“prescribed” means prescribed or deemed to be prescribed by or under this Act;

“provident fund” means—

(a)     any provident fund established by law;

(b)     any provident fund 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 20 of 2006), that was established prior to the date that section so came into operation); or

(c)     any fund contemplated in subparagraph (b), which includes as members employees of any municipal entity created in accordance with the provisions of the Municipal Systems Act, 2000 (Act 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

(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) of the definition of “provident fund”; and

(d)     any fund (other than a pension fund, pension preservation fund, provident preservation fund, benefit fund or retirement annuity 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:

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 solely for the purpose of providing benefits for employees on retirement date or solely for the purpose of providing annuities for the dependants or nominees of deceased employees or deceased former employees or solely for a combination of such purposes 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 the definition of “savings withdrawal benefit”, paragraph 2C of the Second Schedule or section 15A or 15E of the Pension Funds Act; and

[Paragraph (i)(previously paragraph (a)) substituted by section 2(f) of Act 21 of 1995, by section 4(1)(s) of Act 60 of 2008, by section 4(1)(zN) of Act 31 of 2013(section 4(1)(zO) of Act 31 of 2013 deleted by section 143(1)(a) of Act 25 of 2015), by section 2(1)(h) of Act 17 of 2017 effective on 1 March, 2018 and applicable in respect of years of assessment commencing on or after that date and by section 1(1)(c) of Act 2 of 2016(as substituted by section 75(1) of Act 23 of 2020) effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date (effective date in section 1(2) of Act 2 of 2016 substituted by section 97(1)(b) of Act 17 of 2017 and by section 110(1)(b) of Act 23 of 2018) and by section 1(1)(p) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(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 the employment of the employer on or after the date upon which-

(a)    the fund comes into operation; or

(b)    the employer becomes a participant in that fund;

(cc)   that person 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;

(dd)   that not more than one-third of the portion of the retirement interest that exists in an employee’s interest may be commuted for a single payment, and that the remainder calculated together with the employee’s interest in the retirement component must be paid in the form of an annuity (including a living annuity), a combination of annuities (including a combination of methods of paying the annuity) or a combination of types of annuities except where two-thirds of the employee’s retirement interest in the vested component, calculated together with the employee’s interest in the retirement component, 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, provident preservation fund or a retirement annuity fund: Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account-

(a)     in the case of a person who is or was a member of a provident fund or provident preservation fund and who is or was 55 years of age or older on 1 March 2021-

(AA)  any amount contributed to a provident fund or transferred to provident preservation fund prior to, on and after 1 March 2021 of which that person is or was a member on 1 March 2021;

(BB)  with the addition of any other amount credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021; and

(CC)  any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (AA) or amounts credited contemplated in subparagraph (BB);

[Subparagraph (CC) substituted by section 1(1)(h) of Act 17 of 2023 effective on 1 March, 2022 and is applicable in respect of years of assessment commencing on or after that date]

(b)     in any other case of a person who is or was a member of a provident fund or provident preservation fund on 1 March 2021-

(AA)  any amount contributed to a provident fund or transferred to a provident preservation fund prior to 1 March 2021;

(BB)  with the addition of any other amounts credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund as a result of the value of the member’s individual account or minimum individual reserve on 1 March 2021; and

(CC)  any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (AA) or amounts credited contemplated in subparagraph (BB);

[Subparagraph (CC) substituted by section 1(1)(i) of Act 17 of 2023 effective on 1 March, 2022 and is applicable in respect of years of assessment commencing on or after that date]

reduced proportionally by an amount permitted in terms of the Pension Funds Act to be deducted from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021: Provided further that in the case where the remaining balance is utilised to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000;

[Subparagraph (dd) substituted by section 4(1)(i) of Act 20 of 2021 and amended by section 1(1)(q) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(ee)   that the employee may elect to transfer the withdrawal interest to a pension fund established by the same employer or a pension fund in which that employer participates;

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

(gg)   that an employee who has transferred a retirement interest in terms of paragraphs 2(1)(c) and 6A(d) of the Second Schedule to this fund shall not be entitled to payment of a withdrawal benefit as contemplated in paragraph 2(1)(b)(ii) of the Second Schedule in respect of that transferred amount; and

[Subparagraph (gg) added by section 1(1)(j) of Act 17 of 2023 with effect from 1 March, 2024 and applicable in respect of years of assessment commencing on or after that date]

[Paragraph (ii) (previously paragraph (b)) substituted by section 2(1)(f) of Act 94 of 1983 and by section 1(1)(p) of Act 23 of 2018, amended by section 1(1)(q) of Act 23 of 2018 and substituted by section 2(1)(e) of Act 34 of 2019 and by section 1(1)(c) of Act 2 of 2016, as substituted by section 97(1)(a) of Act 17 of 2017, by section 110(1)(a) of Act 23 of 2018 and by section 75(1) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

