| (a) | deduct any amount due on the benefit in question by the member in accordance with the Income Tax Act, 1962 (Act No. 58 of 1962), and any amount due to the fund in respect of— |
| (ii) | any amount for which the fund becomes liable under a guarantee furnished in respect of a member for a loan granted by some other person to the member in terms of section 19(5), from— |
| (aa) | the amount of the benefit to which the member or a beneficiary becomes entitled in terms of the rules of the fund; or |
| (bb) | in the case of a transfer of the member to another fund, the amount of the benefit which the fund is so entitled to transfer, if the board of the transferor is satisfied that it is not otherwise reasonably possible to negotiate the repayment or to transfer the loan or the guarantee; or |
| (cc) | in the case of default on the repayment of any such loan by the member concerned in circumstances where his or her membership of the fund is not terminated, the amount of the benefit which the member would have received on termination of membership on the date of default, if such a deduction is only effected as a last resort after the board of the fund is satisfied that no other arrangement for the required repayment can be made; |
| (b) | deduct any amount due by a member to his employer on the date of his retirement or on which he ceases to be a member of the fund, in respect of— |
| (aa) | a loan granted by the employer to the member for any purpose referred to in section 19(5)(a); or |
| (bb) | any amount for which the employer is liable under a guarantee furnished in respect of a loan by some other person to the member for any purpose referred to in section 19(5)(a), |
to an amount not exceeding the amount which in terms of the Income Tax Act, 1962, may be taken by a member or beneficiary as a lump sum benefit as defined in the Second Schedule to that Act; or
| (ii) | compensation (including any legal costs recoverable from the member in a matter contemplated in subparagraph (bb)) in any damage caused to the employer by reason of any theft, dishonesty, fraud or misconduct by the member, and in respect of which— |
| (aa) | the member has in writing admitted liability to the employer; or |
| (bb) | judgment has been obtained against the member in any court, including a magistrate's court, |
from any benefit payable in respect of the member or a beneficiary in terms of the rules of the fund and pay such amount to the employer concerned;
| (c) | deduct any amount which the fund has paid or will pay by arrangement with, and on behalf of, a member or beneficiary in respect of— |
| (i) | such member's or beneficiary's subscription to a medical scheme, registered otherwise than provisionally in terms of the Medical Schemes Act, 1998 (Act No. 131 of 1998); |
| (ii) | any insurance premium payable by such member or beneficiary to a long-term insurer registered in terms of the Long-term Insurance Act, 1998 (Act No. 52 of 1998); |
| (iii) | any purpose approved by the registrar, on the conditions determined by him, upon a request in writing from the fund, |
from the benefit to which the member or beneficiary is entitled in terms of the rules of the fund, and pay such amount, if due, to such medical scheme, insurer or person concerned, as the case may be.
| (d) | deduct from a member's or deferred pensioner's benefit, member's interest or minimum individual reserve, or the capital value of a pensioner's pension after retirement, as the case may be— |
| (i) | any amount assigned from such benefit or individual reserve to a non-member spouse in terms of a decree granted under section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979) or in terms of any order made by a court in respect of the division of assets of a marriage under Islamic law pursuant to its dissolution; |
| (iA) | any amount payable in terms of a maintenance order as defined in section 1 of the Maintenance Act, 1998 (Act No. 99 of 1998); and |
| (ii) | [Section 37D(1)(d)(ii) deleted by section 52(c) of Act No. 45 of 2013]; |
[Section 37D(1)(d) amended by section 52(a) and (b) of Act No. 45 of 2013]
| (e) | deduct from a member's or deffered pensioner's benefit, interest or minimum individual reserve, as the case may be, employees' tax required to be deducted or withheld in terms of the Fourth Schedule to the Income Tax Act, 1962 (Act No. 58 of 1962), as a result of a deduction referred to in this subsection. |
[Section 37D(1)(e) inserted by section 52(d) of Act No. 45 of 2013]
| (2) | For the purposes of paragraph (a)(ii)(bb) and (cc) of subsection (1), the amounts so deducted shall be deemed to be a benefit to which the member becomes entitled on termination of his or her membership of the fund for reasons other than as a result of retirement or death arising at the date of the transfer or the default. |
| (a) | Any amount that may be deducted in terms of subsection (1)(d) or (6) may only be deducted after the amount of member's or deferred pensioner's benefit or minimum individual reserve available has been reduced by any loan amount or guarantee amount referred to in subsection (1)(a), where such a loan or guarantee was granted prior to the granting of the court orders, irrespective of the fact that that amount is due and payable or not: Provided that the aggregate of all amounts deducted in terms of this subsection may not exceed the member's pension interest available at any given time. |
