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"pension fund"

means—

(a)        

(i) any pension, provident or dependants' fund or pension scheme established by law, other than the Government Employees Pension Fund, as contemplated in the Government Employees Pension Law, 1996 (Proclamation No. 21 of 1996);

[Paragraph (a)(i) substituted by section 3(1)(k) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

(ii) any pension or dependant’s fund or pension scheme established for the benefit of the employees of any municipality or of any local authority (as defined in the definition of "local authority" in this section prior to the coming into operation of section 3(1)(h) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006), that was established prior to the date that section so came into operation); or

[Paragraph (a)(ii) substituted by section 3(1)(l) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2019]

(iii) any fund contemplated in subparagraph (ii), which includes as members employees of any municipal entity created in accordance with the provisions of the Municipal Systems Act, 2000 (Act No. 32 of 2000), over which one or more municipalities or local authorities as defined in section 1 prior to the coming into operation of section 3(1)(h) of the Revenue Laws Amendment Act, 2006, and that was established prior to the date that section so came into operation) exercise ownership control as contemplated by that Act, where such fund was established –
(aa) on or before 14 November 2000, and such employees were employees of a local authority (as defined in section 1 prior to the coming into operation of section 3(1)(h) of the Revenue Laws Amendment Act, 2006, and that was established prior to the date that section so came into operation) immediately prior to becoming employees of such municipal entity; or

[Paragraph (a)(iii)(aa) substituted by section 3(1)(m) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

(bb) after 14 November 2000, and such fund has been approved by the Commissioner subject to such limitations, conditions and requirements as contemplated in paragraph (c);

[Paragraph (a)(iii)(bb) substituted by section 3(1)(l) of the Revenue Laws Amendment Act, 2006 (Act No. 20 of 2006)]

[Paragraph (a) substituted by section 3(b) of Act No. 19 of 2001]

(b) with effect from a date determined by the Commissioner in relation to any fund hereinafter referred to (not being a date earlier than 4 December 1981), any pension fund established for the benefit of employees of a control board as defined in section 1 of the Marketing of Agricultural Products Act, 1996 (Act No. 47 of 1996), or for the benefit of employees of the Development Bank of Southern Africa, if the rules of such fund are in all material respects identical to those of the Government Employees' Pension Fund; or

[Paragraph (b) amended by section 3(1)(m) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective 1 March 2016]

(c) the Municipal Councillors Pension Fund provisionally registered under the Pension Funds Act on 23 May 1988, or any fund (other than a retirement annuity fund , a pension preservation fund or a fund contemplated in paragraph (a) or (b)) 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 that Act:

Provided that the Commissioner may approve a fund subject to such limitations or conditions as he may determine, and shall not approve a fund in respect of any year of assessment unless he is in respect of that year of assessment satisfied—

(i) that the fund is a permanent fund bona fide established for the purpose of providing annuities for employees on retirement date or for the dependants or nominees of deceased employees, or mainly for the said purpose and also for the purpose of providing benefits other than annuities for the persons aforesaid or for the purpose of providing any benefit contemplated in paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and

[Paragraph (c)(i) amended by section 2(1)(f) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018 ]

(ii) that the rules of the fund provide—
(aa) that all annual contributions of a recurrent nature to the fund shall be in accordance with specified scales;
(bb) that membership of the fund throughout the period of employment shall be a condition of the employment by the employer of all persons of the class or classes specified therein who enter his employment on or after the date upon which—
(A) the fund comes into operation; or
(B) the employer becomes a participant in that fund;

[Paragraph (c)(ii)(bb) substituted by section 7(1)(z) of the Taxation Laws Amendment Act, 2011 (Act No. 24 of 2011)]

(cc) that persons who immediately prior to the said date were employed by the employer and who on the said date fall within the said class or classes may, on application made, be permitted to become members of the fund on such conditions as may be specified in the rules;

[Paragraph (c)(ii)(cc) substituted by section 2(1)(g) of the Taxation Laws Amendment Act, 2017 (Act No. 17 of 2017) - effective 1 March 2018]

(dd) 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 paid in the form of an annuity (including a living annuity) except where two-thirds of the total value does not exceed R165 000, where the employee is deceased or where the employee elects to transfer the retirement interest to a pension preservation fund or a retirement annuity fund;

[Paragraph (c)(ii)(dd) substituted by section 1(1)(k) of the Taxation Laws Amendment Act, 2018 (Act No. 23 of 2018), GG 42172, dated 17 January 2019 - effective 1 January 2019 (section 1(2)]

(ee) that a partner of a partnership is regarded as an employee of the partnership; and

[Paragraph (c)(ii)(ee) substituted by section 2(1)(t) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]

(ff) that the Commissioner shall be notified of all amendments of the rules; and
(gg) [Paragraph (c)(ii)(gg) deleted by section 2(1)(u) of the Taxation Laws Amendment Act, 2008 (Act No. 3 of 2008)]
(iii) that the rules of the fund have been complied with:

Provided further that a fund contemplated in paragraph (i) of the further proviso to the definition of ‘pension preservation fund’ which is deemed to be approved or which is approved in terms of that definition or which fails to submit its rules as required by that paragraph is deemed with effect from the earlier of the date of the deemed approval or 30 September 2010 to be a fund which is not approved in terms of this definition;

(d) the Government Employees Pension Fund, as contemplated in the Government Employees Pension Law, 1996

[Paragraph (d) substituted by section 3(1)(o) of the Taxation Laws Amendment Act, 2015 (Act No. 25 of 2015) - effective from 1 March 2019]

Provided that in respect of any fund contemplated in paragraph (a) or (b)—

(a) the fund is a permanent fund bona fide established for the purpose of providing annuities for employees on retirement date or for the dependants or nominees of deceased employees, or mainly for the said purpose and also for the purpose of providing benefits other than annuities for the persons aforesaid or for the purpose of providing any benefit contemplated in paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and
(b) the rules of the fund provide—
(i) that all annual contributions of a recurrent nature to the fund shall be in accordance with specified scales;
(ii) that membership of the fund throughout the period of employment shall be a condition of the employment by the employer of all persons of the class or classes specified therein who enter his employment on or after the date upon which—
(aa) the fund comes into operation; or
(bb) the employer becomes a participant in that fund;
(iii) 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 paid in the form of an annuity (including a living annuity) except where two-thirds of the total value does not exceed R165 000 or where the employee is deceased: Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account:
(aa) in the case of a person who is a member of a provident fund and who is 55 years of age or older on 1 March 2019—
(A) any amount contributed to a provident fund of which that person is a member on 1 March 2019;
(B) with addition of any other amounts credited to the member’s individual account of the provident fund prior to 1 March 2019; and
(C) any fund return, as defined in the Pension Funds Act, in relation to the contributions contemplated in subitem (A) or amounts credited contemplated in subitem (B); or
(bb) in any other case of a person who is a member of a provident fund—
(A) any amount contributed to a provident fund prior to 1 March 2019;
(B) with addition of any other amounts credited to the member’s individual account of the provident fund prior to 1 March 2019; and
(C) any fund return, as defined in the Pension Funds Act, in relation to the contributions contemplated in subitem (A) or amounts credited contemplated in subitem (B), reduced by any amounts permitted in terms of any law to be deducted from the member’s individual account of the provident fund;
(iv) that a partner is regarded as an employee of the partnership; and
(c) that the rules of the fund have been complied with;