On liquidation of a fund in terms of section 28 or 29, any credit balances in any reserve accounts, the member surplus account and the employer surplus account shall be applied in the following order of priority:
| (a) |
All credit balances in such accounts may be drawn upon to secure the rights and reasonable benefit expectations of the members participating in the distribution: Provided that the credit balances in any such accounts shall be reduced by the same proportion. |
| (b) |
Any remaining credit balances in the member surplus account, any contingency reserve accounts and any surplus which has not been allocated to the member and employer surplus accounts, shall be used for the benefit of the members and former members of the fund, in such manner as acting on the advice of the valuator, shall determine. |
| (c) |
Any remaining balance in the employer surplus account shall be paid to the employer unless the employer was liquidated prior to the commencement of the liquidation of the fund, in which case it shall be used in the following order of priority, namely— |
| (i) |
to meet contributions deducted from members' earnings and not paid to the fund; |
| (ii) |
to meet contributions due from the employer but not paid to the fund; and |
| (iii) |
to be distributed amongst the members at the date of liquidation and such former members as are eligible in terms of the rules to participate in the distribution. |
Older Persons Act, 2006
