Fund Rules

Rules of the MCPF

MCPF rules were registered on 28 July 1989 taking into account the Pension Fund Act. Members are encouraged to familiarise themselves with the MCPF rules as these rules give direction to all decisions taken by the Board.

Our first revised rules were registered on 20 May 1997 with the second revision being registered on 29 August 2002 with effect from July 2001 and amended by the following:

  • Amendment registered by the Registrar on 30.08.2002 (Delete the definition of “ELIGIBLE SPOUSE”; sections 16(3), 19(2) and 35)
  • Amendment registered by the Registrar on 04.03.2003 (references to a 15 year restriction on contributory membership removed – Rule 24(6) and Rule 34)
  • The Taxation Laws Amendment Act, 2013 passed some of Government’s retirement reform proposals into law.
  • This reform is meant to encourage the general public to save towards retirement.
  • Among other things it will limit the amount one can withdraw in cash from the provident fund to 1/3 of their benefit for all benefits accumulated after the 1st of March 2015.
  • Any benefits accumulated prior to that date can be withdrawn in full.
  • MCPF councillors will not be affected by this reform due to nature of the fund i.e. it is more of a short term savings as councillors are only elected for a period of 5 years.
  • Councillors will be allowed to withdraw their benefits in full at any point as long as they are no longer members of the fund.

The MCPF Board is continuously looking at way to improve member benefits whilst keeping in line with the Rules and welcome all suggestions from members may

Contributions

Contributions are made in accordance with the Remuneration of Public Office Bearers Act No.20 of 1998 and subsequent Government Notices that get issued in this regard from
time to time.

Contributions
Member = 13.75%
Council = 15.00%
Total = 28.75%
Member’s share account (fund credit) is completetd as follows
a. Own contributions 13.75%
b. Portion of council’s contributions
*Minus risk benefits and costs
Allocation to member
15.00%
– 6.00%
9.00%
9.00%
c. Plus interest and investment returns Total Fund Credit 22.75%
_ x.xx _
x.xx
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All Benefits are taxable