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"vested component"

means a component established in terms of the rules of a pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund for a person who is a member of that fund:

Provided that the rules of the fund provide that—

(a) the member’s interest in this component, after taking into account the allocation of the amount contemplated in paragraph (a) of the definition of ‘savings component’, is subject to and must be paid in accordance with the rules of the fund that exist immediately prior to 1 September 2024;
(b) no contributions may be made to this component on or after 1 September 2024, except in the case of a person who was a member of a provident fund and is still a member of the same provident fund and who was 55 years of age or older on 1 March 2021:

Provided that where the above-mentioned member has elected to make contributions to this component on or after 1 September 2024, that member may not be allowed to make contributions to the savings component or the retirement component;

(c) the member may, in accordance with the rules of the fund that exist immediately prior to 1 September 2024, elect to transfer the value of this component into the member’s vested component of another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;
(d) the member may elect to transfer the value of this component into the member’s retirement component of another pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund; and
(e) the member may elect to transfer the value of this component into the member’s retirement component of the pension fund, pension preservation fund, provident fund, provident preservation fund or retirement annuity fund;

[Definition inserted by section 1(1)(zJ) of the Revenue Laws Amendment Act, 2024, Notice No. 4924, GG50750 dated 4 June 2024 - comes into operation on 1 September 2024 and applies in respect of years of assessment commencing on or after that date (section 1(2))]