National Pension Scheme Act, 1996
This section gives the Act its short title and says it starts on a date appointed by the Minister by statutory instrument.
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- Zambia
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- Act 40 of 1996
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About this statute
This section gives the Act its short title and says it starts on a date appointed by the Minister by statutory instrument. This section defines key terms used in the Act. Section 2 is an interpretation heading for Part II of the National Pe'ision Scheme Authority. This section establishes the National Pension Scheme Authority. Section title: “Secretary and other staff.”
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Provisions of National Pension Scheme Act, 1996
Showing 89 of 89
Part
PART I
- 1 Verify source ↗
(1) This Act may be cited as the National Pension Scheme
This section gives the Act its short title and says it starts on a date appointed by the Minister by statutory instrument.
1. (1) This Act may be cited as the National Pension Scheme Act, 1996. (2) This Act shall come into force on such date as the Minister may, by statutory instrument, appoint. - 2 Verify source ↗
Section 2
This section defines key terms used in the Act.
2. In this Act, unless the context otherwise requires- " appointed date " means the date appointed by the Minister under section one; " Authority" means the National Pension Scheme Authority established under section three; " average monthly earnings " means the amount determined under section nineteen; " Chairperson" means the Chairperson under paragraph I of the First Schedule; " contributing employer" means an employer desigpated by section twelve as a contributing employer; " Director-General " means the Director-General 'appointed under section six; "existing fund" means the Zambia National Provident Fund; " medical board " means a medical board established under section thirty-seven; "member" means an employee who is required to contribute to the Scheme under section eight; " national average earning " means the amount determined under section nineteen; ' . t i j ' • ,, \ I. National Pension Scheme f No. 40 of 1996 875 THE NATIONAL PENSION SCHEME ACT, 1996 ARRANGF.ME:-., or SECTIONS PART I PRE1.1�11r-: J\R Y Section - 2 Verify source ↗
Section 2
Section 2 is an interpretation heading for Part II of the National Pe'ision Scheme Authority.
2. Interpretation PART II NATIONAL PE'ISION SCIIEME AlJT"IIORrrY - 1 Verify source ↗
(1) The members of the Authority shall be
This section sets out how the Authority is made up, who appoints its members and officers, and how its seal is kept and authenticated.
1. (1) The members of the Authority shall be- ( a) two representatives from such associations of employees as the Minister shall designate; (b) two representatives from such associ�t/ons of employers as the Minister shall designate; ( c) a representative and an alternate member from the Minis- try responsible forfmance; . . . , , ' • . . . (d) a representative · and an .alternate :member from the . Ministry �nsible for social securjty; ( e) a representative qf the Bank of-Zambia;. (f) a representati".e of the Bankers Association of Zambia; _and ( g) a repn:sentativce ·or the Pension Managers Association. · (2) The members ref erred to. m subsection (I) shall be appointed ' ·;. ,' _ (3) The Chai�rion sh�ll be appointed �yth� Minister. . elected. from amongst the (4) The Vic;c;-Chahperscin shall be · by the Ministet . · · · •· ' '. . ; / :) ··- ,: : • r ·l . • ' · • · · : . • • •· ; •• : · � · ' members. Seal of Authority 2 •. (I) The seal of the Authority shall be such device as may be . . ·(2) The affixing of the seal shall be authentipted determined by.the Authority and shall be kept by the Secretary . by the Chair person or the Vice-Chairperson and the Secretary or one olher person al!thorised in that behalf by a resolu\ion of the Authority. • .. . .• ' ' · . National Pension Scheme [No. 40 of 1996 895 (3) Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not be required to be under seal, may be entered into or executed without seal on behalf of the Authority by the Secretary or any other person generally or specifically authorised by the Authority in that behalf. (4) Any document purporting to be' a document under the seal.of the Authority or issued on.behalfofthc Authority snail be received in evidence and shall be executed or issued, as the case may be, without further proof, unless lhe contra_r-y Js proved . . - 3 Verify source ↗
_(!) ·Subject to the other provisions of this Act, amembershall
Members serve a three-year term, may resign with notice, and the Authority can manage meetings and remove members under stated conditions.
3. _(!) ·Subject to the other provisions of this Act, amembershall hold office.for a period of three years from the date of appointment .- ·: . -''·· · and inay be re-appointed for a like period. ' A member may resign by giving one month's _no_g�_.in ° (2) Tenure of office of member writing .toJhe Secretary. · .. · . ... '•··· ' --- - . . 4. Notwithstanding paragraph 3, the Authority may, at ,;my tim�. wiih the approval of the Minister remove a person from ·the office of member-- , � .,, .. Removal of (nember . : . . ·t . , . . · ·. ; •-�c•�.•.••.,....,f" (1) .-Subject to the_ other_pi:ovis,ions of this A ( a) if that person ha� been absent from three consecutive meetings of the Authority and that absence was jn the opinion of the Authority without reasol)_able <;�Su)y.; or (b) i f the Authority is satisfied that the contir1µ'ance:c;;.f:that person in thc officc ofmembcrwill be prejudicfal'tf\rthe ::,;} ,'::,,"41fllt :: - interest of. the scheme. � f) .:.:�.:.<·f!•;o(\r:..::.-. ':: - S. (1) Whenever the office of a member becomes vacant before the expify'of the term· of office; the Minister rriay'appoiht lmbther membci- in.place of the member who vacates the �.ffice'.<'f•Ui_,: _. · ·• �,-_,!41 •rnoJ",1;: H , �fi��: 1�Il,1��,1Y ·:· 6,: may regul_a;e _1ts own procedm:e. . 1.,,. , , 1· .. ;;,.;, . . · · - :·(2) ,The.Authority shall-meet for the transaction of.business,,at' . lca.�t once in every three months· atsuch places and'at'such tinies'.as • . · ?J.;r�•-'.-J,;,f ! .-_ ; °le C)lairperson may deci�e. . . (3) · Upon giving notice of not less than fourteeri<lays: a'fueetiiig · of the Authority may be called by the Chairpersori'imd·shail'bc called if not less than one third of the members so request in writing: .-. Provided thal i f the urgency 9f any particular ni�tter dd� not permit the giving of such notice; a special meeting inay be called upon giving a shorter notice. - 1 Verify source ↗
} .t,. • ., ,fl ... ,
This provision sets how meetings of the Authority work, including quorum, who presides, voting, invited participants, and minutes.
