EXTRACTS FROM THE LABOUR RELATIONS ACT -  Transitional Arrangements

CONTENTS:

Schedule 7

Part A-Definitions For This Schedule

1. Definitions for this Schedule

Part B-Unfair Labour Practices

2. Residual unfair labour practices
3. Disputes about unfair labour practices
4. Powers of Labour Court and Commission

Part C-Provisions Concerning Existing Trade Unions, Employers' Organisations, Industrial Councils And Conciliation Boards

5. Existing registered trade unions and employers' organisations
6. Pending applications by trade unions or employers' organisations for registration, variation of scope, alteration of constitution or name
7. Industrial councils
8. Pending applications by industrial councils for registration and variation of scope
9. Pending applications by industrial councils for alteration of constitution or name
10. Pending applications for admission of parties to industrial councils
11. Pending applications to wind up and cancel registration of trade unions, employers' organisations and industrial councils
12. Existing agreements and awards of industrial councils and conciliation boards
13. Existing agreements including recognition agreements

Part D- Matters Concerning Public Service

14. Public Service Bargaining Council
15. Collective agreements in the public service
16. Education Labour Relations Council
17. Education sector collective agreements
18. Negotiating Forum in South African Police Service
19. Collective agreement in South African Police Service
20. Consequences for public service bargaining institutions when Public Service Coordinating Bargaining Council is established

Part E-Disputes And Courts

21. Disputes arising before commencement of this Act
22. Courts

Part F-Pension Matters

23. Continuation of existing pension rights of staff members of Commission upon assuming employment

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EXTRACT FROM THE LABOUR RELATIONS ACT:

Schedule 7

Part A-Definitions For This Schedule

1. Definitions for this Schedule 

In this Schedule, unless the context otherwise indicates "Agricultural Labour Act" means the Agricultural Labour Act, 1993 (Act No. 147 of 1993);

"Education Labour Relations Act" means the Education Labour Relations Act, 1993 (Act No. 146 of 1993);

"Education Labour Relations Council" means the council established by section 6(1) of the Education Labour Relations Act;

"Labour Relations Act" means the Labour Relations Act, 1956 (Act No. 28 of 1956);

"labour relations laws" means the Labour Relations Act, the Education Labour Relations Act, Chapter I of the Agricultural Labour Act and the Public Service Labour Relations Act;

"National Negotiating Forum" means the National Negotiating Forum established for the South African Police Service by the South African Police Service Labour Relations Regulations, 1995;

"pending" means pending immediately before this Act comes into operation;

" public service" does not include the education sector;

"Public Service Bargaining Council" means the bargaining council referred to in section 5(1) of the Public Service Labour Relations Act;

"Public Service Labour Relations Act" means the Public Service Labour Relations Act, 1994 (promulgated by Proclamation No. 105 of 1994);

"registrar" means the registrar of labour relations designated in terms of section 108; and

"trade union" includes an employee organisation.

Part B-Unfair Labour Practices

2. Residual unfair labour practices

(1) For the purposes of this item, an unfair labour practice means any unfair act or omission that arises between an employer and an employee, involving-

(a) the unfair discrimination, either directly or indirectly, against an employee on any arbitrary ground, including, but not limited to race, gender, sex, ethnic or social origin, colour, sexual orientation, age, disability, religion, conscience, belief, political opinion, culture, language, marital status or family responsibility;

(b) the unfair conduct of the employer relating to the promotion, demotion or training of an employee or relating to the provision of benefits to an employee;

(c) the unfair suspension of an employee or any other disciplinary action short of dismissal in respect of an employee;

(d) the failure or refusal of an employer to reinstate or re-employ a former employee in terms of any agreement.

(2) For the purposes of sub-item (1)(a)-

(a) "employee" includes an applicant for employment;

(b) an employer is not prevented from adopting or implementing employment policies and practices that are designed to achieve the adequate protection and advancement of persons or groups or categories of persons disadvantaged by unfair discrimination, in order to enable their full and equal enjoyment of all rights and freedoms; and

(c) any discrimination based on an inherent requirement of the particular does not constitute unfair discrimination.

