[Section 24A heading substituted by section 24 of the Pension Funds Amendment Act, 2024 (Act No. 31 of 2024), GG50968, dated 23 July 2024 - effective 1 September 2024 as per Proclamation Notice 175, GG51122, dated 26 August 2024]
| (1) | The Fund must reduce a member’s pension interest by any amount assigned from the member’s pension interest to the member’s former spouse in terms of a decree of divorce granted under section 7(8)(a) of the Divorce Act or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion. |
| (2) | A fund may not, without the consent of the non-member spouse, grant a loan or guarantee or permit a savings withdrawal benefit to be taken by a member if the fund received written notification from the member or non-member spouse with proof that— |
| (a) | a divorce has been instituted, as defined in the Divorce Act; |
| (b) | an application has been made for a court order in respect of the division of assets of a marriage in accordance with the tenets of any religion. |
| (3) | The prohibition in terms of subsection (2) applies until finalisation of the divorce or until a court order is issued. |
(4)
| (a) | Subject to paragraph (k), for purposes of section 7(8)(a) of the Divorce Act or in terms of or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion, the portion of a member’s pension interest assigned to the member’s former spouse is deemed to accrue to the member on the date on which the decree of divorce or court order is granted. |
| (b) | The amount of the member’s pension interest in the Fund must be determined and the amount of the member’s pension interest that is assigned to the former spouse must be calculated by the Fund in accordance with the rules as at the date of the decree of divorce or the date of the court order granted in respect of the division of assets of a marriage according to the tenets of a religion. |
| (c) | Prior to determining the amount of the member’s pension interest that is assigned to the former spouse, the amount of the member’s pension interest referred to in paragraph (b) must first be reduced in accordance with the rules by any amount of the member’s pension interest which, in a previous divorce or a previous court order granted in respect of the division of assets of a marriage according to the tenets of a religion, was paid over or awarded to another party. |
(d)
| (i) | The benefit that is subsequently payable to the member shall, as provided in the rules, be decreased by reducing the member’s years of pensionable service to take into account the pension interest of the member which was assigned to any former spouse of the member. |
| (ii) | The rules referred to in subparagraph (i) shall be made on the advice of an actuary. |
| (e) | The Fund must, within 45 days of the submission of the court order by the former spouse of a member, request the former spouse to elect whether the amount to be deducted must be— |
| (i) | paid directly to the former spouse; or |
| (ii) | transferred to an approved retirement fund on behalf of the former spouse. |
| (f) | The former spouse must, within 120 days of being requested to make a choice— |
| (i) | inform the Fund of the manner in which the amount referred to in paragraph (e) must be dealt with and |
| (ii) | if the former spouse chooses that the amount must be |
| (aa) | paid to the former spouse directly, provide the Fund with the details that are necessary to effect the payment; or |
| (bb) | if the former spouse chooses that the amount must be transferred to an approved pension fund on his or her behalf, provide the Fund with the details of that approved retirement fund; |
| (g) | The Fund must pay or transfer the amount in the circumstances contemplated in— |
| (i) | paragraph (f)(ii)(aa), within 30 days; or |
| (ii) | paragraph (f)(ii)(bb), within 60 days, |
in accordance with the former spouse’s choice, failing which interest becomes payable on such amount at a rate determined in the rules.
| (h) | In the event that the former spouse fails to make a choice or identify the approved retirement fund to which the amount must be transferred within the period referred to in paragraph (f), the Fund must pay the amount directly to the former spouse within 30 days of the expiry of that period, failing which interest becomes payable on such amount at a rate determined in the rules. |
| (i) | Despite paragraph (h), in the event that the Fund cannot reasonably ascertain the manner in which the payment to the former spouse must be effected, the Fund must retain the amount plus interest as determined in the rules of the Fund, until such time as details of the manner in which that payment must be effected is made available to the Fund by the member, the former spouse or any other person whom the Fund is satisfied has the necessary authority and capacity to instruct the Fund in that respect. |
| (i) | is not a member or beneficiary in relation to the fund; and |
| (ii) | is entitled to the accrual of fund return from the date of deduction until payment or transfer of the deduction contemplated in this subsection. |
| (k) | Any portion of a member’s pension interest assigned to a former spouse in terms of a decree of divorce or a court order granted prior to the enactment of this subsection must, for purposes of any law other than the Income Tax Act including, but not limited to, section 7(8)(a) of the Divorce Act or a court order granted in respect of the division of assets of a marriage according to the tenets of a religion, be deemed to have accrued to the member on the date of enactment of this subsection, and must be paid or transferred in accordance with paragraphs (a) to (j). |
[Section 24A substituted by section 24 of the Pension Funds Amendment Act, 2024 (Act No. 31 of 2024), GG50968, dated 23 July 2024 - effective 1 September 2024 as per Proclamation Notice 175, GG51122, dated 26 August 2024]