1 .} .t,. • ., ,fl ... , .. . · .. .):, . c. . - - • • :1 • . - • . , • , • , (4) The quorum at any meeting of the Authority shall be the Chairperson or the Vice-Chairperson and three other members . .., , · Filling of casuol v8:c8Ilcy Proceedings of Authority . . � �\ _;�� -�/j�-:r . . .• '/ ' . : ·• . . ·' . . '•, �' ';'�•.?· :\1t· 896 No. 40 of 1996] National Pension Scheme (5) There shall preside at any meeting of the Authority (aJ the Chairperson; or fb) in the absence of the Chairperson or Vice-Chaiiperson, such member as the members present may elect from amongst themselves for the purpose of that meeting. (6) A decision of the Authority on any question shall be by a .majority of the members present and voting at the meeting and, in the event ofan equality ofvo_tes, the person presiding at the meeting shall have a casting vote in addition to the deliberative vote. (7) Where a member is for any reasonable cause unable to attend any meeting of the Authority. he may, in writing, nominate another person from ·the same organisation to attend such meeting in his stead and such person shall be deemed to be a member for the purpose of such meeting. (8) The Authority may invite any person, whose presence in its opinion is desirable, to attend and to participate in the deliberations of a meeting of the Authority but such person shall have no vote. (9) The validity of any proceedings, act or decision of the Authority shall not be affected by any vacancy in the membership ofthcAuthorityorbyanydcfec1inthe appointment ofanymember or by reason that any pe1Son not entitled so to do, took pan in the proceedings. · (10) The Authority shall cami" minutes to be kept of the pro ceedings of every meeting of the Auµiority and· every meeting of any conimittce established by the Authority. - 7 Verify source ↗
(!) The Authority may, for the pmpose of pcrfonning its
The Authority may establish committees, delegate functions to them, appoint their members, and decide how long members hold office.
7. (!) The Authority may, for the pmpose of pcrfonning its Commiuccs of Aulhoriiy functions under this Act, e.�tab1ish ·committees and deligate to any such committee such of its functions as ii thinks fit (2) Th� Authority ,may appoint"_as members of a committee established under subsection (1), persons who are or are not members of the Authority and such person shall hold office for such period as the Authority may determine. (3) Subject to any specific or general direction of the Authoricy any committee established under subsection (1), JTlay regulate its own procedure. - 8 Verify source ↗
There shall be paid 10 ihe members of the Authority or any
The Authority may set remuneration and allowances for its members or committee members, but only with the Minister’s approval.
8. There shall be paid 10 ihe members of the Authority or any commiuec of the Authority such"remuneration and allowances as the Aulhorily may determine, wilh the approval oflhe Miniscer. - 9 Verify source ↗
(I) If a member is present at a mectingofthe Authoricy orany
A member at an Authority or committee meeting must disclose a relevant private interest promptly and must not take part in discussion or voting on the matter unless the Authority directs otherwise.
9. (I) If a member is present at a mectingofthe Authoricy orany commitlee of the Authority ac which any matter is ·the subjecc of consideration and in which matter the member's spouse is directly Remunera tion and a1Jow&nce.s of members Disclosure of interest � • '-o •··•. , . ,:; ! I: I : : I I ' I i I ' i :i . . .. : :.. l� � t ·- ' � . \ ; .... . i National Pension Scheme [No. 40 of 1996 897 or indirectly interested in a private capacity the member shall, as soon as practkable after the commencement of the meeting, dis close such interest and shall not, unless the Authority otherwise direct�. take part in any consideration or discussion of, or vote on, any question touching such matter. (2) A disclosure of interest made under this section shall be recorded in the minutes of the meeting at which it is made. - 10 Verify source ↗
(1) A person shall not, without the consent in writing given
A person must not publish or disclose protected information from duties under the Act without written consent from or on behalf of the Authority, except in the course of duties.
10. (1) A person shall not, without the consent in writing given by or on behalf of the Authority, publish or di5close to any Ul)authorised person, oiherwise than in the course of his duties, the contents o f any documents, communication or information whatso cver;which_ relates to, and which has come to his knowledge in the course of his duties under this Act Prohibition .of publica tion of or disclosure of information IO unauthorised persons (2) Any person who contravenes the provisions of sub paragraph (1) shall be guilty of an offence and shall be lia!ile, upon conviction, to a fine not exceeding five hundred pe[!alty units orto imprisonment for a term not exceeding three years, or to both. (3) If any person having information which to his knowledge has been published or disclosed in contravention of sub-paragraph (I) unlawfully publishes or communicates any such-information to any otherperson, he shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding five hundred penalf:Y units orto imprisonment fora term not exceeding three moriihsorto both. . •'J �:,,.I . " . . . ·r . ,- FINANCIAi. PROVISIONS _ � PART II _ _ ·· ° \ . ,., ·c, -_;: . The funds ofth� Authority sh�ll consist of such moneys • . • . • . :·r · ·.'. ,· · . Funds of . Au_lhoriiy - 11 Verify source ↗
(1)
The Authority may accept donations, borrow money, charge fees for its services, and invest surplus funds.
11. (1) as niay ( a) be paid to the Aulhoritybywayof contributions, fees, levy, grants or donations; or · . · · (b) yest in or accrue to the Authority; (2) The Authority may-· ( a) accept ·moneys by way <if-grants or donations from any source; (b) raise by way ofloans or otherwise, such moneys as it may require for the discharge orits functions; or (c) charge and collect fees for services provided by the Authority. (3) There shall be paid from the funds oflhc Authority- (aJ the salaries, allowances and loans of.the staff of the Authority; I : . i I I 898 No. 40 of 1996] Na1ional Pen.rion Scheme (b) such reasonable travelling, transport and subsistence allowances for members or members of any committee . of the Authority when engaged on the business of Authority, at such rates as the Authority may determine; and ( c) any .other expenses incurred by the Authority in the performance of its functions. (4) The Authority may invest in such manner as it thinks fit such - of its funds it does not fmmediatcly require for the performance of its functions. - 12 Verify source ↗
The financial year of the Authority shall be the period of
The Authority’s financial year is 12 months long and ends on 31 December each year.
12. The financial year of the Authority shall be the period of twelve months ending on the 3 1st of December, in each year. - 13 Verify source ↗
The Authority shall cause to be kept proper books of
The Authority must keep proper books of account and other records about its accounts.
13. The Authority shall cause to be kept proper books of account and other_ records relating to its accounts. - 14 Verify source ↗
(1) As soon as practicable, but not later than six months
The Authority must send an annual activity report to the Minister within six months after each financial year ends, and the Minister must table it in the National Assembly within 30 days after the first sitting following receipt.
