes tomaintaining consistently high standards and practice throughout theretirement fund industry.

This year saw a record number of entries in all categories. As a multiplewinner your Fund is proud to add another award for Excellence inStakeholder Engagement and Education to its collection.

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THE CONTRACT CLEANING NATIONAL PROVIDENT FUNDYour Fund Your Future

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CONTACT THE FUND

Please use the following for any comment or queries

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Issue 1 | 2019

FUND CONTACT DETAILS:

Queries contact: 010 206 0701Complaints contact: 010 206 0607

c ontent :

1. Fund wins Best Practice Award for

member communication

2. Meet your Board of Trustees

3. End of Contract

4. What you need to know about death benefits

5. Compliance regarding the payment

of contributions

6. Make sure you visit the Fund's website

7. Reaching out to members

8. Default Regulations

MEET YOUR BOARD OF TRUSTEES

Your Board of Trustees works diligently to ensure that the Fund ismanaged prudently and provides retirement fund benefits to members.

Standing, from left to right:

Cynthia Ndika, David Reynolds, Wiseman Dinwa, Thamsanqa Makeleni,Alpheus Phala, Caroline Sibiya, Amos Mogano, Zamekile Mose, Mabatho

Seeiso and Mampho Mofokeng.

Sitting, from left to right: Dimakatso Lefera, Mmabatho Skosana,Yakshini Padayachee, Jack Mazibuko, Samson Ndou and Reneth Leboho.

Absent: Trevor Ackerman, Lennox Batchelor and Yvette Symms.

As specified on PF 130,Trustees are required tocommunicate andupdate the members ofthe Fund regularly withthe Fund and industrydevelopments.

REACHING OUT TO MEMBERS

As specified on PF 130, Trustees are required to communicateand update the members of the Fund regularly with the Fundand industry developments.

The JohannesburgGeneral Meeting

General MeetingsThe Trustees adopted the General Meetings communicationmethods. The general meetings are held twice a year in thefollowing regions:- North West: Rustenburg- Gauteng: Pretoria and Johannesburg- Free State: Bloemfontein- Eastern Cape: East London, Port Elizabeth and Mthatha- Western Cape: Cape Town and George

Mall Visits:In an effort to bring service to the members, the Fund will visitvarious malls in the country during 2019.

For dates and venues, please visit the Fund calendar onwww.ccnpf.co.za

DEFAULT REGULATIONS

In terms of the law, every retirement fund needs to put in placefund default strategies by 1 March 2019.

The regulations aim to improve the outcomes for members byensuring that they get good value for their savings and retirecomfortably.

The regulations require all retirement funds in South Africa toensure they provide:

WHAT DOES DEFAULT MEAN?It is an automatic pre-selected option (chosed by your fund),

when you fail to make a choice/selection)

Default Investment Portfolio;Default Preservation Strategy; andDefault Annuity (pension) Strategy.

Default Investment Strategy (Portfolio)The regulations require trustees to offer a default investmentportfolio(s) to contributing members who do not exercise anychoice regarding how their contributions should be invested.

The investment portfolio(s) that members are defaulted intoshould be:

appropriate; reasonably priced; well communicated to members; and offer good value for money.

At the first Board meeting of the year the Trustees willreview and decide on the default investment option theBoard will be adopting.

Default Preservation StrategyThe regulations require that trustees offer a default in-fundpreservation arrangement to members who leave the service ofa participating employer before retirement.

Fund rules will have been amended to allow for resigningemployees to automatically leave their accumulated retirementsavings in the Fund. However, members will still be able totake their benefits in cash.

From 1 March 2019, if you resign, you will become a paid-upmember of the Fund. This means your money remainsinvested in the Fund unless you inform the Fund that youwant to take your money in cash.

Together with the above, members should have access toretirement benefit counselling, particularly before anywithdrawal benefits are paid in cash to them or transferred toanother fund.

Annuity (pension) StrategyFor retiring members, a fund should have an annuity strategythat provides access to a reasonably priced monthly pensionat retirement.

Members may still elect to take their retirement fund benefits incash and pay the maximum rate of tax. Members may alsodecide to buy an annuity of their choice (Life or Living annuity)from any registered insurer in the market.

Members must be given access to retirement benefit counsellingat least 3 months prior to their normal retirement age.

At the first Board meeting of the year the Trustees willreview and decide on the default pension option the Boardwill be adopting.

PLEASE REMEMBER these changes provide more options to membersand there is no need to be concerned. Defaults will only kick in when youas a member neglect to make a choice when exiting the Fund.

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END OF CONTRACT

When you resign and no longer work as a contract cleaner orsupervisor your total member share will be paid to you as acash lump sum.

However, effective 01 January 2018 if your contract ends atone employer and you start working at another employer asa contract cleaner or supervisor, you have an option to eitherwithdraw your share of the Fund from your previousemployer or preserve your retirement fund by transferring itto your new employer.

