Chapter III: Compensation Fund and Reserve Fund

15. Compensation fund

1) There is hereby established a fund to be known as the compensation fund.

2) The compensation fund shall consist of--

1. any moneys vested in the compensation fund in terms of subsection (3);
2. the assessments paid by employers in terms of this Act;
3. any amounts paid by employers to the Director-General in terms of this Act;
4. any penalties and fines imposed in terms of this Act other than by a court of law;
5. any interest on investments of the compensation fund and the reserve fund;
6. any amounts transferred from the reserve fund;
7. the Payments made to the Director-General in terms of section 88;
8. any other amounts to which the compensation fund may become entitled.

3)

1. The accident fund established by section 64 of the Workmen's Compensation Act shall, as from the commencement of this Act, cease to exist, and all amounts credited to the accident fund immediately before such commencement, shall as from such commencement vest in the compensation fund.
2. All liabilities and rights, existing as well as accruing, of the accident fund shall devolve upon the compensation fund as from the commencement of this Act.

16. Application of compensation fund

1) The compensation fund shall, subject to the provisions of this Act, be under the control of the Director-General and its moneys shall be applied by the Director-General to--

1. the payment of compensation, the cost of medical aid or other pecuniary benefits to or on behalf of or in respect of employees in terms of this Act where no other person is liable for such payment;
2. the maintenance of the reserve fund;
3. the payment of expenses incurred in or in connection with the performance of his functions in terms of section 4(2);
4. the reimbursement of the National Revenue Fund in respect of remuneration paid in terms of section 2(2);
5. the payment of the prescribed remuneration and travelling and subsistence allowances to assessors;
6. the payment of the cost of or in connection with the medical examination of employees;
7. the payment of witness fees in terms of section 6(6);
8. the payment of any other expenditure incurred by the Director-General in the performance of his functions in terms of this Act.

2) The Director-General may transfer any surplus in the compensation fund to the reserve fund.

17. Valuation of compensation fund

1) The assets and liabilities of the compensation fund shall from time to time, as the Director-General may consider necessary, but in any event at intervals of not more than three years, be valued by an actuary appointed by the Minister to determine the sufficiency of the fund.

2) The result of the valuation referred to in subsection (1) shall be included in the next annual report of the Director-General succeeding the completion of the valuation.

18. Accounting

1) The Director-General shall receive all money payable to or for the benefit of the compensation fund in terms of this Act, and shall be charged with the responsibility of accounting for all money received and the utilization thereof.

2) The Director-General may transfer any part of the moneys in the compensation fund and the reserve fund to the Public Debt Commissioners for investment.

19. Reserve fund

1) There is hereby established a fund to be known as the reserve fund, consisting of cash or investments or both.

2) The amount of the reserve fund shall be determined by the Director-General.

3) The objects of the reserve fund are--

1. to Provide for unforeseen demands on the compensation fund;
2. to stabilize the tariffs of assessment.

4) Payments out of the reserve fund shall take place on the authorization of the Director-General.

5) The reserve fund established in terms of section 66 of the Workmen's Compensation Act shall, as from the commencement of this Act, cease to exist, and all amounts credited to the said reserve fund immediately before such commencement shall as from such commencement vest in the reserve fund established by subsection (1).

20. Accounts and audit

1) The Director-General shall keep such accounts, including an account with a bank contemplated in the Banks Act, 1990 (Act No. 94 of 1990), and records as are necessary for the exercise of proper control over the compensation fund and the reserve fund, and shall prepare yearly balance sheets made up to the last day of the financial year, showing in all necessary detail the assets and liabilities and the revenue and expenditure of the funds.

2) The accounts of the said funds shall be audited by the Auditor-General, and the cost of such audit shall be paid out of the compensation fund.

3) The Director-General shall, as soon as possible after the completion of the balance sheets referred to in subsection (1), submit a copy thereof and a copy of the report referred to in section 4(1)(n) to the Minister, who shall table such copies in Parliament within 30 days after receipt thereof, if Parliament is in ordinary session or, if Parliament is not in ordinary session, within 30 days of the commencement of its next ensuing ordinary session.

21. Income of funds exempt from tax

The income of the compensation fund and the reserve fund, including income from any investments, shall be exempt from income tax.