14. (1) As soon as practicable, but not later than six months aflerlhe expiry of each financial year, the Authority shall submit to the Minister a report concerning its activities during such financial year. (2) The report referred to in paragraph(!) shall include infomia tion on the finilncial affairs of the Authority and there shall be appended theretD.-'- F"mancial year Accounts Annual reports ( aJ an au�frcd __ balance sheet; (b) an audited statement of income and expenditure; ·and (c) such otherinformaticin as the Minister·inay require. (3) The Minister shall, not later than thirty days after the first sitting of the National Assembly next after the receipt of the repon referred to in sub-paragraph (l), lay it before the National Assem- b_ly. ,, _... . - SECOND SCHEDULE. . _ (Section IO) Pr,RSONS Ex8MPrr:D FROM Till! PROVISIONS OF T\ffi ACT _ The . following. pt;rsons. shall not be regui_�, to. register as members of the National Pension Scheme: ,·: .· . - ( a) an employed person whose monthly earnings are less than Kl5,000; . (b) the. spou5e: of the employer, (c) a member of the family of the employer who ordinarily resides with the employer; ( d) an employee of an international organisation who is not a citizen of Zambia; ' .i, -. , .. . _. , . . ' National Pension Scheme [No. 40 of 1996 899 (e) an employee of a foreign government who is accorded diplomatic or equivalent status and who is not a citizen of Zambia; {f) a member of the armed forces; and (g) a public officerappointcd before !his Act comes into force and who is on pcnsional:Jlccmploymcnl underthe Public Service Pensions Fund or the Local Authorities Suprannuation Fund. ' -- . .. . - . :�!�. ;-• . ·,..;,, · .. i
Part
PART II
- 3 Verify source ↗
Establishment of National Pension Scheme Authority
This section establishes the National Pension Scheme Authority.
3. Establishment of National Pension Scheme Authority - 7 Verify source ↗
Secretary and other staff
Section title: “Secretary and other staff.”
7. Secretary and other staff PART III NATIONAL PENSION SrnEME - 14 Verify source ↗
Annual report
The text shown is the heading for an annual report section and a list of defined terms.
14. Annual report SECOND SCHEDULE persons exempted from the provisions of the Act. .... _ .. - \ r , . !' . ! 1' i• i• ·I ,. :I/ '.i I; i! it ,. ,, ji ;/ 'l ,. � 880 No. 40 of 1996] National Pension Scheme "pensionable age " means the age of fifty-five years: "pensionable employment " means employment in respect Of which contributions arc payable under this Act: "Secretary" means the person appointed under section seven; " Scheme " means the National Pension Scheme constitute( under section eight; " Vice-Chairperson " means the Vice-Chairperson electc1 under paragraph 1 of the First Schedule; and Cap.513 " repealed Act " means the Zambia National Provident Fund Act. PART II NATIONAi. PENSION SCHEME AUTIIORITY Establish ment uf National Pension Scheme Authority - 3 Verify source ↗
(1) There is hereby established the National Pension Schem1
The National Pension Scheme Authority is established as a body corporate.
3. (1) There is hereby established the National Pension Schem1 Authority, which shall be a body corporate with perpetual succes'. sion and a common seal, capable of suing and being sued in in corporate name, and with power subject ro the provisions of thn Act, to do all such acts and things as a body corporate may by la� do or perform. (2) The provisions of the First Schedule shall apply to th• Authority . Functions of Aulhority - 4 Verify source ↗
( I) The functions of the Authority shall be
The Authority must implement the policy for the National Pe scheme and control and administer the Scheme.
4. ( I) The functions of the Authority shall be- (a) implement the policy relating to the National Pe ··scheme in accordance with this Act; and Powers of Authorily (b) control and administer the Scheme. - 5 Verify source ↗
(!) The Authority shall have power 10
The Authority may subcontract its functions to a suitably experienced consultant, issue directions for the Scheme, and do other acts needed to give effect to the Act.
5. (!) The Authority shall have power 10- ( a) subcontract any of its functions to a consultant ration with proven experience in llie particul being subcontracted; (b) give such directions as it may consider nece. i11g the operations of the Scheme; and (c) do all such other acts and things as are ne effect to the provisions of this Act. Dirc.ctnr Gcncral (2) In the performance of its functions, the subject to the provisions of this Act, not be subje direction of any person or authority. , - 6 Verify source ↗
(I) There shall be a Director-General w
This section establishes a Director-General for the Authority and says the Director-General is responsible for the Authority’s administration.
6. (I) There shall be a Director-General w Executive officer of the Authority and wh control of the Authority, be responsible for tration of the Authority. / 880 No. 40 of 1996] National Pension Scheme " pensionable age " means the age of fifty-five years; " pensionable employment " means employment in respect o/ which contributions arc payable under this Act; " Secretary" means the person appointed under section seven; " Scheme " means the National Pension Scheme constitute/ under section eight; " Vice-Chairperson " means the Vice-Chairperson clecle1 under riaragraph I of the First Schedule; and Cap. 5 1 3 " repealed Act " means the Zambia National Provident Fund;_ Act. Est:1blish� mcnt of National Pension Scheme Authori1y .i · FLinctinns of Authority P()wcrs of Authority t:r� ( Director General PART II NATIONAi. PENSION SCHEME AUTIIORITY - 3 Verify source ↗
(I) There is hereby established the National Pension Scheme
This section establishes the National Pension Scheme Authority as a body corporate with perpetual succession, a common seal, and the ability to sue and be sued.
3. (I) There is hereby established the National Pension Scheme Authority, which shall be a body corporate wit11 perpetual succes sion and a common seal, capable of suing and being sued in iu corporate name, and with power subject to the provisions of thu Act, to do all such acts and things as a body corporate may by Ia,- do or perform. ·• (2) The provisions of the First Schedule shall apply to tlu Authority. - 4 Verify source ↗
(I) The functions of the Authority shall be
The Authority must implement the policy for the National Pension scheme and control and administer the Scheme.
4. (I) The functions of the Authority shall be- (a) implement the policy relating to the National Pcnsim ··scheme in accordance with this Act; and (b) control and administer the Scheme. - 5 Verify source ↗
(I) The Authority shall have power to
The Authority may subcontract functions, issue directions for the Scheme, and do other acts needed to give effect to the Act. It is also protected from control or direction by any person or authority when performing its functions, subject to the Act.
5. (I) The Authority shall have power to- ( a) subcontract any of its functions to a consultant or corpo ration with proven experience in the particular functior being subcontracted; (b) give such directions as it may consider necessary regard ing the operations of the Scheme; and (c) do all such other acts and things as are necessary to givt effect to the provisions of this Act. (2) In the performance of its functions, the Authority shaU subject to the provisions of this Act, not be subject to the control o. direction of any person or authority. - 6 Verify source ↗
(I) There shall be a Director-General who shall be the Chiei
The Director-General is the Authority’s chief executive officer, is responsible for its day-to-day administration under the Authority’s control, is appointed by the Minister for a three-year renewable term, may be re-appointed, may address Authority meetings, and has no vote.
