‘benefit’ in relation to an employee that is a member of a pension fund, provident fund or retirement annuity fund, means any amount payable to that member or a dependant or nominee of that member by that fund in terms of the rules of the fund;

‘contribution certificate’ means the certificate contemplated in subparagraph (4);

‘defined benefit component’ means a benefit or part of a benefit receivable from a pension fund, provident fund or retirement annuity fund by a member of that fund or a dependant or nominee of that member other than a defined contribution component or underpin component of a fund;

‘defined contribution component’ means a benefit or part of a benefit receivable from a pension fund, provident fund or retirement annuity fund-

(a)     where the interest of each member in the fund in respect of that benefit has a value equal to the value of-

(i)      the contributions paid by the member and by the employer in terms of the rules of the fund that determine the rates of both their contributions at a fixed rate;

(ii)     less such expenses as the board of that fund determines should be deducted from the contributions paid;

(iii)    plus any amount credited to the member’s individual account upon-

(A)    the commencement of the member’s membership of the fund;

(B)    the conversion of the component of the fund to which the member belongs from a defined benefit component to a defined contribution component; or

(C)    the amalgamation of that fund with any other fund, if any, other than amounts taken into account in terms of subparagraph (iv);

(iv)    plus any other amounts lawfully permitted, credited to or debited from the member’s individual account, if any,

as increased or decreased by fund return; or

(b)     which consists of a risk benefit provided by the fund directly or indirectly for the benefit of a member of the fund if the risk benefit is provided by means of a policy of insurance or a risk benefit policy;

[Paragraph (b) substituted by section 43(1)(a) of Act 20 of 2021 effective on 1 March, 2022 and applicable in respect of years of assessment commencing on or after that date]

‘fund member category’ in relation to members of a pension fund, provident fund or retirement annuity fund, means any group of members in respect of whom, in terms of the rules of the fund-

(a)     the employers of those members and those members must respectively make a contribution to that fund in an amount in respect of retirement funding income at the same fixed rate; and

(b)     the determination of the value of the benefits of the members referred to in paragraph (a) and the determination of the entitlement of those members to those benefits are made according to the same method;

‘fund member category factor’ means the fund member category factor contemplated in subparagraph (5)(a);

[Definition of “fund member category factor” substituted by section 69 of Act 17 of 2017 effective on 1 March 2016]

‘fund return’, in relation to-

(a)     the assets of a fund, means any income (received or accrued) and capital gains and losses (realised or unrealised) earned on the assets of the fund, net of expenses and tax charges, associated with the acquisition, holding or disposal of assets; or

(b)     any portion of the assets of a fund if the assets are separately identifiable, means any income (received or accrued) and capital gains and losses (realised or unrealised) earned on those assets, net of expenses and tax charges associated with the acquisition, holding or disposal of assets; or

(c)     the assets of a fund, to the extent that those assets consist of long-term policies which are “fund member policies” as defined in Part 5 of the Regulations under the Long-term Insurance Act means the “growth rate” (as defined in those Regulations) applicable to those policies, as determined in accordance with those Regulations;

‘member’ means in relation to a pension, provident or retirement annuity fund, any member or former member of that fund but does not include any member or former member or person who has received all the benefits which may be due to them from the fund and whose membership has thereafter been terminated in accordance with rules of the fund;

‘retirement-funding income’ means-

(a)     in relation to any employee or the holder of an office (including a member of a body of persons whether or not established by or in terms of any law) who in respect of his or her employment derives any income constituting remuneration as defined in paragraph 1 of the Fourth Schedule and who is a member of or, as an employee, contributes to a pension fund or provident fund established for the benefit of employees of the employer, from whom such income is derived, the income that is taken into account in the determination of the contributions made by the employer or the pension fund or provident fund for the benefit of the employee to such pension fund or provident fund in terms of the rules of the fund; or

[Paragraph (a) substituted by section 69(a) of Act 15 of 2016 effective on 1 March 2016, applies in respect contributions made on or after that date, and section 69(b) of Act 15 of 2016 effective on 1 March 2017, applies in respect contributions made on or after that date]

(b)     in relation to a partner in a partnership (other than a partner contemplated in paragraph (a)) that part of the partner’s income from the partnership in the form of the partner’s share of profits as is taken into account in the determination of the contributions made by the partnership for the benefit of the partner to a pension fund or provident fund in terms of the rules of the fund: Provided that for the purposes of this definition a partner in a partnership must be deemed to be an employee of the partnership and a partnership must be deemed to be the employer of the partners in that partnership;