17. The following section is hereby substituted for section 25 of the principal Act: "Pension Funds 25.<<(1)>> Any technikon established under section 10(1)(a) or any <<technikon>>, college or other educational institution <<deemed to be a technikon established under this Act or>> declared to be a technikon in terms of **section 10(1)(3)** <<section 10(3) or (4)>>, as the case may be, may elect- (a) for the purposes of the Associated Institutions Pension Fund Act, 1963 (Act No. 41 of 1963), to be deemed to be declared as an associated institution under section 4 of the said Act as from the date on which it has been so established or has been so declared to be a technikon; or (b) to establish a pension fund in accordance with the provisions of the Pension Funds Act, 1956 (Act No. 24 of 1956). <<(2) Until a technikon has made an election as contemplated in subsection (1), any pension arrangement which is in force in respect of that technikon, shall remain in force. (3) If a technikon has elected to establish a pension fund as contemplated in subsection (1)(b) (in this section referred to as the newly established pension fund), every member of the Fund who is employed by the technikon in question, may take a non-recurrent choice- (a) to remain a member of the Fund; (b) to become a dormant member of the Fund; or (c) to terminate his or her membership of the Fund in terms of subsection (4)(c), in which event the member shall have no further claim against the Fund. (4) If a member of the Fund exercises the choice referred to in- (a) subsection (3)(a), he or she shall remain a member of the Fund; (b) subsection (3)(b), he or she shall become a member of the newly established pension fund on the day which follows the day on which he or she is declared a dormant member of the fund; or (c) subsection (3)(c)- (i) he or she shall become a member of the newly established pension fund on the day which follows the day on which his or her membership of the Fund is terminated; and (ii) the Fund shall make an amount available to the member, whether in cash or in specie, equal to the funding percentage multiplied by the actuarial obligation of the Fund in respect of that member as determined by the actuary on the date on which his or her membership of the Fund is terminated, with interest thereon calculated at the bank rate from that date on which the amount is paid: Provided that the member shall undertake immediately to deposit the full amount with interest into the newly established pension fund or a registered pension fund recognised by the Commissioner for Inland Revenue as a preservation fund: Provided further that such member, whilst employed by the technikon in question, shall not be entitled to any benefits from the newly established pension fund or the aforesaid preservation fund; and (iii) any amount owed by the member concerned to the Fund shall be deducted from the amount referred to in subparagraph (ii). (5) (a) If a technikon has elected to establish a pension fund as contemplated in subsection (1) (b), every pensioner who is allotted to such a technikon by the Director-General, may make a nonrecurrent choice- (i) to remain a pensioner of the Fund; or (ii) to become a pensioner of the newly established pension fund, in which event the pensioner shall have no further claim against the Fund. (b) If a pensioner exercises the choice referred to in paragraph (a)(ii), he or she shall become a pensioner of the newly established pension fund on the day which follows the day on which he or she ceases to be a pensioner of the Fund and the provisions of the Fund and the provisions of subsection (4)(c)(ii) and (iii) shall mutatis mutandis apply to him or her. (6)(a) If a technikon has elected to establish a pension fund as contemplated in subsection (1)(b), every dormant member may make a non-recurrent choice- (i) to remain a dormant member of the Fund; or (ii) to become a dormant member of the newly established pension fund and to transfer his or her interest to such fund in terms of the provisions of section 15A of the General Pensions Act, 1979 (Act No. 29 of 1979). (b) The provisions of subsection (4)(c)(ii) and (iii) shall mutatis mutandis apply to a dormant member referred to in paragraph (a)(ii). (7) A person who enters the employment of a technikon which has established a pension fund as contemplated in subsection (1)(b), shall become a member of that pension fund. (8) The choices given to members, pensioners and dormant members in terms of subsections (3), (5) and (6), respectively, shall be exercised on a date agreed upon by the technikon in question and the Director-General of Finance: Provided that such date shall not be later than 31 December 1995. (9) All costs in connection with the withdrawal of members, pensioners and dormant members from the Fund in terms of this section shall be refunded directly by the technikon in question, the newly established pension fund or the preservation fund in question, to the organisation incurring such costs. (10) For purposes of this section- "actuarial obligation", in relation to a particular member, pensioner or dormant member of the Fund, means the actuarial obligation of the Fund with regard to that member, pensioner or dormant member on the date referred to in subsection (4)(c)(ii), as calculated by the actuary; "actuary" means an actuary appointed by the Minister of Finance; "bank rate" means the rate determined from time to time under section 10(2) of the Reserve Bank of South Africa Act, 1989 (Act No. 29 of 1989); "Fund" means- (a) a pension fund as defined in section 1 of the General Pensions Act, 1979 (Act No. 29 of 1979); (b) the Government Employees Pension Fund of Transkei, established under the Government Employees Pension Act, 1978 (Act No. 15 of 1978) (Transkei); (c) the Ciskeian Civil Servants Pension Fund, established under the Government Service Pension Act, 1989 (Act No. 4 of 1989) (Ciskei); (d) the Government Pension Fund of Bophuthatswana, established under section 2(1) of the Government Service Pension Act, 1977 (Act No. 14 of 1977) (Bophuthatswana); and (e) the Government Pension Fund of Venda, established under section 2(1) of the Government Service Pensions Act, 1979 (Act No. 4 of 1979) (Venda); "funding percentage" means the market value of the net assets of the Fund on the date referred to in subsection (4)(c)(ii), expressed as a percentage of the calculated aggregate actuarial obligation of the Fund on that date, as determined by the actuary; and "pensioner" means a person who receives an annuity from the Fund.>>". Insertion of section 25A in Act 125 of 1993