6. (I) There shall be a Director-General who shall be the Chiei Executive officer of the Authority and who shall, subject to th< control of thc Authority, be responsible for the day to day ad minis· !ration of the Authority. ....,) ' <- -�, ,. ,.. ,, L _ I r , , ! ! 1: ;, · I .!/ ·, '.I ,, ii i; \· ; ,, ,. ,, i; i ,, ':f ''' / 'ft ) · 1 ( \ National Pension Scheme [No. 40 of 1996 881 (2) The Director:General shall be appointed by the Mi nister for a 1hrce year renewable term of office and shall be eligible for re- appoimment. (3) The Director-General shall attend meetings of the Authority and may address such meeti ngs but shall have no vote. . Secretary, inspectors and other Slaff Constitution of the National Pension Scheme Benefits under scheme , I - 7 Verify source ↗
( I ) There shall be a Secretary ofU1e Authority appointed by
The Authority appoints the Secretary, other board staff, and inspectors; the Director-General issues inspector identity cards; inspectors may inspect specified records; and obstructing an inspector is an offence.
7. ( I ) There shall be a Secretary ofU1e Authority appointed by the Authority on such 1erms and conditions as the Authority may determine. (2) The other staff o f 1he board shall be appointed by the Au1hority o n such terms and conditions as the Authority may determine. ,;..,- . ·: · " '• (3) The Authority shall appoint inspectors for purposes of this Act. (4) The Director-General shall issue an identity card to each i nspector. (5) A n i nspector shall have power, on production of the identity card issued to him under subsection (4), to inspect any book, register, account, reccipl or any document relating to contributions or to the provision to register or to contribute under this Act are · being compiled with. (6) In inspecting the documents referred to i n subsec.tion (5), the inspectors shall e nsure that the records kept are i n accordance with the provisions of this Act. (7) A ny person who obstructs an inspector appointed under subsection (3) i n the exercise of his du lies WJder this section shall be quilty of a n offence and shall be liable upon conviction to a fine not exceedi ng live hu ndred thousand penalty uni ts or to imprison ment for a term not exceeding three months or to both. PART III NATIONAL PENSION SCHEME
Part
PART III
- 8 Verify source ↗
Constirution of the National Pension Scheme
This section is titled “Constitution of the National Pension Scheme.”
8. Constirution of the National Pension Scheme - 10 Verify source ↗
Vesting of existing fund and funds of lhe Scheme
This section concerns the vesting of the existing fund and the Scheme’s funds.
10. Vesting of existing fund and funds of lhe Scheme - 13 Verify source ↗
Registration of contributing employer
This section is titled “Registration of contributing employer.”
13. Registration of contributing employer PARTIY CoITTRrnlJTTo;-,;s - 14 Verify source ↗
Responsibility for payment of contribution
Section 14 concerns responsibility for payment of a contribution.
14. Responsibility for payment of contribution - 16 Verify source ↗
Treating unpaid contribu1ions as paid
This section is titled “Treating unpaid contributions as paid.”
16. Treating unpaid contribu1ions as paid - 17 Verify source ↗
Refund of contributions paid in error
This section concerns refunds of contributions paid in error.
17. Refund of contributions paid in error PARTY BENEFITS - 18 Verify source ↗
Retirement pension
Section heading on retirement pension and its amount.
18. Retirement pension I 9. Amount of rctiremcn1 pension - 20 Verify source ↗
Duration of retirement pension
The text is a section titled “Duration of retirement pension,” with nearby fragmentary references to invalidity pension and lump-sum payment.
20. Duration of retirement pension Single copies of 1l11s Ac, may be ob1a1ned from the GovernmenI Prin1er, P.O Bnx JOI 36 . .'0100 LusaJ:t:z Price K6500 each. I "¾ I _ _) • !' .l 876 No. 40 of 1996] National Pension Scheme Section Invalidity pension 2 J. Lump-sum payment - 25 Verify source ↗
Duration or invalidity pension
Section title referring to duration or invalidity pension and invalidity lump-sum payment.
25. Duration or invalidity pension Invalidity lump-sum payment 26 - 27 Verify source ↗
Estahlishment or medical boards and appoinunem of
This section heading refers to establishing medical boards and appointing medical officers.
27. Estahlishment or medical boards and appoinunem of medical officers - 37 Verify source ↗
Repayment of benefits improperly received
Section 37 is titled “Repayment of benefits improperly received.”
37. Repayment of benefits improperly received - 39 Verify source ↗
Transactional provisions for benefits
This section is titled “Transactional provisions for benefits” and “Investment of funds.”
39. Transactional provisions for benefits PART VI MANAGEMENT OF SC!!EME Investment of funds - 8 Verify source ↗
(1) There is hereby constituted a Scheme to be k nown as the
A Scheme called the National Pension Scheme is established, and the Authority is its trustee.
8. (1) There is hereby constituted a Scheme to be k nown as the National Pension Scheme i nto which shall be paid all contributions authorised underthis Act and out of which shall be met all payments authorised to be paid under this Act.. (2) The Authority shall be the trustees of the Scheme. - 9 Verify source ↗
( 1 ) The Authority shall pay pension benefits to a member
The Authority must pay pension benefits to qualifying members, may pay lump sum benefits under prescribed conditions, and must pay due benefits on a member’s death.
9. ( 1 ) The Authority shall pay pension benefits to a member who-- , (a) retires from employment on reaching the retirement age; (b) retires live years before he reaches pensionable age and has contributed to the Scheme for a mi nimum period prescribed by y1e Authority; and (c) has made contribulions for at least twelve months and is cenified by the medical board that he is incapable of gai nful employment due to total or partial mental or physical incapacity which pension shall be determi ned by a formula by art actuarial study and prescribed by the Minister by s1a1utory i nstrumenl. C '---__,____. 882 No. 40 of 1996] Nariona/ Pension Scheme Acl No. 5 of 1989 Acl No. 6 of 1 989 Vesting of existing fund and funds of the Scheme Membership of Scheme (2) The Authority may pay lump sum benefits under such conditions as the Authority may prescribe. (3) The Authority shall exchange the lump sum benefits referred to under subsection (I) in accordance with actuarial advice, in such circumstances as may be prescribed. (4) On the death of the member, the Authority shall pay the pension benefits due lo the member in accordance with the provisions of the Intestate Succession Act and the Wills and Administration of Testate Estate Act. - 10 Verify source ↗
( I ) Without further assurance the existing fund shall be
The existing fund is transferred to the Scheme, which vests in the Authority. Eligible persons must be members or be registered as members, and the Minister may set conditions and procedures for otherwise ineligible persons to join.
