means any fund (other than a pension fund, provident fund or benefit fund) which is approved by the Commissioner in respect of the year of assessment in question and, in the case of any such fund established on or after 1 July 1986, is registered under the provisions of the Pension Funds Act, 1956 (Act No. 24of 1956): Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve any fund in respect of any year of assessment unless he is in respect of that year of assessment satisfied--
a) that the fund is a permanent fund bona fide established for the sole purpose of providing life annuities for the members of the fund or annuities for the dependants or nominees of deceased members; and
b) that the rules of the fund provide--
i) for contributions by the members, including contributions made by way of transfer of members' interests in approved pension funds, provident funds or other retirement annuity funds;
ii) that not more than one-third of the total value of the retirement interest may be commuted for a single payment and that the remainder must be taken in the form of an annuity (including a living annuity) except where two-thirds of the total value does not exceed R50 000 or where the member is deceased;
iii) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];
iv) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];
v) that no member shall become entitled to the payment of any annuity or lump sum benefit contemplated in paragraph 2(1)(a) of the Second Schedule prior to reaching normal retirement age;
vi) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)];
vii) [deleted by the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]
viii) Deleted by section 4 of Act 103 of 1976;
ix) Deleted by section 4 of Act 103 of 1976;
x) that a member who discontinues his or her contributions prior to his or her retirement date shall be entitled to—
aa) an annuity or a lump sum benefit contemplated in paragraph 2(1)(a) of the Second Schedule payable on that date;
bb) be reinstated as a full member under conditions prescribed in the rules of the fund;
cc) the payment of a lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule where that member’s interest in the fund is less than an amount determined by the Minister by notice in the Gazette; or
dd) the payment of a lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule where that member emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control;
xi) that upon the winding up of the fund a member’s withdrawal interest therein must—
aa) where the member received an annuity from the fund on the date upon which the fund is wound up, be used to purchase an annuity (including a living annuity) from any other fund; or
bb) in any other case, be paid for the member’s benefit into any other retirement annuity fund;
xii) that save--
aa) as is contemplated in sub-paragraph (ii);
bb) for the transfer of any member's total interest in any approved retirement annuity fund into another approved retirement annuity fund;
cc) for the benefit contemplated in subparagraph (x)(cc); or
dd) as is contemplated in Part V of the Policyholder Protection Rules promulgated in terms of section 62 of the Long-Term Insurance Act, 1998 (Act No. 52 of 1998); or
ee) for any deduction contemplated in paragraph 2(1)(b) of the Second Schedule,
no member's rights to benefits shall be capable of surrender, commutation or assignment or of being pledged as security for any loan;
xiii) that the Commissioner shall be notified of all amendments of the rules; and
c) that the rules of the fund have been complied with.