‘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]