Pension Funds Act, 1956 (Act No. 24 of 1956)Chapter IV : Documents to be Deposited with Registrar15D. Utilisation of surplus for benefit of members |
| (1) | Notwithstanding anything to the contrary in the rules of a fund but subject to subsection 2, any credit balance in the member surplus account may only be used by the board to— |
| (b) | where reasonable and equitable, improve the benefits paid to or the amounts transferred in respect of, former members who exited the fund subsequent to the surplus apportionment date; |
| (c) | reduce current contributions due from members; or |
| (d) | meet, in full or in part, expenses which would otherwise reduce the proportion of the members' contributions that are invested for retirement: |
Provided that the employer appointed members of the board shall not have a vote in any deliberation over the use of any credit balance in the member surplus account unless the proposal before the board will increase the contribution rate payable by the employer.
[Section 15D(1) amended by section 25 of Act No. 45 of 2013]
| (2) | The credit balance contemplated in subsection (1) after the apportionment of actuarial surplus as at the surplus apportionment date must be used as specified in the scheme submitted in terms of section 15B(1) if the scheme makes provision for the use of such credit balance. |