Section 23A: Lump sum payment

23A. Lump sum payment (1) A lump sum made up of contributions paid by an insured person, together with accrued interest as determined by such actuary as the Minister may appoint, shall be payable where— (a) the insured person dies before attaining retirement age and was unmarried at the time of death; (b) no contributory pension was awarded under Part IV on the basis of the contributions; and (c) no contributory pension is claimable after the death of the insured person. (1A) Where an insured person referred to in section 20 (2) (aa) has earned less than 150 pension points at the end of the relevant financial year of the date in which he claims the pension, he shall be eligible to a refund of the contributions made on his account up to the end of the month in which eligibility arises, together with accrued interest referred to in subsection (1), N21 – 16 (3) [Issue 9] National Pensions Act provided that the contributions have never been used for the payment of a contributory pension. (2) The lump sum shall be paid to the legal personal representatives of the deceased person. (2A) Where a lump sum is paid to an insured person under subsection (1A), any contribution paid thereafter in respect of that insured person shall— (a) not be used for the purpose of computing any contributory pension payable under Part IV; but (b) be refunded, together with accrued interest referred to in subsection (1)— (i) to the insured person when he ceases to work or reaches final retirement age, whichever is the earlier; (ii) in case of death of the insured person, to the surviving spouse of the insured person; or (iii) in the absence of a surviving spouse, to the other legal personal representative of the deceased insured person. (3) In this section— “dependent” has the same meaning as in section 29; “legal personal representative” includes a dependent. [S. 23A inserted by Act 18 of 1987; amended by Act 7 of 1990; s. 22 (g) of Act 18 of 2008 w.e.f. 1 July 2008; s. 12 (h) of Act 37 of 2011 w.e.f. 15 December 2011; s. 37 (e) of Act 18 of 2016 w.e.f. 1 July 2016.]