10. ( I ) Without further assurance the existing fund shall be transferred to the Scheme and shall vest in the Authority which shall, subject to the provisions of this Act, have the sole manage ment and control of it. (2) The funds of the Scheme shall consist of (a) the fund of the existing fund; (b) the assets of the existing fund; ( c) the combined contributions of contributing employers and members detennined by, statutory instrument, in accor dance with actuarial valuation and paid into the Scheme; (d) income and capital appreciation derived from the holding of the assets of the Scheme in any form; and (e) such otber moneys or assets as may accrue to the Scheme. 1 1 . (I) Every person who, before the commencement of this Act, is under pensionable age and is a memberofthe existing fund, shall be a member of the Scheme. (2) Every person who, on the commencement of this Act, is not a member of the existing fund under subsection (]) and is not less than sixteen yeRrs but who is under pensionable age and is em ployed by an contlihutingemployer, shall be registered as a member of the Scheme as provided for under section rhirreen. (3) The Minister may, by statutory instrument, provide for the conditions and procedures under which any person who is not eligible to become a member of the Scheme under this Ac� may become a member. Contributing employer - 12 Verify source ↗
Subject to subsection (2) of section eleven, contributing
This provision defines who counts as a “contributing employer,” subject to section 11(2).
12. Subject to subsection (2) of section eleven, contributing employer shall mean- (a) a person, association, institution or firm registereq as a tax payer with a contract of service with an employee; and (b J the Government of the Republic ofZambia, local.authority or parastatal or statutory body. l .,,J - ' ·� I · ,. ,. l : . !. Ii 1 ·j , / . li 1 ii r.: [' ! : ' i , ,, :,, f: I, ,· l --- . \., ..., -- , , I . (. l National Pension Scheme [No. 40 of 1996 883 - 13 Verify source ↗
Section 13
Contributing employers must register within one month unless already registered under the existing fund.
13. (I) Subject to the other provisions of this Act, every contributing employer shall, within one month, register under this section in the prescribed m anner, unless such employer is registered under the existing fund. Registration of contribut ing employers (2) The employees listed in the Second Schedule shall be exempt from the provisions of this Act and the Minister may, by statutory order, vary the list of employees in the Second Schedule. (3) The. Minister may, by statutory instrument, prescribe the minimum number of employees in the ser,,ice of any employer and the categories to be exempted under this section . .j (4) The period of one month mentioned in subsection ( 1 ) shall, in every case, begin upon the commencement of this Actor the date when the person concerned becomes a contributing employee. (5) On the first day of the month following tl1e month in which the pe,iod mentioned in subsection ( I ) expires, the employee shall be a contlibuting employee for the purposes of this Act unless a ru rthcr pcliod is specified in the statutory order declaring that other categoiies of employers be contlibuting employers. (6) Any employer who belongs to a category of employers exempted under subsection (I) shal.l with the consent in writing of the majority of his employees. apply to the Authority i n the prescribed m anner, 10 register under thi� Act. (7) The Authmity shall notify an employer registered under subsection ( I ) that his application has been approved. (8) An employer registered under subsection (7) shall become a contributing employer on the first day of the month following the month in which such employer receives notification that the em ployer has been registered under this section. (9) A religious organisation which desires to m ake statutory contributions in respect or any minister of religion or any other category of employees may apply to the Authority in the prescribed manner to register under this section. (l 0) The Authority shall notify the religious organisation regis tered as a contributing employer forthe purposes of this Act that the application has been approved. · ( 1 1 ) A religious organisation registered under subsection (9) shall notify U1c Director-General of the prescribed particulars of any minister of religion or any other category of employees in respect of whom it wishes to make contlibutions and shall become an eligible employer on the "first day of the month following the monU1 in which notification is made under this subsection. ( 1 2) A cont1ibu 1ing employer who ceases to be an employer of any employee shall cease to be a contributing employer in respect of such employee. ( 1 3) Any contributing employer who registers or is registered underthe provisions of this section shall, without delay, register, as a member of the Scheme, every person who is or who subsequently becomes an employee in l1is .scr,,icc, by notifying the Director General of such particul Jrs of the employee as may be prescribed. '-------------- 'v c . I l I ' ! l I ,. i l ;: i j_ ' If! " ' i ,, I ' I ' j I i'. r f /' Ii ' i' w I ii ' 1: L � ··- 884 No. 40 of 1996] National Pension Scheme PART IV CONTRIBUTIONS Responsibil ity for payment of contrihulions Payment of comrihutions Treating unpaid contributions as paid Refund of contributions paid in error
Part
PART VI
- 45 Verify source ↗
Action of acturial scheme
Section 45 is titled “Action of acturial scheme” and appears in Part VII (Miscellaneous).
45. Action of acturial scheme PART VII MISCELLANEOUS
Part
PART VII
- 46 Verify source ↗
Vesting of assets and.transfer of liabilities
This section concerns the vesting of assets and the transfer of liabilities.
46. Vesting of assets and.transfer of liabilities - 47 Verify source ↗
Registration of property to be transferred
Section title: Registration of property to be transferred.
47. Registration of property to be transferred - 49 Verify source ↗
Protection against attachment
Section 49 is titled “Protection against attachment.”
49. Protection against attachment • I ! ( J_. ··, f National Pension Scheme [No. 40 of 1996 877 Section - 54 Verify source ↗
Repeal of Cap. 513
This section is titled “Repeal of Cap. 513” and appears to begin a schedule on the administration and composition of an authority.
54. Repeal of Cap. 513 FIST SCHEDULE PART! AnMLNISTRATION I. Composition of Authority - 8 Verify source ↗
Remunerations and allowances ofinembcrs
Section 8 is titled “Remunerations and allowances of members.”
8. Remunerations and allowances ofinembcrs - 10 Verify source ↗
Prohibition of publication of, or disclosure of information of
Section heading about a prohibition on publishing or disclosing information concerning unauthorised persons.
10. Prohibition of publication of, or disclosure of information of unauthorised persons PART II FI�A!'ICIAI. PROVISIO�S - 46 Verify source ↗
On the appointed date, there shall vest in, and be owned by
On the appointed date, the Authority receives the existing fund’s property, rights, liabilities, and obligations without needing further transfer steps.
