NATIONAL
TREASURY PROPOSED AMENDMENTS PENSION
FUNDS AMENDMENT BILL [B11-2007]
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1. On page 3,
in line 47, to omit "which has not been disallowed by the registrar or
amended in accordance with the requirements of the registrar, and" and to
substitute "which has been amended in accordance with the requirements of
the Registrar, or which has not been disallowed by the Registrar, and"
2. On page 3, from line 59, to omit "and the
contribution payable by members"
3. On page 4, in line 39, to omit "illegitimate
child" and to substitute "child born
out of wedlock”
4. On page 5, from line 51, to omit the definition of
"non-member spouse" and to substitute:
"non-member spouse" means, in relation to a member of a fund, a
person who is no longer the spouse of that member due to the dissolution or
confirmation of the dissolution of the relationship by court order and to whom
the court ordering or confirming the dissolution of the relationship has
granted a share of the member's pension interest in the fund;
5. On page 6, in line 15, to omit "duties" and to substitute
"obligations"
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5. On page 6, after line 56, to insert:
(b) Despite any other provision of this Act, the first statutory actuarial
valuation of a fund registered in accordance with paragraph (a) must be
undertaken at the end of the first financial year following registration or
such other date approved by the registrar.
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6. On page 10,
from line 22, to omit paragraph (b) and to substitute:
(b) No fees or commissions of any nature, other than fees payable by the
transferring member or non-member spouse personally and any fees payable to the
registrar, are payable by any party to the transfer, or by any agent or
mandatory of such party:
(i) in return for the facilitation, intermediation or
recommendation of the transfer; or
(ii) for financial services rendered by a financial services provider or
representative after the transfer in respect of the transferred interest of the
transferring member or non-member spouse which exceed the fees or commission
that would have been permissible for such services had the transfer not been
done.
8. On page 10, from line 28, to omit "and at least 75% of those members
agreed to a proposed transaction contemplated in that subsection" to
substitute "of a proposed transaction"
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9. On page 12, in line 28, to omit "that the member joined the fund" and to substitute "of payment of a
contribution"
10. On page 13, in line 27, after
"accumulating" to insert "with fund return"
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11. On page 17, from line 22 to omit the definition of
"employer" and to substitute:
"employer" means the employer or employers participating in
the fund at the time of the improper utilisation of
surplus, determined in accordance with this section, and whom benefited from
the improper use: Provided that where a subsequent employer or employers by
contract or law became liable for the employee-related liabilities of the
previous employer. or employers, the subsequent
employer is also liable for the apportionment of surplus used improperly;
12. On page 18, in line 22, after "principles" to
insert "prescribed"
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13. On page 22, in line 42, to omit "or an
employer who participates in a fund"
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14. On page 25, in line 44, to omit "one
or more dependants" and to substitute "the spouse or child of the
member"
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15. On page 26, in line 38, to omit "or other
person"
16. On page 26, in line 41, to omit "or other
person"
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17. On page 27, from line 8 to omit section 40B and to substitute:
40B. The definitions in section 1 (1) of "actuarial surplus",
"contingency reserve account", "contribution holiday",
"defined benefit category of a fund", "employer surplus
account", ''fund return" , "member surplus account",
"minimum individual reserve" and "surplus apportionment
date", and sections 14A, 14B, 15B, 15C, 15E, 15F and 15K, are deemed to
have come into operation on 7 December 2001, for funds whose surplus
apportionment schemes have not been approved or whose nil returns referred to in
section 15B(11 )(b) have not been received by the registrar: Provided that
(i) in the case of funds whose surplus apportionment schemes
have been submitted but not yet approved on the effective date of this
amendment;
(ii) in the case of a nil return referred to in section 15B( 11 )(b) that has
been received by or on the effective date of this amendment but in respect of
which the Registrar is not satisfied that the requirements of section 15B( 11)
have been met, the registrar must inform such funds of the instances where
their schemes or nil returns do not comply with requirements of the Act and
grant the funds a reasonable period of time to review and resubmit their
schemes or returns for approval or noting.
18. On page 27, after line 19, to insert:
Regulations
40C. Before regulations in terms of this Act are promulgated,
the Minister must publish the draft regulations in the Government Gazette for
public comment and submit the regulations to Parliament, while it is in
session, for parliamentary scrutiny at least one month before their
promulgation.