“defined contribution component” means a benefit or part of a benefit receivable from a pension fund or provident 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 contri-butions 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,

other than amounts taken into account in terms of subparagraph (iv); and

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

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;

[Definition of “defined contribution component” amended by section 43(1)(a) of Act 20 of 2021 and substituted by section 33(c) of Act 42 of 2024]