46. On the appointed date, there shall vest in, and be owned by the Authority without further assurance, all property, rights, liabili ties and obligations which immediately before the appointed date, were the pmpeny, rights, liabilities :ind pbligations of the existing fund. · •·.;;A-,:;; · ; -. '.::. f:;_•_ =�-- · . . . . • . .. . . . 47 • . . (1) All property, rights, ,IiJlW!�� -or obligations of the , existing fund shall be transfe,rred·tg;J!J�/,\!Jthority and where_ aQY ' written law provides for lllgistq!i_o_�i-thJ: A,uQiority shall make_.an application in writing to _ the prqpef:i!l,fficer or the appropriat!<, registration authority for the registration of the transfer. . . . . . �. ·:.. (2) The proper offia:r referred to m subsecuon (I) shall make such entries in the appropriate'registeriis' shall give effect to the transfer arid, where appropriate, iiistle"iheiransferee concerned wifu a certificate to the register;·as:the'C.i!;e'-m'ay- be, and shai! make endorsements on the deeds re1a·tingto,)iieitit1e, right or obligation conccm·ed. ., . . t-.:;G:·;.. . . • . - . . . .:-. ..-..... ,,J-t'-#Jfi�.1�.�::, . '. ·48:_ CO, W(!l)out i;,reju�ise,:W:r!l'/.'.p'ffiii�iyvisions of this Act,_ Legal where•fu:iy right, liability or'obljgaligi\Vi\[isi� the existing furid,.the · proceedings Authority and·aJI other persoi)s;-\isfi\j�e'commericement cifthis· ' Act;· sliall ·have the ·sam'e'''nght:'"tp6wei's:arid remedies (and in particular. the silinc rights as to'tne'insfifiilliig"ordefending oflegai proceedings or the making° <ir.::iesistiilg1,of;:app!ications to any auµ1orjty).for. ;is��ning.,or. ¢orcing;tliose,rights, liabilities or·: obligations !\SJP,_ey,would)1ay,e;_11t,liJJ.ti.iit'i:l.*n a right, !iaqlity o< ob�il;���n. qf, !!J�,��ting_ f'liJ.!,cfJ1_94�r��:,efa:i)ed Act. ' . (2):-.Any legal proceedingS'cirappliclitioiFto any authority pend0 ing immediately before the commencem:entof tllis Act by or against the existing fund in relation to the assets transferred to the Author ity, may.be continued by or against,the authoiity . . (3) After the commmencemeni ot:this Act, proceedings 'in respect of any right or obligations ·which was vested in, held, enjoyed incurred or suffered by the existing-fund may be institu(ed by, o_r against the Authority .. . . . :• . .•);C . •' • t ' • ' ':, • • • • • "' .. . . . . . . .::. .. ":. ·, ':-'.� . .. · ' .•· .· . 892 No.- 40 or t 996] National Pension Scheme Protection against auachment Tnmsfcr of staff Offences and penalties - 49 Verify source ↗
Notwithstanding anything contrary contained in any writ
The Minister may approve employee-transfer arrangements, and transferred staff must not end up worse off in their terms and conditions; prior service must count as service with the Authority for pension and related benefits.
49. Notwithstanding anything contrary contained in any writ ten law, where any judgement or order has been obtained against a member, no execution or attachment or process of any nature shall be issued against his contributions, except in accordance with the-. terms of the Authority and such contributions shall not form pan of lhe assets of the member in the event of bankruptcy. SO. (l) The Minister may, by statutory instrument. approve arrangements under which all or some of the employees of the ·existing_fund shall be transferred to the Authority . . (2) Where a person is transferred in accordance with the ar rangements madf. under subsection (l), his terms and conditions with the Autho_rity shall be no less favourable than those enjoy!!(! while employed by the exislion fund and for the pmpos�s of determining his rights to or eligibility for any pension, gratuity, leave or other benefits, his previous service with the existing fund shall be treated as service with the Authority. - 51 Verify source ↗
(I) Any person who
A person who commits any of the listed acts under this section commits an offence and may be fined up to 1,000 penalty units, jailed for up to 3 months, or both.
51. (I) Any person who- (a] evades paying for any C\)ntribution by him or some other person and makes any false statement or representation; (b) fails to register within the period specified in or under this Act when required to register; ( c) when required by or u�derthls Act to furnish any info�a tion, without Jawful excuse, fails to d�close that information or furnishes information whu:'h is false; (d) fails_to pay to the Sche�e-within the period�pecified any . contribution which h_e is liable to pay. under this Act; (ej obstructs any inspector, officer or servant of the Scheme in . the discharge of his duties; (/) fails without lawful excuk··ro produce documents which he has been required under-this Act to produce; (g) by duress obtains the consent of employees to any cou_rse of action providtd foumder subsection (6) of section thirteen; (h)deductsfrom a member's wages any amount byway of the member's share which is in excess ofihe of-die amount due tq be deducted under this Act; or (i) contravenes any other provision of this Act; shall be guilty of an offence and shall be liable on conviction to a fine not exceeding one thousand penalty units or to imprisonment for a term not exceeding three months or to both . • . . ·/"" ): .:· , . ' ' ,,. ' ,· ,r .I �'· ·. :t\:�':.�' .;:· ... _.. , ·.• : :J· . _, :-:·r.:· National Pension Scheme [No. 40 of 1996 893 (2) Notwithstanding the provisions of subsection (1), the court before which any person is convicted of an offence under this Act may, without prejudice to any civil remedy, order that person to pay to the Scheme the amount of any contributions, together with any interest or penalty, certified to be due from that person to the Scheme at the date of conviction; and such amount shall be . recovered in the same manner as a fine and shall be paid into the Scheme for the credit, where applicable, of the accounts of the members concerned. - 52 Verify source ↗
Any person who contravenes any provision not provtat:d General
Any person who contravenes a provision under the Act commits an offence and may be fined, imprisoned for up to three years, or both.
52. Any person who contravenes any provision not provtat:d General for under this Act shall be guilty of an offence and shall be liable penalty upon conviction to a fine not cxC".eding five thousand penalty units or to imprisonment for a term not exceeding three years or to both . . ( i . . .. , - 53 Verify source ↗
(1) ·The Minister may, by statutory instrument, make regu- Regulations
The Minister may make regulations by statutory instrument for carrying out this Act.