3. Disputes about unfair labour practices

(1) Any party may refer a dispute about an alleged unfair labour practice in writing to-

(a) a council, if the parties to the dispute fall within the registered scope of that council; or

(b) the Commission, if no council has jurisdiction.

(2) The party who refers the dispute must satisfy the council or the Commission that a copy of the referral has been served on all the other parties to the dispute.

(3) The council or the Commission must attempt to resolve the dispute through conciliation.

(4) If the dispute remains unresolved-

(a) any party to the dispute, if the dispute is about an act or omission referred to in item 2(1)(a), may refer the dispute to the Labour Court for adjudication;

(b) any party to the dispute, if the dispute is about an act or omission referred

55. See flow diagram No. 14 in Schedule 4. to in item 2(1)(b), (c) or (d), may request that the dispute be resolved through arbitration.

4. Powers of Labour Court and Commission

(1) The Labour Court has the power to determine any dispute that has been referred to it in terms of item 3 on terms it deems reasonable, including, but not limited to, the ordering of reinstatement or compensation.

(2) The arbitrator has the power to determine any dispute that has been referred to it in terms of item 3 on reasonable terms.

Part C-Provisions Concerning Existing Trade Unions, Employers' Organisations, Industrial Councils And Conciliation Boards

5. Existing registered trade unions and employers' organisations

(1) A trade union or employers' organisation registered in terms of the labour relations laws immediately before the commencement of this Act is deemed to be a registered trade union or registered employers' organisation under this Act and continues to be a body corporate.

(2) As soon as practicable after the commencement of this Act, the registrar must enter-

(a) the name of the trade union in the register of trade unions;

(b) the name of the employers' organisation in the register of employers' organisations.

(3) A trade union or employers' organisation whose name has been entered in the appropriate register must be issued with a new certificate of registration.

(4) If any provision of the constitution of the trade union or employers' organisation does not comply with the requirements of section 95, the registrar may direct that trade union or employers' organisation, in writing, to rectify its constitution and submit it to the registrar within a period specified in the direction, which period may not be shorter than three months.

(5) If a trade union or employers' organisation falls to comply with a direction issued to it in terms of sub-item (4), the registrar must notify the trade union or employers' organisation that cancellation of its registration is being considered because of the failure, and give the trade union or employers' organisation an opportunity to show cause why its registration should not be cancelled within 30 days of the notice.

(6) If, when the 30-day period expires, the relevant trade union or employers' organisation has not shown cause why its registration should not be cancelled, the registrar must cancel the registration of that trade union or employers' organisation by removing its name from the appropriate register or take other lesser steps that are appropriate and not inconsistent with this Act.

(7) The registrar must notify the relevant trade union or employers' organisation whether the registration of the trade union or employers' organisation has been cancelled.

(8) Cancellation in terms of subitem (6) takes effect-

(a) if the trade union or the employers' organisation has failed, within the time contemplated in section 111 (3), to appeal to the Labour Court against the cancellation, when that period expires; or

(b) if the trade union or the employers' organisation has lodged an appeal, when the decision of the registrar has been confirmed by the Labour Court.

6. Pending applications by trade unions or employers' organisations for registration, variation of scope, alteration of constitution or name

(1) Any pending application in terms of the labour relations laws for the registration, variation of scope of registration or alteration of the constitution or name of a trade union or an employers' organisation must be dealt with by the registrar as if the application had been made in terms of this Act.

(2) The registrar appointed in terms of the Public Service Labour Relations Act and the secretary of the Education Labour Relations Council appointed in terms of the Education Labour Relations Act must forward any pending application referred to in sub-item (1) to the registrar.

(3) In any pending appeal in terms of section 16 of the Labour Relations Act or in terms of section I I of the Education Labour Relations Act or in terms of section I I of the Public Service Labour Relations Act, the Minister or the registrar of the industrial court or the registrar of the Supreme Court, as the case may be, must refer the matter back to the registrar who must deal with the application as if it were an application made in terms of this Act.

