CHAMBER OF MINES OF SA LONG SERVICE AWARD SCHEME: ADMINISTRATIVE PROCEDURES: EFFECTIVE DATE 1 JULY 2002

1. OBJECT OF SCHEME:

The object of the scheme is to regulate the payment of awards to category 3 to 8 employees in respect of service that is not pensionable in terms of the rules of the Mineworkers Provident Fund, the Mines 1970 Provident Fund, the Mines 1970 Pension Fund or any other pension or provident fund operated in the mining industry and approved by the Chamber of Mines for purposes of these rules.

2. ELIGIBILITY:

An employee or dependant may become eligible for an award in terms of any one of the following award qualifications:

· Attainment of age 55 whilst in service - with at least 120 months completed service.

· Attainment of age 55 where an employee was out of service for more than 12 months with at least 180 completed months service and where the employee was in service at any time after 1 January 1981, but who is no longer in the service of an employer

· Permanent incapacitation whilst in service - with at least 120 completed month's service.

· Death whilst in service - with at least 120 completed month's service.

· Death after 15 years service with at least 180 completed month's service, etc.

· Retrenchment - where the employee obtained the age of 50 years whilst in service - with at least 120 completed months service.

3. DETERMINATION OF ELIGIBLE SERVICE:

The amount awarded is based on that portion of aggregate service which is eligible service. Eligible service is calculated as each month's service excluding:

· period of service which is pensionable in terms of provident fund schemes, and

· Service in respect of which an award has already been paid.

4. RESPONSIBILITY FOR PROCESSING AND PAYMENT OF AWARDS

Employer responsibility:

If an employee in the service of an employer has or will become eligible for an award on the date of his discharge such employer shall be responsible for the processing of the award and for the payment of the award on or before that date.

Teba Ltd responsibility

If the employee is out of service and becomes eligible for an award, such employee may apply to the responsible (last) employer for an award, or to Teba Ltd. Teba will refer such application to the last employer for service verification 'purposes. Should the applicant qualify for an award (in tenns of the above qualifying criteria) Teba will process the claim. Teba will therafter invoice the employer. On receipt of the LSA benefit Teba will effect payment to the applicant at the office where the application was lodged.

Approximately 4000 exited mineworkers or the families of deceased mineworkers apply annually for LSA benefits at Teba offices.

5. PROCESSING AND PAYMENT OF AWARDS BY MEMBER MINES (Mineworkers in service):

Payment of Award:

On the date on which an employee becomes eligible for an award or as soon as possible thereafter, the responsible employer shall pay the total award to the employee or his dependants in a lump sum.

The processing procedure whereby the responsible employer pays the award is as follows:

· Employer identifies employee's eligible for an award.

· Employer obtains the applicant's record of service (including Provident Fund service), in order to determine the aggregate period of service.

· Employer determines whether the applicant may qualify for an award.

· Employer calculates and finalises the award and effect payment to the employee / family.

· A copy of the payment advice is forwarded to Teba (for recording onto the Teba LSA System).

4.2 Defunct Mines:

Teba Lid is responsible for paying that portion of the award where an employee completed service at a now defunct mine.