53. (1) ·The Minister may, by statutory instrument, make regu- Regulations la!ions for the better carrying'out'cifprovissions of this Act (2) Notwithstanding suli�ctlon (1), the regulations prescribed under subsection (1) shall p_roviile for-- ·! , ., . . . ;,•.,, ti';·: (b) the time_amfmaniier:of the payment of benefit and ( a) the prevention of th(;·receipt of more than one benefit and the adjustment of benefits in special circumstances: ' . the information tii bifftiinished by any person applying for payment;_ .. ... ,.-,.{·.:,::,_- period when )1�.p;,._, • .. . (c) suspending paymen(ofbenelit to any person during any . - · (i) iiab1ihllfrom·Z:iinbia subject to any contrary . proyisiq!_is?�ntained in• any social . security . • .. r<"bilateriil:agreement or international convention . , .ra�}iedbY:2:ambia; or ., .. ; . ,•·· . . . (ii), is legalt9,imprisoned or under some other legal .\:��tf:.s��_.,_._.j - · . : :, :,·:.Pi:ovided;th_at specifications are prescribed · for the: cin:umstanccs and manner in which . payiiicnfohtie\vhole or any part of the benefi� · may i�d of being so suspended in:iy be paid _durii:ig_agy§Uchperiod to anypersonnomi� · py the 1Jeneliciary, orforthe maintenance of any . presc·n'bed person who the Director-Generai is satisfied is a depel)dent of the beneficiary;• . : ., ·•· ,. .. i.' •. . ( d) appointing a person to exercise on behalf of any other person who, is a-minor is unable to act, any-power or right which that other person may be entitled to exercise under this Act and to authorise the person so appointed to receive and deal with any sum payiinle by way of benefit to thafolher person; . .. \ \ I 894 No. 40 of 1996] National Pension Scheme (e) a claim to be made or proceeded with in the name of any person who is dead, for authorising payment 10· or amoung persons claiming as his or personal representa tives, legatees. next-of-kin, creditors or otherwise and for dispensing with strict proof of title of persons so claiming; and (f) such other matters as inay be necesary for proper adminis tration of bcnefiL�, including th� obligations of claimants, beneficiaries and employers. Repeal of Cap. 513 - 54 Verify source ↗
The National Provident Fund Act is hereby repealed
This section repeals the National Provident Fund Act.
54. The National Provident Fund Act is hereby repealed. FIRST SCHEDULE (Section 3) ADMINISTRATION PART I Composition of the Authority
Part
PART IV
- 14 Verify source ↗
(I) A contributing employer shall pay to the Scheme a
A contributing employer must pay Scheme contributions for employees, and may recover the employer’s share from a member employee by deduction from earnings. An employer may not deduct or reduce a member’s earnings for the employer’s contribution if that would conflict with the rule.
14. (I) A contributing employer shall pay to the Scheme a contribution in re.�pcct of an employee in his employment consist ing of the employer's contribution and the employee's contribution at the prescribed percentage; (2) A contributing employer shall be entitled to recover from his employee who is a member of the Scheme, the amount of the employer's contribution by deduction from his earnings the contri bution relates. (3) Nolwith�tanding any agreement to the contrary, an em ployer shall not be entitled to deduc1 rrom the earnings ofa member or otherwise reduce such earnings as part of the employer's contri bution. (4) The prescribed percentage referred to under subsection (1) shall be determined by actuarial valuation calculated to ascertain the Financial sustainability o f the the Scheme. - 15 Verify source ↗
(1) A contributing employer shall pay contributions to the
A contributing employer must pay monthly contributions to the Authority and submit prescribed supporting details with the payment.
15. (1) A contributing employer shall pay contributions to the Authority at the end of each month and such employer shall submit, with such payment, all prescribed supporting particulars concern ing his identity, period of employment and earnings of the member to whom the cono·ibutions relate. (2) Ir any contribution is not paid within the time stated under subsection (I) a sum equal to twenty per centum of the. amount unpaid shall be added as a penalty for each month or part thereof afterthe date the payment is due and the amount of the penalty shall be recoverable as a debt owing to the Scheme by the employer. - 16 Verify source ↗
Where the Director-General is satisfied that an employee's
If the Director-General is satisfied that an employee’s contribution was deducted but not paid by the employer, the Director-General may treat the unpaid amount as paid for benefit claims.
16. Where the Director-General is satisfied that an employee's contribution has been deducted from his earnings, but the employe'r has failed to pay this contribution together with the employer's contributions to the Authority, he may treat the unpaid contribu lions as wholly or partially paid for the purpose of any claim to i payment ofbcncfils, provided that this shall be without prejudic any action to rccclVer the amount due from the employer. - 17 Verify source ↗
Where the Director-General is satisfied that any
If the Director-General is satisfied that contributions were paid in error, the overpaid amount must be refunded or applied to a current liability with the payer’s consent.
17. Where the Director-General is satisfied that any has been paid to the Authority as contributions which y;e properly payable and that such amount was paid as a result of fide error, the amount paid in error shall be refunded or an any current liabilily with the consent of the person who payment. PART Y BEr<EFITS Conditions for the award of retircmcm pension - 14 Verify source ↗
(I) A contributing employer shall pay to the Scheme a
A contributing employer must pay the required contribution to the Scheme for each employee and may recover the employer’s share from a member employee by deduction from earnings. An employer may not reduce a member’s earnings as part of the employer’s contribution.
14. (I) A contributing employer shall pay to the Scheme a contribution in respect of an employee in his employment consist ing of the employer's contribution and the employee's contribution at the prcse ri bed percentage;/ (2) A contributing employer shall be entitled to recover from his employee who is a member of the Scheme, the amount of the employer's contribution by deduction from his earnings the contri bution relates. (3) Notwithstanding any agreement to the contrary, an em ployer shall not bt entitled to deduct from the earnings of a member or otherwise reduce such earnings as part of the employer's contli bution. (4) The pre.sclibed percentage referred to under subsection (1) shall be determined by actuarial valuation calculated to ascertain the financial sustainability of the the Scheme. - 15 Verify source ↗
( 1 ) A contributing employer shall pay contributions to the
A contributing employer must pay monthly contributions to the Authority and submit prescribed supporting particulars with the payment.
15. ( 1 ) A contributing employer shall pay contributions to the Authority at the end of each month and such employer shall submit, with such payment, all prescribed supporting particulars concern ing his identity, period of employment and earnings of the member to whom the contributions relate. (2) If any contribution is not paid within the time stated under subsection (1) a sum equal to twenty per centum of the. amount unpaid shall be added as a penalty for each month or part thereof aftcrthc date the payment is due and the amount of the penalty shall be recoverable as a debt owing to the Scheme by the employer. - 16 Verify source ↗
Where the Director-General is satisfied that an employee's
If the Director-General is satisfied that an employee’s contribution was deducted but not paid, he may treat the unpaid amount as paid for benefit claims.
16. Where the Director-General is satisfied that an employee's contribution has been deducted from his earnings, but the employer has failed to pay this contribution together with the employer's · contlibutions to the Authority, he may treat the unpaid contribu- tions as wholl y or partially paid for the purpose of any claim to the payment of benefits, provided that this shall be without prejudice to any action to reccwer the amount due from the employer. I I 1,_:_. § · i . - 17 Verify source ↗
Where the Director-General is satisfied that any amount
If the Director-General is satisfied that contributions were paid in error and not properly payable because of a bona fide error, the amount should be refunded or used against a current liability with the payer’s consent.
17. Where the Director-General is satisfied that any amount has been paid to the Authority as contributions which were not properly payable and that such amount was paid as a result a.fa bona fide error, Ll1c amount paid in error shall be refunded or applied to any current liability with the consent of the person who made the payment. PART Y BENEFITS
Part
PART Y
- 18 Verify source ↗
Subject to the other provisions of this Act
A retired member is entitled to have pension paid if they have reached pensionable age and made at least one contribution, subject to the rest of the Act.