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WHAT YOU NEED TO KNOW ABOUT DEATH BENEFITS

The ProcessThe Act requires the trustees to conduct an investigation intothe member’s dependants at the time of their death beforedeciding how the benefit will be allocated. The Act grants thetrustees at least 12 months to search for dependants, but thetimeframe for allocating the benefit depends on thecompleteness of the information provided, as well as theresponse time of the dependants and nominees. In all instances,the trustees aim to distribute the death benefit as quickly aspossible. However, the process can be challenging and thetiming depends on how long it takes to find the dependants.

Nominate Your BeneficiariesShould you pass away in service, your death benefit will bepayable to your beneficiaries. You will have to complete a Nomination of Beneficiaries Form,listing the details of all your financial dependents and anyoneelse you want to nominate to share your benefit with and thepercentage. You have to hand in the form to your HumanResources Department. Your Human Resources Department isbound by strict rules of confidentiality and may not tell anyonewho your nominees are.

You may amend your Nomination form annually and shouldbe done every time your dependents change due to birth,death, divorce etc. should you not include all relevantbeneficiaries, the Trustees have a right to overrule anomination form, or to include the beneficiaries you had leftout if they meet the requirements of a dependent asdetermined by the rules. The beneficiaries include childrenborn out of wedlock.

The goal of saving for retirement is to provide an income atretirement. The Fund gives members an option to withdrawtheir retirement benefit before retirement when they changeemployers in the contract cleaning industry. Many people areusing this option without fully understanding the effects “earlywithdrawals” will have on their financial position at retirement.Due to the nature of the contract cleaning industry, membersare constantly moving from one employer to anotheremployer. Each time members take the option of withdrawingtheir retirement benefit, the members are reducing the fundbenefits they will have available at retirement.

PLEASE NOTE: Members who are over 65 years but are stillmembers of the Fund, are no longer covered for any riskbenefits i.e. funeral, disability and death benefits.

Pule, do I have tocomplete a nominationof beneficiary form if I

have a Will?

You need to complete a nomination of beneficiary form even if you have a Will, Bongani.

A Will is not a nomination form andcannot be used to choose your

beneficiaries.

Beneficiary FundWhen a death benefit is due to a minor child then the trusteesmay only pay the benefit to the guardian of the minor child orto a beneficiary fund.

ask PULE

Please note: If the non-compliance continues for a periodof 90 days after the 7th day of the month the Principal Officer“PO” must report the matter to the South African PoliceServices “SAPS”. The PO together with the Compliance team are openingcriminal cases against non – compliant employers.

It is important for the Fund members to visit any of the NBCoffices or contact NBC to check the compliance status of theiremployers.

If your employer is non – compliant, please contact the NBCcompliance desk for assistance:

Email: CCNPFCompliance@nbc.co.zaTelephone: 010 206 0057

The Fund has appointed ABSA Beneficiary Fund as the serviceprovider for the Beneficiary Fund.

DID YOU KNOW? LOANS

The Fund does not lend money to any member. The rules

of the Fund do not make provision for any loans.

COMPLIANCE REGARDING PAYMENT OF CONTRIBUTIONS

Section 13A of the Pension Funds ActSection 13A of the Pension Funds Act (“the Act”) prescribes twoseparate liabilities in relation to payment of contributions foran employer which participates in a retirement fund.

The obligations are as follows:• A participating employer is obliged to pay contributions in

terms of the rules of the Fund to the Fund’s bank accountnot later than 7 days after the end of the month for whichsuch contributions are payable; and

• A participating employer further has to providecontribution schedules to the Fund not later than 15 daysafter the end of the month in respect of which the paymentwas made to ensure that the contributions are allocated tothe correct members.

Types of Non – Compliance on the Fund: Employers who do not deduct contributions from their

employees; Employers who deduct contributions from their employees

but do not pay them over to the Fund; Employers who deduct contributions and pay them to the

Fund but do not send a schedule that is used to allocatecontributions;

Employers who send a schedule that is used to allocatecontributions but do not pay the contributions.

What the Fund is doing: The compliance team sends section 13A letters to the

employers to advise them of the non – compliance and toget them to become compliant;

The NBC legal team sends letters of demand to theemployers; and

The employer is referred to the Fund attorneys, MafenyaAttorneys to escalate the matter through the court.

MAKE SURE YOU VISIT THE FUND'S WEBSITE

The Fund is pleased to inform you that in an effort to get up todate information to the members, a website has been set up.www.ccnpf.co.za

Pule, how will Iknow if there is ageneral meeting

in my region?

You should go to the fund website and check

the fund calendar for thedate and venue of the

general meeting.

ask PULE

DID YOU KNOW?

It is very important that you ensure that you are a registered tax payer before deciding to withdraw or retire

from the Fund. If you are not registered as a tax payer, or if your tax affairs are not in order SARS will not

provide a tax directive and your benefits from the Fund cannot be paid