---------- Forwarded message ----------
From: William Morton <morloc55@gmail.com>
Date: Tue, Mar 1, 2011 at 11:13 PM
Subject: S.A. Dental Technicians Pension Fund
To: Axel.dentasa@gmail.com
Dear Axel,
As you know there is a problem with the pension fund for various reasons, there seem to be a misunderstanding, amongst others, that the Council has taken a resolution in May 2009 to the effect that the pension fund will be disbanded, see Dentasa`s e-alert dated 26 June 2009. No such resolution was taken, Council decided that it can not force a dental technician to belong to a specific pension fund, but that membership to a pension fund was compulsory, this resolution, however, was not communicated correctly, as their are conditions for a member to leave the said fund.
1) The member must apply for exemption from the fund,
2) Member must supply reasons for exemption
3) Member must supply particulars of the new pension fund member will belong to
4) This pension fund must be registered with the FSB ( Financial Services Board)
5) Proof must be given that the new fund will generate the same or better benefits than S.A.Dent Pension Fund for the same premium
6) This application must be done yearly and the proof, as described, must also be supplied with application.
There seem to be a number of employees that are not members of the fund and I must remind you that there are consequences for employers who discourage their employees to belong to the fund. There are a number of employees who pay their fees on a lower salary than which they are actually earning, this, as you know, is detrimental to the benefits of the employee.
A decision was taken at the last trustee meeting, 23 February 2011, that there will be changes to the handling of the fund in future.
1) Statements will be sent out twice a year to members directly and not to employers as previously, as statements and letters seem not to reach members. It is therefore imperative that members see that their correct postal address is at the administrators, ABSA is in the proses of updating their database
2) Statements will be accompanied by financial statements of the fund so that members can see where their investments are and by whom they are handled
3) Clear instructions will be issued to members how to access their account via Absa`s website.
I have approached the adjudicator of FSB regarding the problems with the pension fund and to give clarification as to some critical issues, especially the opinion by some people that the employment regulations of Council do not apply any more. As the Council is a Regulatory Authority, it has the right to determine employment regulations for Dental Technician employees and untill the regulations are changed they are in effect and binding.
I would appreciate it if you could inform all members of the above on your tour to the branches, if you have have any questions or need more information, please do not hesitate to contact me. I hoped to have the answer from the adjudicator before you leave but it does not seem likely, I will let you know as soon as I do hear from them.
Regards,
William Morton ( Chairperson S.A. Dent Pension Fund)
According to the Dental Technicians Act, all registered dental technician employees are required to belong to the
THE SOUTH AFRICAN DENTAL TECHNICIAN EMPLOYEES PENSION FUND.
All you'll need to belong to the pension fund:
Dental Technicians Pension Fund Booklet as a .pdf file
Pension Fund Application Form for Employees (Eng)
Pension Fund Application Form for Employees (Afr)
Fund Administrators:
ABSA Consultants & Actuaries
Contact Johan Badenhorst at 012- 431 3409
Fax: 012- 431 3598 Email: johanjb@absa.co.za
Private Bag x43
Hatfield
0028
SA Dental Technicians Pension Fund Investments 2010
Advantage High Interest Portfolio
Although the Pension Fund cannot be seen as one of the direct benefits of being a DENTASA member, one of the Pension Fund Trustees Mariaan Roets is also members of the DENTASA Executive Committee.
Administration Problems and Solutions
1. Payment of contributions:
In terms of the Pension Funds Act, contributions must be paid within seven days. Failure to comply could lead to penalty interest as well as criminal charges being lodged against the lab owner by the Public Prosecutor. Please ensure that ABSA Consultants & Actuaries have the correct contact details of all laboratories, in order for them to contact you before problems arise.
2. Submission of monthly schedules: In terms of the Pension Funds Act, schedules must be submitted within 15 days. Very few laboratories adhere to this requirement, this can lead to contributions being allocated incorrectly. Again contact details need to be correct.
3. Submission of claim forms: Where a former member (employee) was replaced by a new member(employee) and administrators were not informed, the former member can be credited with the monthly contribution. This can also lead to delays with the finalization of claims.
4. Notification of salary increases: In the event of a claim, the wrong benefit can be paid.
5. Notification of new members: Some laboratories do not enter their new members on the fund despite being compulsory for all permanent technicians. If a technician that was supposed to be on the fund, dies or becomes disabled, the relevant laboratory owner, could be held responsible.
6. Using the correct salaries: It is our experience that in virtually all instances the incorrect salary is used. An understatement of salary not only leads to poor benefits being paid by the fund, it also has the effect that the basic costs of the fund are overstated. The situation is complicated as in many instances the technicians are employed in a "cost to company" basis where the pension contributions as well as the medical aid form part of the technician's salary package.
The correct way to calculate contributions to the pension fund.
(Salary-medical aid contribution)/ 1.14= Netto Salary
7% on the netto salary is then calculated for the employers part and another 7% is calculated for the members part.
e.g.
(R7000 - R1000)/1.14 = R5263
Employer's contribution: R368.41
Member's contribution: R368.41
Dental Technicians Pension Fund Booklet in word.doc form
Dental Technicians Pension Fund Booklet as a .pdf file
Fund Administrators:
ABSA Consultants & Actuaries
Contact Johan Badenhorst at 012- 431 3409
Fax: 012- 431 3598 Email: johanjb@absa.co.za
Private Bag x43
Hatfield
0028
The importance of The SA Dental Technicians Employees Pension Fund
It is generally accepted that approximately only 9 % of all South Africans will retire financially independent. Unfortunately not many dental technicians will be part of this 9% of the population and the problem lies with the technicians. It has been found that many dental technicians do not belong to the Fund or do not contribute at their actual salaries. Unfortunately most technicians contribute at a fictitiously low salary which is much lower than their actual salary. In the long-term only the technician and his/her dependants will have to bare the consequences.
Assume a dental technician earns the current basic minimum salary of R6 000. If the technician contributes to the fund based on only R3 000 of the actual salary, then it means that your dependents will also receive benefits based on 50% of your actual salary in the event that you die. Disability benefits will also be calculated in line with the R3 000 salary and not the actual R6 000 salary. Important to note is that the same effect will apply at retirement.
According to the regulations of the Dental Technicians Act the pension fund contribution is a compulsory monthly contribution of 7% of 1/12 of an employee’s pensionable annual salary (gross earnings as stated on employee PAYE certificate) and shall be deducted by an employer and paid to the South African Dental Technician Employees Pension Fund. The employer shall also contribute an amount equal to the employee’s monthly contribution to the Fund. This adds up to a 14% contribution of the employee’s salary to the Fund. Of this 14 %, approximately 4 % is deducted to cover the cost of the operations, death benefits and disability benefits.
Therefore, approximately 10 % of your salary is allocated towards savings on which you will receive the full investment growth. The investments of the Fund are well managed and produce market-related returns.
Many employees, however, are not members of the South African Dental Technician Employees Pension Fund despite being compulsory in terms of current legislation. Apart from the fact that such an omission is illegal, it could lead to a financial claim against the employer in the event of such an employee dying or becoming disabled.
It is time that all parties in our profession realize the importance of contributing to the SA Dental Technicians Employees Pension Fund and that it is only in your best interest to reflect your actual salary as well as to become a member of the Fund.
Douw Grobler
Trustee
Tel: 012-460 1155 Fax: 012-460 9481 Mon-Fri 08:00-13:00 
The Dental Technology Association of South Africa