(iii)     that the rules of the fund have been complied with:

[Paragraph (iii) (previously paragraph (c)) substituted by section 1(1)(c) of Act 2 of 2016 and substituted by section 97(1)(a) of Act 17 of 2017, by section 110(1)(a) of Act 23 of 2018 and by section 75(1) of Act 23 of 2020 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

Provided further that a fund contemplated in paragraph (i) of the further proviso to the definition of “provident 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 effective on 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: Provided further that the Commissioner may recognise a fund contemplated in paragraph (a), (b) or (c) in respect of any year of assessment if the Commissioner is satisfied that the rules of the fund provide that in determining the value of retirement interest an amount calculated as follows must not be taken into account-

(i)      in the case of a person who was a member of a provident fund or a provident preservation fund and who was 55 years of age or older on 1 March 2021-

(aa)   any amount contributed to a provident fund or transferred to a provident preservation fund prior to, on or after 1 March 2021 of which that person was a member on 1 March 2021;

(bb)   with the addition of any other amounts credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on or after 1 March 2021; and

(cc)   where applicable, any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (aa) or amounts credited contemplated in subparagraph (bb); or

(ii)     in any other case of a person who was a member of a provident fund or a provident preservation fund on 1 March 2021-

(aa)  any amount contributed to a provident fund or transferred to a provident preservation fund prior to 1 March 2021;

(bb)   with the addition of any other amounts credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund as a result of the value of the member’s individual account or minimum individual reserve on 1 March 2021; and

(cc)   where applicable, any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (aa) or amounts credited contemplated in subparagraph (bb),

where applicable, reduced proportionally by any amount permitted to be deducted in terms of the Pension Funds Act from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on or after 1 March 2021;

Provided further that the Commissioner may approve or recognise a fund contemplated in-

(i)      paragraph (a), (b), (c) or (d) in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide—

(aa)   for the creation of the “savings component”, “retirement component” and “vested component” as defined in section 1;

(bb)   that an employee shall, prior to his or her retirement date, be entitled to the payment of an amount from the retirement component, deemed to be paid as a lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule, where a member—

(AA)  is a person who is not a resident for an uninterrupted period of three years or longer on or after 1 March 2021; or

(BB)  departed from the Republic at the expiry of a visa obtained for the purposes of-

(AAA) working as contemplated in paragraph (i) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002); or

(BBB) a visit as contemplated in paragraph (b) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002), issued in terms of paragraph (b) of the proviso to section 11 of the Act by the Director-General, as defined in that Act; or

(ii)     paragraph (a), (b) or (c) in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide that not more than one-third of an employee’s interest in the vested component may be commuted for a single payment and that the remainder, calculated together with the member’s interest in the retirement component, must be paid in the form of an annuity (including a living annuity), a combination of annuities (including a combination of methods of paying the annuity) or a combination of types of annuities except where two-thirds of the employee’s interest in the vested component, calculated together with the employee’s interest in the retirement component, 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, provident fund or retirement annuity fund;

[Definition of “provident fund” amended by section 2(1)(d) of Act 65 of 1986, by section 4(1)(r) and (t) of Act 60 of 2008, by section 6(1)(z) of Act 7 of 2010, by section 4(1)(zM) of Act 31 of 2013, by section 3(1)(u) of Act 25 of 2015(as substituted by section 74(1)(d) of Act 23 of 2020), by section 1(1)(j) of Act 20 of 2022 and by section 1(1)(r) of Act 12 of 2024effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

“provident preservation fund” means a pension fund organisation which is registered under the Pension Funds Act and which is approved by the Commissioner in respect of the year of assessment in question : Provided that the Commissioner may approve a fund subject to such limitations and conditions as the Commissioner may determine, and shall not approve a fund in respect of any year of assessment unless the Commissioner is satisfied in respect of that year of assessment that the rules of the fund provide that-

(a)     membership of the fund consists of-

(i)      former members of any other pension fund, pension preservation fund, provident fund or provident preservation fund whose membership of that fund has terminated due to-

(aa)   resignation, retrenchment or dismissal from employment and who elected to have any lump sum benefit that is payable as a result of the termination transferred to that fund, including lump sums transferred from the member’s vested component, savings component and retirement component in the previous fund to the member’s savings component and retirement component in this fund;

[Item (aa) substituted by section 1(1)(s) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(bb)   the winding up or partial winding up of that fund, if the members elected or are required in terms of the rules to transfer to this fund; or