(4) When dealing with any application referred to in sub-item (1) or (2), the registrar-

(a) may condone any technical non-compliance with the provisions of this Act; and

(b) may require the applicant to amend its application within 60 days in order to comply with the provisions of this Act.

7. Industrial councils

(1) An industrial council registered in terms of the Labour Relations Act immediately before the commencement of this Act is deemed to be a bargaining council under this Act and continues to be a body corporate.

(2) As soon as practicable after the commencement of this Act, the registrar must enter the name of the bargaining council in the register of councils.

(3) A bargaining council whose name has been entered in the register of councils must be issued with a certificate of registration.

(4) If any provision of the constitution of a bargaining council does not comply with the requirements of section 30, the registrar may direct the bargaining council, in writing, to rectify its constitution and submit it to the registrar within a period specified in the direction, which period may not be shorter than three months.

(5) If a bargaining council fails to comply with a direction issued to it in terms of sub-item (4), the registrar must notify the bargaining council that cancellation of its registration is being considered because of the failure, and give the bargaining council an opportunity to show cause why its registration should not be cancelled within 30 days of the notice.

(6) If, when the 30-day period expires, the bargaining council has not shown cause why its registration should not be cancelled, the registrar must cancel the registration of that bargaining council by removing its name from the register of councils or take other lesser steps that are appropriate and not inconsistent with this Act.

(7) The registrar must notify the bargaining council whether the registration of the bargaining council has been cancelled.

(8) Cancellation in terms of sub-item (6) takes effect-

(a) if the bargaining council has failed, within the time contemplated in section 111(3), to appeal to the Labour Court against the cancellation, when that period expires; or

(b) if the bargaining council has lodged an appeal, when the decision of the registrar has been confirmed by the Labour Court.

8. Pending applications by industrial councils for registration and variation of scope

(1) Any pending application for the registration or the variation of the scope of registration of an industrial council in terms of the Labour Relations Act must be dealt with as if it were an application made in terms of this Act.

(2) In any pending appeal in terms of section 16 of the Labour Relations Act against the refusal to register an industrial council, the Minister or the registrar of the Supreme Court must refer the matter to the registrar of labour relations who must consider the application anew as if it were an application for registration made in terms of this Act.

(3) When dealing with the application referred to in sub-item (1) or (2), the registrar may-

(a) require the applicant to amend its application within 60 days in order to comply with the provisions of this Act; and

(b) condone technical non-compliance with the provisions of this Act.

9. Pending applications by industrial councils for alteration of constitution or name

The provisions in item 6 apply, read with the changes required by the context, to any pending application for the alteration of the constitution or the name of an industrial council in terms of the Labour Relations Act.

10. Pending applications for admission of parties to industrial councils 

(1) Any pending application for admission of a party to an industrial council in terms of section 21 A of the Labour Relations Act must be dealt with by the industrial council as if it were an application made in terms of this act (2) Any pending appeal before the industrial court against a decision of an industrial I] in terms of section 21 A of the Labour Relations Act must be with by council in the industrial court as if the application had been made for admission as a party to a bargaining council in terms of this Act.

(3) An appeal against a decision of an industrial council as contemplated in section 21 A of the Labour Relations Act may, despite the repeal of that Act, be instituted after the commencement of this Act, and must be heard by the Labour Court and dealt with as if the application for admission had been made in terms of this Act.

11. Pending applications to wind up and cancel registration of trade unions, employers' organisations and industrial councils

Any pending application to wind up or to cancel the registration of a trade union, employers' organisation or industrial council registered in terms of any labour relations law must be dealt with by the registrar as if the labour relations laws had not been repealed.

12. Existing agreements and awards of industrial councils and conciliation boards

(1) Any agreement promulgated in terms of section 48, and any award made in terms of section 50, of the Labour Relations Act and in force immediately before the commencement of this Act remains in force for a period of 18 months after the commencement of this Act or until the expiry of that agreement, whichever is the shorter period, as if that Act had not been repealed.

(2) An agreement promulgated in terms of section 12 of the Education Labour Relations Act and in force immediately before the commencement of this Act remains in force for a period of 18 months after the commencement of this Act or until the expiry of that agreement, whichever is the shorter period, as if the provisions of that Act had not been repealed.

