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
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
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