| (1) | Every registered fund shall provide the following minimum benefits: |
| (b) | the benefit paid to a member if the fund is liquidated in terms of section 28 or 29 shall not be less than the minimum individual reserve: Provided that, where the fair value of the assets of the after recovery of any debt owed by the employer in terms of section 30(3) is lower than the sum of the minimum individual reserves for all members who are being included in the distribution of the assets after adjustment for any benefits paid previously and the cost of annuity policies which will provide equivalent pensions to all existing pensioners and deferred pensioners, the minimum individual reserve may be proportionally reduced in the ratio which the fair value of the assets bears to the total of all the minimum individual reserves adjusted for any benefits paid previously plus the cost of such annuity policies; |
| (c) | if a category of the fund is converted a defined benefit category to a defined contribution category, the amount to be credited to the member's individual account shall not be less than the minimum individual reserve: Provided that, where the fair value of the assets of the fund after recovery of any debt owed by the employer in terms of section 30(3) is lower than the sum of the minimum individual reserves for all members after adjustment for any benefits paid previously and the cost of annuity policies which will provide equivalent pensions to all existing pensioners and deferred pensioners, the minimum individual reserve may be proportionally reduced in the ratio which the fair value of the assets bears to the total of all the minimum individual reserves adjusted for any benefits paid previously plus the cost of such annuity policies; |
| (d) | at least once every three years, a pension increase shall be granted to pensioners and deferred pensioners (other than pensioners referred to in section 14B(3)(c) with effect from the valuation date on which the increase is based, which increase shall not be less than the minimum pension increase, starting with the first actuarial valuation following the commencement date. |
[Section 14A(1)(d) amended by section 20 of Act No. 45 of 2013]
| (a) | In respect of a fund which is registered on or after a date three months after the commencement date, subsection (1) shall apply on registration. |
| (b) | In respect of a fund which is registered prior to a date three months after the commencement date— |
| (ii) | subsection (1)(b), (c) and (d) shall apply from the commencement date. |
| (3) | If the employer or the board exercises any right that the employer or the board has in terms of the rules to liquidate the fund, or to terminate participation of a particular employer. in the fund, prior to the commencement date or to change the basis upon which future benefits accrue prior to the date which subsection (1)(a) applies to the fund, the members may not seek redress against the employer or the board in respect of any increase in value of the benefits that would occur as a result of the application of minimum individual reserves to the fund. |
[Section 14A has not yet commenced, per paragraph (h) of Notice 169 of 2018]