(3) Despite the provisions of sub-item (1), an agreement referred to in section 24(l)(x) of the Labour Relations Act that is in force immediately before the commencement of this Act will be deemed to be a closed shop agreement concluded in compliance with section 26 of this Act except that-

(a) the requirements in section 26(3)(d) and section 98(2)(b)(ii) become applicable at the commencement of the next financial year of the trade union party to the agreement; and

(b) the commencement date of the closed shop agreement shall be deemed to be the commencement date of this Act.

(4) Any pending request for the promulgation of an agreement in terms of section 48 of the Labour Relations Act must be dealt with as if the Labour Relations Act had not been repealed.

(5) Any request made before the expiry of six months after the commencement of this Act for the promulgation of an agreement entered into before the commencement of this Act must be dealt with as if the Labour Relations Act had not been repealed.

(6) Any pending application for an exemption from an agreement promulgated in terms of section 48 of the Labour Relations Act must be dealt with as if the Labour Relations Act had not been repealed.

13. Existing agreements including recognition agreements

(1) For the purposes of this section, an agreement-

(a) includes a recognition agreement;

(b) excludes an agreement promulgated in terms of section 48 of the Labour Relations Act or section 12 of the Education Labour Relations Act;

(c) means an agreement about terms and conditions of employment or any other matter of mutual interest entered into between one or more registered trade unions, on the one hand, and on the other hand-

(i) one or more employers;

(ii) one or more registered employers' organisations; or

(iii) one or more employers and one or more registered employers' organisations.

(2) Any agreement that was in force immediately before the commencement of this Act is deemed to be a collective agreement concluded in terms of this Act.

(3) Any registered trade union that is party to an agreement referred to in sub-items (1) and (2) in terms of which that trade union was recognised for the purposes of collective bargaining is entitled to the organisational rights conferred by sections I I to 16 of Chapter III and in respect of employees that it represents in terms of the agreement, for so long as the trade union remains recognised in terms of the agreement as the collective bargaining agent of those employees.

(4) If the parties to an agreement referred to in subsection (1) or (2) have not provided for a procedure to resolve any dispute about the interpretation or application of the agreement as contemplated in section 24(l), the parties to the agreement must attempt to agree a procedure as soon as practicable after the commencement of this Act.

(5) An existing non-statutory agency shop or closed shop agreement is not binding unless the agreement complies with the provisions of sections 25 or 26 of this Act respectively. This provision becomes effective 180 days after the commencement of this Act.

Part D-Matters Concerning Public Service

14. Public Service Bargaining Council

(1) The Public Service Bargaining Council will continue to exist, subject to item 20.

(2) The departmental and provincial chambers of the Public Service Bargaining Council will continue to exist, subject to item 20.

(3) Within 30 days after the commencement of this Act, the chambers of the Public Service Bargaining Council must furnish the registrar with copies of their constitutions signed by their authorised representatives.

(4) The constitutions of the chambers of the Public Service Bargaining Council, are deemed to be in compliance with section 30. However, where any provision of the constitution of a chamber does not comply with the requirements of section 30, the registrar may direct the chamber to rectify its constitution and re-submit the rectified constitution within the period specified in the direction, which period may not be shorter than three months.

(5) If a chamber fails to comply with a direction issued to it in terms of sub-item (5), the registrar must-

(a) determine the amendments to the constitution in order to meet the requirements of section 30; and

(b) send a certified copy of the constitution to the chamber.

(6) A chamber of the Public Service Bargaining Council must deal with any pending application for admission of a party to it in terms of section 10 of the Public Service Labour Relations Act as if the application had been made in terms of this Act.

(7) Any pending appeal before the industrial court or an arbitrator against a decision of the Public Service Bargaining Council in terms of section 10 of the Public Service Labour Relations Act must, despite the repeal of any of the labour relations laws, be dealt with by the industrial court or arbitrator as if the application had been made in terms of this Act.

(8) Despite the repeal of the Public Service Labour Relations Act, an appeal in terms of section 10 of that Act against a decision of a chamber of the Public Service Bargaining Council may be instituted after the commencement of this Act and must be heard by the Labour Court and dealt with as if the application had been made in terms of this Act.

