| (a) | Any person bound by this Agreement may apply for exemption. |
| (b) | The Bargaining Council has the authority to consider applications for exemptions and/or licenses issued for exemptions. |
| (c) | An employer who has obtained an exemption from the Fund shall be required to apply in writing, should he wish to rejoin the Fund at a later stage. |
| (d) | Exemptions and appeals shall be dealt with, within a period of 30 days of receipt of the exemption or appeal application. |
| 2. | Fundamental principles for consideration |
| 2.1 | All applications must be in writing and fully motivated and sent to the Regional Office of the Council for the area in which the applicant is located. |
| (a) | In scrutinising an application for exemption the Council will consider the views expressed by the employer and the workforce, together with any other representations received in relation to that application. |
| (b) | The employer must consult with the workforce, through a trade union representative or, where no trade union is involved, with the workforce itself, and must include the views expressed by the workforce in the application. The consultation must comply with the Pension Fund Act and Regulations in respect of communication. |
Where the views of the workforce differ from that of the employer,the reasons for the views expressed must be submitted with the application.
Where an agreement between the employer and the workforce is reached,the signed written agreement must accompany the application.
| (c) | The exemption shall not contain terms that would have an unreasonably detrimental effect on the fair, equitable and uniform application of this Agreement in the Industry. |
| (d) | An application for exemption shall not be considered if the contents of the application are covered by an arbitration award binding the applicant. |
| (e) | When considering the application the Council will refer the application to the Fund Actuary to scrutinize the application and make a recommendation to the Regional Committee and/or Independent Exemption Appeal Board. |
| (f) | The Fund Actuary shall apply the following criteria: |
| i. | The overall benefits package must be equal or better than the benefits provided for by the Engineering Industries Pension Fund; |
| ii. | The proportion of employer net contribution paid on withdrawal or retirement; |
| iii. | Cover for death and disability; |
| iv. | No waiting period for membership to the fund may be applied; |
| v. | The total contributions must be similar to those required in terms of Clause 1(4) of this agreement and the net allocation toward retirement benefits must be equal or better; |
| vi. | Compare investment in terms of: |
| a. | The benchmark for each fund being compared; |
| b. | The investment managers; |
| c. | The historical returns on investment for 1, 3, 5, and 10 years; and |
| d. | The investment fees charged by the respective investment managers. |
| (g) | The exemptions may be withdrawn only if: |
| i. | There is no-compliance with the conditions set out on the license; |
| ii. | Failure to file confirmation on an annual basis that the benefit package is still on the whole (based on the criteria set out in (2) above) not less favorable than the benefits of the Engineering Industries Pension Fund. |
| (a) | The Council shall issue to every person to whom exemption has been granted an exemption licence, setting out the following: |
| (i) | the full name of the person or enterprise concerned; |
| (ii) | the provisions of this Agreement from which the exemption has been granted; |
| (iii) | the conditions subject to which exemption is granted; |
| (iv) | the period of the exemption; |
| (v) | the date from which the exemption shall operate; and |
| (vi) | the area in which the exemption applies. |
| (b) | The Council shall ensure that— |
| (i) | all exemption licences issued are numbered consecutively; |
| (ii) | an original copy of each licence is retained by the Council; |
| (iii) | a copy of the exemption licence is sent to the applicant. |
| (c) | Unless otherwise specified in the licence of exemption, any exemption from this Agreement shall be valid only in the region of the Council in which the application was made. |
| (d) | Written reasons for the refusal to grant an exemption must be provided to the applicant of that exemption. |
| (a) | An independent body, referred to as the Independent Exemptions Appeal Board (the Board), is hereby appointed and shall consider any appeal against an exemption granted or refused by the Council, or a withdrawal of an exemption. |
| (b) | The Council Secretary will on receipt of an appeal against a decision to refuse the granting of an exemption submit it to the Independent Exemptions Appeal Board for consideration and finalisation. |
| (c) | In considering an appeal the Board shall consider the recommendations of the Council, any further submissions by the employer and the workforce or their respective employee organisations or trade unions and shall be bound to apply the criteria set out in clause 2 above and also any other representations received in relation to the application. |
| (d) | Should the appeal be granted a licence of exemption shall be issued in terms of sub-clause (4)(a) and (b) above. |