(cc)   a transfer of business from one employer to another in terms of section 197 of the Labour Relations Act, 1995 (Act No. 66 of 1995), and the employment of the employee with the transferor employer is transferred to the transferee employer, if the members elected or are required in terms of the rules to transfer to this fund;

[Sub-paragraph (i) amended by section 3(1)(w) of Act 25 of 2015 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date – effective date in section 3(7) of Act 25 of 2015 substituted by section 3(1)(b) of Act 2 of 2016 as substituted by section 98(1) of Act 17 of 2017 and by section 111(1) of Act 23 of 2018]

(ii)     former members of any other pension fund, pension preservation fund, provident fund or provident preservation fund-

(aa)    if that fund was wound up or partially wound up; or

(bb)   if the member elected to have any lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule transferred to this pension preservation fund and who made this election while they were members of that other fund, including lump sums transferred from the member’s vested component, savings component and retirement component in the previous fund to the member’s savings component and retirement component in this fund; or

[Item (bb) substituted by section 7(1)(w) of Act 17 of 2009 and by section 1(1)(t) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

 [Subparagraph (ii) amended by section 3(1)(x) of Act 25 of 2015 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date (effective date in section 3(7) of Act 25 of 2015 substituted by section 3(1)(b) of Act 2 of 2016 as substituted by section 98(1) of Act 17 of 2017 and by section 111(1) of Act 23 of 2018)

(iii)     . . . . . .

[Sub-paragraph (iii) substituted by section 7(1)(zF) of Act 24 of 2011, by section 4(1)(zQ) of Act 31 of 2013 and by section 1(1)(r) of Act 23 of 2018 and deleted by section 2(1)(k) of Act 23 of 2020 effective on 1 March, 2021]

(iv)    a person who has elected to transfer an amount awarded to that person in terms of a court order contemplated in section 7(8) of the Divorce Act, 1979 (Act 70 of 1979), from a pension fund, pension preservation fund, provident fund or provident preservation fund for the benefit of that person;

[Sub-paragraph (iv) amended by section 1(1)(r) of Act 23 of 2018 and substituted by section 2(1)(l) of Act 23 of 2020 effective on 1 March, 2021]

(v)     former members of a pension fund, pension preservation fund, provident fund or provident preservation fund who have elected to have a lump sum benefit contemplated in paragraph 2(1)(c) of the Second Schedule transferred to this provident preservation fund and who made the election while they were members of that other fund, including lump sums transferred from the member’s vested component, savings component and retirement component in the previous fund to the member’s savings component and retirement component in this fund; or

[Subparagraph (v) added by section 1(1)(r) of Act 23 of 2018 and substituted by section 2(1)(l) of Act 23 of 2020, by section 4(1)(j) of Act 20 of 2021 and by section 1(1)(u) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(vi)    former members of a pension fund, pension preservation fund, provident fund or provident preservation fund or nominees or dependants of that former member in respect of whom an “unclaimed benefit” as defined in section 1 of the Pension Funds Act and as contemplated in section 37C(1)(c) of the said Act is due or payable by that fund;

[Subparagraph (vi) added by section 2(1)(m) of Act 23 of 2020 and substituted by section 1(1)(k) of Act 20 of 2022]

(b)     payments or transfers to the fund in respect of a member are limited to any amount allocated to the vested component, savings component or retirement component or an amount contemplated in paragraph 2(1)(a)(ii), (b) or (c) of the Second Schedule or any unclaimed benefit as defined in the Pension Funds Act that is paid or transferred to the fund by-

[Words preceding subparagraph (i) substituted by section 7 of Act 24 of 2011, section 4(1)(zR) of Act 31 of 2013 and section 1(1)(s) of Act 23 of 2018 effective on 1 March 2019]

(i)      a pension fund, pension preservation fund, provident fund or provident preservation fund of which that member was previously a member; or

[Sub-paragraph (i) substituted by section 3(1)(y) of Act 25 of 2015 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date – effective date in section 3(7) of Act 25 of 2015 substituted by section 3(1)(b) of Act 2 of 2016 as substituted by section 98(1) of Act 17 of 2017 and by section 111(1) of Act 23 of 2018]

(ii)     a pension fund, pension preservation fund, provident fund or provident preservation fund of which such member’s former spouse is or was previously a member and such payment or transfer was made pursuant to an election by such member in terms of section 37D(4)(b)(ii) of the Pension Funds Act;

[Sub-paragraph (ii) substituted by section 7(1)(y) of Act 17 of 2009, by section 4(1)(zS) of Act 31 of 2013 and by section 2(1)(j) of Act 23 of 2020 effective on 1 March, 2021]