15. Collective agreements in the public service

The following provisions, read with the changes required by the context, of the Public Service Labour Relations Act, despite the repeal of that Act, will have the effect and status of a collective agreement binding on the State, the parties to the chambers of the Public Service Bargaining Council and all employees in the public service-

(a) section I for the purposes of this item unless the context otherwise indicates;

(b) section 4(10);

(c) section 5(2), (3), (4)(a) and (5);

(d) section 7;

(e) section 8, except that the reference to section 5(l) should be a reference to item 14(l);

(f) section 9(3);

(g) section 10(4) and (5);

(h) section 12;

(i) section 13, except that the reference to agreements should be a reference to collective agreements including the collective agreement contemplated in this item;

(j) sections 14, 15 and 16(2);

(k) section 17, except that the following subsection must be substituted for subsection (4)(b)- "If the application of a trade union for recognition is refused, the trade union, within 90 days of the notice of the refusal, may refer the dispute to arbitration."; and

(l) section 18, except that-

(i) the following subsection must be substituted for sub- section (10)(a)- "An employee who or the employee organisation which in terms of subsection (1) has declared a dispute, requested that a conciliation board be established and submitted the completed prescribed form, may refer the dispute to arbitration or to the Labour Court in terms of the provisions of this Act and, in respect of a dispute not contemplated by this Act, to any other court if-

(i) a meeting of a conciliation board is not convened as contemplated in subsection (3);

(ii) the head of department concerned falls to request the appointment of a chairperson in terms of subsection (5);

(iii) where applicable, the Commission fails to appoint a chairperson of the conciliation board in terms of subsection (5);

(iv) the parties involved in the conciliation board have failed to agree to extend the period of office of the conciliation board in terms of subsection (7) until a settlement is reached;

(v) the conciliation board does not succeed in settling the dispute within the period contemplated in subsection (7); or

(vi) the parties to the dispute agree that they will not be able to settle the dispute and submit written proof thereof to the Commission or relevant court."; and

(ii) any reference to the Department of Labour should be a reference to the Commission.

16. Education Labour Relations Council

(1) The Education Labour Relations Council will continue to exist, subject to item 20.

(2) The registered scope of the Education Labour Relations Council is the State and those employees in respect of which the Educators' Employment Act, 1994 (Proclamation No. 138 of 1994), applies.

(3) Within 30 days after the commencement of this Act, the Education Labour Relations Council must furnish the registrar with a copy of its constitution signed by its authorised representatives, and with the other information or documentation.

(4) The constitution agreed on between the parties to the Education Labour Relations Council is deemed to be in compliance with this Act: However, where any provision of the constitution does not comply with the requirements of section 30, the registrar may direct the Council to rectify its constitution and re-submit the rectified constitution within the period specified in the direction, which period may not be shorter than three months.

(5) If the Education Labour Relations Council fails to comply with a direction issued to It in terms of sub-item (5), the registrar must-

(a) determine the amendments to the constitution in order to meet the requirements of section 30; and

(b) send a certified copy of the constitution to the Council.

(6) The Education Labour Relations Council must deal with any pending application for admission to it in terms of the Education Labour Relations Act as if the application had been made in terms of this Act.

(7) Any pending appeal before the industrial court or an arbitrator against a decision of the Education Labour Relations Council must, despite the repeal of any of the labour relations laws, be dealt with by the industrial court or arbitrator as if the application had been made in terms of this Act.

(8) Despite the repeal of the Education Labour Relations Act, any appeal against a decision of the Education Labour Relations Council may be instituted after the commencement of this Act and must be heard by the Labour Court and dealt with as if the application had been made in terms of this Act.

17. Education sector collective agreements

The following provisions, read with the changes required by the context, of the Education Labour Relations Act, despite the repeal of that Act, will have the effect and status of a collective agreement binding on the State, the parties to the Education Labour Relations Council and all employees within registered scope-

(a) section 6(2) and (3);

(b) section 8(3), (4) and (5)(a);

(c) section 10(3) and (4);

(d) section 12(1) to (4), except that the disputes referred to in subsections (2) and (4) may be referred to arbitration only; and

(e) section 13 and section 14(2).

