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Income Tax Act, 1962 (Act No. 58 of 1962)

Regulations

Regulations 2016

Regulations in terms of paragraph 12D(5)(a) of Seventh Schedule to the Income Tax Act, 1962, on Determination of Fund Member Category Factor

1. Definitions

 

 

In these Regulations, any word or expression to which a meaning has been assigned in the Income Tax Act, 1962 (Act No. 58 of 1962), bears the meaning so assigned, and—

 

"annuity accrual rate"

means, in relation to a period for which a certificate is issued, the annual increase in the annuity benefit of a defined benefit component—

(a) occurring as a result of fund membership during the period in respect of which the certificate is issued; and
(b) expressed as the average of a proportion of final salary (as defined in the rules of the fund) in respect of all members of a fund member category;

as if all those members would have qualified in terms of the rules of fund to a receive an annuity benefit upon retirement.

 

"annuity benefit"

means an annuity—

(a) payable by a fund on retirement in consequence of membership or past membership of that fund; and
(b) in respect of which a portion of the final salary (as defined in the rules of the fund) is utilised to calculate the amount of the benefit of the fund member;

 

"death benefit"

means a benefit payable in respect of the death of a member to that member, the estate of that member or to a dependant or nominee of that member.

 

"lump sum"

means a single amount—

(a) payable by the fund on retirement in consequence of membership or past membership of that fund to a member of that fund; and
(b) of which the value is calculated as constituting a portion of the final salary (as defined in the rules of the fund) of the fund member;

 

"lump sum accrual rate"

means in relation to a period for which a certificate is issued, the annual increase in the lump sum of a defined benefit component—

(a) occurring as a result of fund membership during the period in respect of which the certificate is issued; and
(b) expressed as the average of a proportion of final salary in respect of all members of a fund member category.