[Section 3(a) amended by section 52(e) of Act No. 45 of 2013]
| (b) | In the event that more than one of the court orders referred to in subsection (1) provides for the deduction of a member's benefit or minimum individual reserve, as the case may be, at the same time, the court orders must be dealt with in accordance with the following hierarchy— |
| (i) | any maintenance order referred to in subsection (1)(d)(iA); |
| (ii) | any decrees of divorce or for the dissolution of a customary marriage. |
| (a) | For purposes of section 7(8)(a) of the Divorce Act, 1979 (Act No. 70 of 1979), the portion of the pension interest assigned to the non-member spouse in terms of a decree of divorce or decree for the dissolution of a customary marriage is deemed to accrue to the member on the date on which the decree of divorce or decree for the dissolution of a customary marriage is granted, and, on the written submission of the court order by the non-member spouse— |
| (aa) | the pension fund or pension funds named in or identifiable from the decree; |
| (bb) | the pension fund or pension funds to which the pension fund referred to in item (aa) transferred the pension interest referred to in the decree; |
| (ii) | must be deducted on the date on which an election is made or, if no election is made within the period referred to in paragraph (b)(ii), the date on which that period expires; and |
[Section 37D(4((a)(ii) amended by section 52(f) of Act No. 45 of 2013]
| (iii) | must reduce the member's accrued benefits or minimum individual reserve at the date of the decree. |
| (i) | The pension fund must, within 45 days of the submission of the court order by the non-member spouse, request the non-member spouse to elect if the amount to be deducted must be paid directly to him or her, or if it must be transferred to a pension fund on his or her behalf. |
| (ii) | The non-member spouse must within 120 days of being requested to make an election— |
| (aa) | inform the pension fund of how the amount referred to in subparagraph (i) must be dealt with; and |
| (bb) | if he or she elects that the amount must be paid to him her directly, provide the pension fund with the details of how that payment must be effected; or |
| (cc) | if he or she elects that the amount must be transferred to a pension fund on his or her behalf, provide the pension fund with the details of that pension fund. |
| (iii) | The pension fund must pay or transfer the amount within 60 days of being informed of how the amount must be dealt with in accordance with the non-member spouse's election. |
| (iv) | In the event that the non-member spouse fails to make an election or identify the pension fund to which the amount should be transferred within the period referred to in subparagraph (ii), the pension must pay the amount directly to the non-member spouse within 30 days of the expiry of that period. |
| (v) | Despite subparagraph (iv), in the event that the pension fund cannot reasonably ascertain how the payment to the non-member spouse must be effected, the pension fund must retain the amount and any fund return referred to in paragraph (c)(ii) in the pension fund until such time as details of how that payment must be effected is made available to the pension fund by the member, the non-member spouse or any other person. |
| (i) | is not a member or beneficiary in relation to the pension fund; and |
| (ii) | is entitled to the accrual of fund return from the date of the deduction contemplated in paragraph (a)(ii) until payment or transfer thereof, but not to any other interest or growth. |
[Section 37D(4)(c)(ii) amended by section 52(g) of Act No. 45 of 2013]
| (d) | Any portion of the pension interest assigned to the non-member spouse in terms of a decree of divorce or decree for the dissolution of a customary marriage granted prior to 13 September 2007 are for purposes of any law other than the Income Tax Act, 1962, including, but not limited to, section 7(8)(a) of the Divorce Act, 1979, deemed to have accrued to the member on 13 September 2007 and must be paid or transferred in accordance with paragraphs (a) and (b). |
| (5) | Despite paragraph of the definition of "pension interest" in section 1(1) of the Divorce Act, 1979, the total amount of annual simple interest payable in terms of the definition may not exceed the fund return on the pension interest assigned to the non-member spouse in terms of a decree granted in terms of section 7(8)(a) of the Divorce Act, 1979. |
| (6) | Despite paragraph of the definition of "pension interest" in section 1(1) of the Divorce Act, 1979 (Act No. 70 of 1979), the portion of the pension interest of a member or a deferred pensioner of a pension preservation fund or provident preservation fund, that is assigned to a non-member spouse, refers to the equivalent portion of the benefits to which that member would have been entitled to in terms of the rules of the fund if his or her membership of the fund terminated, or the member or the deferred pensioner retired on the date on which the decree was granted. |
[Section 37D(6) amended by section 52(h) of Act No. 45 of 2013]