[Paragraph (b) substituted by section 4(1)(u) of Act 60 of 2008 and amended by section 7(1)(x) of Act 17 of 2009, by section 7(1)(zG) of Act 24 of 2011, by section 4(1)(zR) of Act 31 of 2013, by section 1(1)(s) of Act 23 of 2018 and by section 1(1)(v) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(c)     with the exception of amounts transferred to any pension fund, pension preservation fund, other provident fund, provident preservation fund or retirement annuity fund, not more than one amount contemplated in paragraph 2(1)(b)(ii) of the Second Schedule is allowed to be paid to the member during the period of membership of the fund or any other pension preservation fund: Provided that this paragraph applies separately to each payment or transfer to the fund contemplated in paragraph (b): : Provided that-

(i)      this paragraph applies separately to each payment or transfer to the vested component or an amount contemplated in paragraph 2(1)(a)(ii), (b) or (c) of the Second Schedule or any “unclaimed benefit” as defined in the Pension Funds Act that is paid or transferred to the fund;

[Subparagraph (i) substituted by section 1(1)(w) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(ii)     a member shall, prior to his or her retirement date, be entitled to the payment of-

(aa)   a lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule where a member-

(a)     is a person who is or was a resident who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control in respect of applications for that recognition received on or before 28 February 2021 and approved by the South African Reserve Bank or an authorised dealer in foreign exchange for the delivery of the currency on or before 28 February 2022;

(b)     is a person who is not resident for an uninterrupted period of three years or longer on or after 1 March 2021; or

(c)     departed from the Republic at the expiry of a visa obtained for the purposes of-

(AA)  working as contemplated in paragraph (i) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002); or

(BB)  a visit as contemplated in paragraph (b) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002), issued in terms of paragraph (b) of the proviso to section 11 of the Act by the Director-General, as defined in that Act;

(bb)   an amount from the retirement component or vested component, deemed to be paid as a lump sum benefit contemplated in paragraph 2(1)(b)(ii) of the Second Schedule, where a member-

(A)    is a person who is not a resident for an uninterrupted period of three years or longer on or after 1 March 2021; or

(B)    departed from the Republic at the expiry of a visa obtained for the purposes of-

(AA)  working as contemplated in paragraph (i) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002); or

(BB)  a visit as contemplated in paragraph (b) of the definition of “visa” in section 1 of the Immigration Act, 2002 (Act 13 of 2002), issued in terms of paragraph (b) of the proviso to section 11 of the Act by the Director-General, as defined in that Act; or

(C)    is a person who is or was a resident who emigrated from the Republic and that emigration is recognised by the South African Reserve Bank for purposes of exchange control in respect of application for that recognition received on or before 28 February 2021 and approved by the South African Reserve Bank or an authorised dealer in foreign exchange for the delivery of currency on or before 28 February 2022; and

[Subparagraph (ii) amended by section 2(1)(n) of Act 23 of 2020 and substituted by section 1(1)(x) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

(iii)    a member who has transferred a retirement interest in terms of paragraph 2(1)(c) of the Second Schedule to this fund shall not be entitled to payment of a withdrawal benefit as contemplated in paragraph 2(1)(b)(ii) of the Second Schedule in respect of that transferred amount, except to the extent that it is an amount contemplated in subparagraph (ii) or a savings withdrawal benefit; and

[Subparagraph (iii) substituted by section 1(1)(y) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

[Paragraph (c) substituted by section 4(1)(u) of Act 60 of 2008, by section 7(1)(z) of Act 17 of 2009, amended by section 2(1)(u) of Act 22 of 2012(section 4(1)(zT) of Act 31 of 2013 deleted by section 143(1)(a) of Act 25 of 2015) and by section 1(1)(t) of Act 23 of 2018 effective on 1 March, 2019]

(d)     a member, other than a member contemplated in paragraph (a)(vi) of this proviso, will become entitled to a benefit on his or her retirement date:

[Paragraph (d) substituted by section 1(1)(k) of Act 17 of 2023 effective on 1 March, 2021 and applicable in respect of years of assessment commencing on or after that date]

(e)     not more than one-third of the portion of the member’s interest in the vested component immediately prior to 1 September 2024 may be commuted for a single payment, and that the remainder, calculated together with the member’s interest in the retirement component, must be paid in the form of an annuity (including a living annuity), a combination of annuities (including a combination of methods of paying the annuity) or a combination of types of annuities except where two-thirds of the member’s total interest in their vested component, calculated together with the member’s total interest in their retirement component, does not exceed R165 000, where the member is deceased or where the member elects to transfer the retirement interest to a pension preservation fund, a provident preservation fund or a retirement annuity fund: Provided that in determining the value of the retirement interest an amount calculated as follows must not be taken into account:

