Many security firms believe that they may be entitled to an exemption from the Private Security Sector Provident Fund (PSSPF) when they join another pension or provident fund that provides similar or even better benefits to their employees. Nothing could be further from the truth.

Closer inspection of Sectoral Determination No 6 indicates that a prerequisite exist for any application for exemption being that the employer :-

• had an existing pension or provident fund, which was registered with the Registrar of Pension Funds, prior to publication of Government Notice No 306 of March 2001; or

• had, before the above date, consulted, in writing, with it’s employees to commence negotiations for the establishment of a pension or provident fund.

Employers that meet the above requirements may then apply to the Board of the PSSPF in writing for exemption from the PSSPF.

Applications must be fully motivated and must be accompanied by all relevant supporting data and financial information.

The management committee of the PSSPF will take all factors into consideration when considering an application for exemption, including but not limited to :

  1. Any special circumstances that exist
  2. Any precedent that may be set
  3. The interest of the industry as regards to unfair competition, collective bargaining, potential for labour unrest and increased employment
  4. The interest of employees as regards to exploitation, job preservation, sound conditions of employment, possible financial benefits, health and safety as well as the infringement of basic rights.
  5. The interest of the employer as regards to financial stability, impact of productivity, future relationships with the employee’s trade union, and operational requirements.

Compliance with the pre-requisites referred to above does NOT guarantee automatic exemption. The Management Committee has a discretion to grant such an exemption and will issue the employer with a certificate of exemption if it’s application was successful.

Sectoral Determination 6 determines that an application by an employer for exemption shall in no way whatsoever affect the employer’s obligations, nor his/her employees’ rights, with regard to the payment of all contributions and benefits in terms of the rules of PSSPF and/or his/her employees’ conditions of employment.

Employers who have applied for exemption, but have not received a certificate of exemption are strongly advised to continue paying their contributions to the PSSPF until they have received such a certificate.

Any dispDisputes in respect of the granting of exemptions shall be referred to the Department of Labour in terms of Section 50 of the Basic Conditions of Employment Act.