18. Negotiating Forums in South African Police Service

(1) The National Negotiating Forum will continue to exist subject to item 20.

(2) The registered scope of the National Negotiating Forum is the State and those employees in respect of whom the South African Police Service Rationalisation Proclamation, 1995 and the Act contemplated in section 214 of the Constitution applies.

(3) Within fourteen days of the commencement of this Act, or signing of its constitution by its authorised representatives, whichever is the later, the National Negotiating Forum must furnish the registrar with a copy of its constitution signed by its authorised representatives, and with the other information or documentation.

(4) The constitution agreed to by the National Negotiating Forum is deemed to be in compliance with this Act. However where any provision of the constitution does not comply with the requirements of section 30, the registrar may direct the National Negotiating Forum to rectify its constitution and re-submit the rectified constitution within fourteen days.

(5) The National Commissioner of the South African Police Service must deal with any pending application for registration and recognition in terms of the South made' African Police Service Labour Regulations as if the application had been in terms of this Act

19. Collective agreement in South African Police Service

The provisions of the South African Police Services Employment Regulations, read with the changes required by the context, despite the repeal of those regulations, will have the effect and status of a collective agreement binding on the State, the parties to the National Negotiating Forum and all the employees within its registered scope.

20. Consequences for public service bargaining institutions when Public Service Co-ordinating Bargaining Council is established

When the Public Service Co-ordinating Bargaining Council is established in terms of item 2 of Schedule I-

(a) the Public Service Bargaining Council and its chamber at central level will cease to exist; and

(b) the following chambers of the former Public Service Bargaining Council will continue to exist as juristic persons, despite paragraph (a), namely-

(i) the chamber for each department, which will be deemed to be a bargaining council that has been established under section 37(3)(a) of this Act for that department;

(ii) the chamber for each provincial administration, which will be deemed to be a bargaining council that has been established under section 37(3)(a) for that provincial administration; and

(c) the Education Labour Relations Council will be deemed to be a bargaining council that has been established in terms of section 37(3)(b) of this Act for the education sector;

(d) the National Negotiating Forum will be deemed to be a bargaining council that has been established in terms of section 37(3)(b) of this Act for the South African Police Service.

Part E-Disputes And Courts

21. Disputes arising before commencement of this Act 

(1) Any dispute contemplated in the labour relations laws that arose before the commencement of this Act must be dealt with as if those laws had not been repealed.

(2) Despite subsection (1), a strike or lock-out that commences after this Act comes into operation will be dealt with in terms of this Act. This rule applies even if the dispute giving rise to the strike or lock-out arose before this Act comes into operation.

(3) For the purposes of a strike or lock-out referred to in sub-item (2), compliance with section 65(l)(d) of the Labour Relations Act, section 19(l)(b) of the Public Service Labour Relations Act and section 15(l)(b) of the Education Labour Relations Act will be deemed to be compliance with section 64(l)(a) of this Act.

22. Courts 

(1) In any pending dispute in respect of which the industrial court or the agricultural labour court had jurisdiction and in respect of which proceedings had not been instituted before the commencement of this Act, proceedings must be instituted in the industrial court or agricultural labour court (as the case may be) and dealt with as if the labour relations laws had not been repealed. The industrial court or the agricultural labour court may perform or exercise any of the functions and powers that it had in terms of the labour relations laws when it determines the dispute.

(2) Any dispute in respect of which proceedings were pending in the industrial court or the agricultural labour court must be proceeded with as if the labour relations laws had not been repealed.

(3) Any pending appeal before the Labour Appeal Court established by section 17A of the Labour Relations Act must be dealt with by the Labour Appeal Court as if the labour relations laws had not been repealed.

(4) Any pending appeal from a decision of that Labour Appeal Court or any appeal to the Appellate Division from a decision of the Labour Appeal Court in terms of section 17C and section 64 of the Labour Relations Act must be dealt with as if the labour relations laws had not been repealed.