(a)     in the case of a person who is or was a member of a provident fund or provident preservation fund and who is or was 55 years of age or older on 1 March 2021—

(i)      any amount contributed to a provident fund or transferred to a provident preservation fund prior to, on and after 1 March 2021 of which that person is or was a member on 1 March 2021;

(ii)     with the addition of any other amount credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021; and

(iii)     any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (i) or amounts credited contemplated in subparagraph (ii);

(b)     in any other case of a person who is or was a member of a provident fund or provident preservation fund on 1 March 2021-

(i)      any amount contributed to a provident fund or transferred to a provident preservation fund prior to 1 March 2021;

(ii)     with the addition of any other amounts credited to the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund as a result of the value of the member’s individual account or minimum individual reserve on 1 March 2021; and

(iii)     any fund return, as defined in the Pension Funds Act, in relation to the contributions or transfers contemplated in subparagraph (i) or amounts credited contemplated in subparagraph (ii),

reduced proportionally by an amount permitted in terms of the Pension Funds Act to be deducted from the member’s individual account or minimum individual reserve of the provident fund or provident preservation fund prior to, on and after 1 March 2021: Provided further that in the case where the remaining balance is utilized to provide or purchase more than one annuity, the amount utilised to provide or purchase each annuity must exceed R165 000:

[Paragraph (e) (Addition by section 4(1)(zV) of Act 31 of 2013 substituted by section 119(1)(c) of Act 43 of 2014 and deleted by section 143(1)(a) and by section 155(1) of Act 25 of 2015 respectively and amendment by section 3(1)(z) of Act 25 of 2015 deleted by section 3(1)(a) of Act 2 of 2016) substituted by section 1(1)(d) of Act 2 of 2016(as substituted by section 97(1)(a) of Act 17 of 2017, by section 110(1)(a) of Act 23 of 2018 and by section 75(1) of Act 23 of 2020) and by section 4(1)(k) of Act 20 of 2021 and amended by section 1(1)(l) of Act 17 of 2023 and by section 1(1)(z) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

: Provided further that-

(i)      the rules of a provident fund that is doing the business of a preservation fund as prescribed by the Commissioner from time to time must be submitted to the Commissioner for approval in terms of the provisions of this definition before 30 September 2010; and

(ii)     the rules of the provident fund contemplated in paragraph (i) that are submitted before 30 September 2010 are deemed to have been approved under this definition with effect from the date that the rules are submitted until the date that the Commissioner notifies the fund of its status under this definition:

Provided further that the Commissioner may approve a fund in respect of any year of assessment, if the Commissioner is satisfied that the rules of the fund provide for the creation of the “savings component”, “retirement component” and “vested component” as defined in section 1;

[Definition of “provident preservation fund” inserted by section 2(1)(w) of Act 3 of 2008 and amended by section 4(1)(v) of Act 60 of 2008, by section 6(1)(zC) of Act 7 of 2010 and by section 4(1)(zP) of Act 31 of 2013 and by section 1(1)(zA) of Act 12 of 2024 effective on 1 September, 2024 and applicable in respect of years of assessment commencing on or after that date]

“Public Finance Management Act” means the Public Finance Management Act, 1999 (Act No. 1 of 1999);

“Public Private Partnership” means a Public Private Partnership as defined in-

(a)     Regulation 16 of the Treasury Regulations issued in terms of section 76 of the Public Finance Management Act; or

(b)     the Municipal Public-Private Partnership Regulations made in terms of section 168 of the Local Government: Municipal Finance Management Act, 2003 (Act No. 56 of 2003);

[Definition of “Public Private Partnership” inserted by section 3 of Act 32 of 2004 and substituted by section 4 of Act 31 of 2013 and section 1 of Act 43 of 2014 effective on 20 January 2015]

“qualifying investor” means a member of a partnership or foreign partnership or a beneficiary of a trust if the liability of the member or beneficiary to any creditor of the partnership, trust or foreign partnership is limited to the amount that the member or beneficiary has contributed or undertaken to contribute to the partnership, trust or foreign partnership, unless that member or beneficiary-

(a)     participates in the effective management of the trade or business of the partnership, trust or foreign partnership;

(b)        has the authority to act on behalf of-

(i)         the partnership or foreign partnership;

(ii)        the members of the partnership or foreign partnership; or

(iii)       the trust; or

(c)     renders any services to or on behalf of the partnership, trust or foreign partnership;

“regulation” means a regulation in force under this Act;