(5) Any appeal from a decision of the industrial court or the agricultural labour court in terms of sub-item (1) or (2), must be made to the Labour Court established by section 151 of this Act, and that Labour Court must deal with the appeal as if the labour relations laws had not been repealed.

Part F-Pension Matters

23. Continuation of existing pension rights of staff members of Commission upon assuming employment 

(1) Any staff member of the Commission who, immediately before assuming employment with the Commission, is a member of the Government Service Pension Fund, the Temporary Employees Pension Fund or any other pension fund or scheme administered by the Department of Finance (hereinafter referred to as an officer or employee), may upon assuming that employment-

(a) choose to remain a member of that pension fund, and from the date of exercising the choice, the officer or employee, despite the provisions of any other law, will be deemed to be a dormant member of the relevant pension fund within the contemplation of section 15(l)(a) of the General Pensions Act, 1979 (Act No. 29 of 1979);

(b) request to become a member of the Associated Institutions Pension Fund established under the Associated Institutions Pension Fund Act, 1963 (Act No. 41 of 1963), as if the Commission had been declared an associated institution under section 4 of that Act; or

(c) request to become a member of any other pension fund registered under the Pension Funds Act, 1956 (Act No. 24 of 1956).

(2) In the case where an officer or employee becomes a member of a fund after making a request in terms of sub-item (1)(b) or (c)-

(a) the pension fund of which the officer or employee was a member ("the former fund") must transfer to the pension fund of which the officer or employee becomes a member of ("the new fund") an amount equal to the funding level of the former fund multiplied by its actuarial liability in respect of that officer or employee at the date the officer or employee assumes office with the Commission, increased by the amount of interest calculated on that amount at the prime rate of interest from the date when employment with the Commission commenced up to the date of transfer of the amount;

(b) membership of the officer or employee of the former fund will lapse from the date when employment with the Commission commenced, and from that date the officer or employee will cease to have any further claim against the former fund except as provided in paragraph (a); and

(c) the former fund must transfer any claim it may have against the officer or employee, to the new fund.

(3) In the case where an officer or employee becomes a member of a new fund after a request in terms of sub-item (1)(c) the State must pay the new fund an amount equal to the difference between the actuarial liability of the former fund in respect of the officer or employee as on the date of the commencement of employment with the Commission, and the amount transferred in terms of sub-item (2)(c) to the new fund, increased by the amount of interest thereon calculated at the prime rate from the date of commencement of employment up to the date of the transfer of the amount.

(4) Sub-items (2) and (3) will apply, read with the changes required by the context, in respect of any officer or employee who, by reason of having made a choice in terms of sub-item (1)(a), has become a dormant member and thereafter requests that the pension benefits that had accrued, be transferred in terms of section 15A(1) of the General Pensions Act, 1979, to another pension fund referred to in that Act or a pension fund registered in terms of the Pension Funds Act, 1956.

(5) If, after an officer or employee has become a member of any other pension fund, by reason of having made a choice in terms of sub-item (1)(c), a lump sum benefit has become payable by that pension fund by reason of the death, or the withdrawal or resignation from the pension fund, or retirement, of the officer or employee, or the winding-up of the pension fund, then, for the purposes of paragraph (e) of the definition of "gross income" in section I of the Income Tax Act, 1962 (Act No. 58 of 1962), the pension fund will be deemed, in relation to such officer or employee, to be a fund referred to in paragraph (a) of the definition of "pension fund" in section I of that Act.

(6) For the purposes of this item-

" actuarial liability" of a pension fund in respect of a particular member or a group of members of the fund, means the actuarial liability that is determined by an actuary who the Minister has nominated for that purpose;

"funding level", in relation to a pension fund, means the market value of the assets of the fund stated as a percentage of the total actuarial liability of the fund, after those assets and liabilities have been reduced by the amount of the liabilities of the fund in respect of all its pensioners, as determined at the time of the most recent actuarial valuation of the fund or any review thereof carried out under direction of the responsible Minister; and

" prime rate of interest" means the average prime rate of interest of the three largest banks in the Republic.

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