18. Subject to the other provisions of this Act pension shall be paid to a retired member who has ( a} attained pensionable age; and (b) made not less than one contributions. / 884 No. 40 of 1996] National Pension Scheme Responsibil ily for paymcnl of l:OntrihULions Payment of conlributiol'l;S Treating unpaid contributions as paid Refund of contributions , paid in error Conditions for 1.hc award of retirement pension " l F if L PART IV CONTRIBUTIONS - 18 Verify source ↗
Subject to the other provisions of this Act, a retirement
A retired member is entitled to a retirement pension if they have reached pensionable age and have at least 180 monthly contributions, subject to the rest of the Act.
18. Subject to the other provisions of this Act, a retirement pension shall be paid w a re tired member who has- 1 ( a) attained pens1onah e age; and (b) made not less than one hundred and eighty monthly contributions. I I ' . . i ;���{ J ,•� ;••- · �-: National Pension Scheme (No. 40 of 1996 885 - 19 Verify source ↗
( 1 ) The Minister shall prescribe the monthly retirement
The Minister must prescribe the monthly retirement pension by statutory instrument using actuarial valuation, and the Authority must determine national average earnings annually using Central Statistical Office data.
19. ( 1 ) The Minister shall prescribe the monthly retirement pension, by statutory instrumenl, based on the actuarial valuation calculaled to ascertain that tl1e Scheme is financially viable. Amount of retirement pension (2) 'fhe average momhly earnings shall be determined for each member at the time he makes a claim dividing the aggregate of pensionable earnings by the number of momhs of pensionable employment. (3) No1withstanding subsection (2), the level of pensionable earnings shall be adjusted annually by an index based on the nalional average earnings as may be prescribed by the Minister, by statulory instrument. (4) The minimum momhly pension shall be twenty per cent of the na1ional average earnings. (5) . The Authority shall determine the national average earnings referred to insubse�tion (3) annually, by applying statistics and data compiled by the Central Statistical Office. - 20 Verify source ↗
The retirement pension payment shall commence from the
Retirement pension payments start the month after the retired employee meets section 18 conditions and stop in the month the retired member dies.
20. The retirement pension payment shall commence from the month following the month in which the retired employee satisfies th" conditions in section eighteen and shall end in the month i n which the retired member dies. - 21 Verify source ↗
A member who has attained pensionable age and has
Some retired members who have reached pensionable age and do not qualify for a pension under section 18 are entitled to a lump-sum payment, which the Authority may prescribe.
21. A member who has attained pensionable age and has retired from employment but docs not meet the qualifications for a pension under section eighteen, shall be entitled to the payment of a lump sum as may be prescribed by the Authority. Duration of retirement pension Lump-sum payment - 22 Verify source ↗
(I) A member shall qualify for ·early retirement i f he is
A member qualifies for early retirement only if they are within five years of pensionable age and have paid contributions for at least 180 months.
22. (I) A member shall qualify for ·early retirement i f he is within five years ofpensionable'age and has paid contributions for at least one hundred and eighty months. Early rc1ircmcmt (2) The amount of the pension paid on early retirement under subsection (I) shall be the amount that would be payable under subsection (1) of section eighteen reduced in accordance with a prescribed actuarial formula. · · Inva]idity pension (3) An early re1irement pension shall not be payabl\: if the amouni of the pension calculated in accordance with the provisipn_s of subsection (2) would be lower than the minimum pension under subscc\ion (4) pf sectiO!) nineteen. .. - 23 Verify source ↗
A member shall qualify for invalidity pension if.-· ·
A member qualifies for invalidity pension only if the member has permanent invalidity, is under pensionable age, and meets the stated contribution requirements.
23. A member shall qualify for invalidity pension if.-· · . ( a) J1c suffers fro_m permanent invalidity; and (b) he. is under pensionab!c age and either- (i) the provisions of �ecti,on eighteen regarding ' ' pension· contributions are satisfied; or . : (ii) the member had paid ':it'Ie�t sixty montjily con� · · tributions of which twelv'e or more vicre paid ·in . the period of thirty-six months· immediately . preceding the date the invalidity began . , · • ;�, /f� ! t ,' ;; t ' I• l ! I I ; ! r , ; t ' i : i : ! I '! ' I ( 886 No. 40 of 1996] National Pension Scheme Amount of invalidity pension - 24 Verify source ↗
(1) The Minisler shall, by statutory instrument, prescribe
The Minisler may set the monthly invalidity pension rate by statutory instrument, using average monthly earnings and pensionable service as the basis. The monthly rate must also be increased by a prescribed percentage, and the minimum monthly invalidity pension is 20% of national average earnings.
24. (1) The Minisler shall, by statutory instrument, prescribe monthly rate of invalidity pension determined on the basis of the members average monthly earnings and the length of pensionable service. (2) The monthly rate of invalidity pension shall be supple mented by a prescribed percentage. (3) The minimum monthly invalidity pension shall be twenty per centum of the national average earnings. - 25 Verify source ↗
Subject to the provisions of this Act, invalidity pensions
Invalidity pensions are payable from the month after invalidity begins and continue while the invalidity is permanent, ending if the member reaches pensionable age with a retirement pension at the same or higher rate, or if the member dies.
25. Subject to the provisions of this Act, invalidity pensions shall be payable for the duration of a permanent invalidity com mencing with the month following the date of invalidity and ending either-- (aJ when the member reaches pensionable age, if at that time the member is entitled to a retirement pension at the same or a higher rate; or (b) when the member dies. - 26 Verify source ↗
A membcrwhp qualifies for invalidity pension but does not
A member who qualifies for invalidity pension but does not meet section 18 conditions is entitled to a lump-sum payment, which the Authority may prescribe.
26. A membcrwhp qualifies for invalidity pension but does not satisfy the conditions under section eighteen, that member shall be entitled to a lump-sum payment as may be prescribed by the Authority. - 27 Verify source ↗
(1) The Authority shall appoint medical boards or appoint
The Authority must appoint medical boards or medical officers to examine benefit claimants and beneficiaries, and the Minister must prescribe the medical board procedure by statutory instrument.
27. (1) The Authority shall appoint medical boards or appoint medical officers for the purpose of examining claimants or benefi ciaries who have claims to any benefits under this Act. (2) A member of the medical board or a medical officer shall be paid such remuneration or allowance as the Authority may deter mine. (3) The procedure for medical boards.guidelines to be followed and reports to be prepared by the medical boards and submitted to the Authority shall be prescribed by the Minister, by statutory instrument. - 28 Verify source ↗
(1) A person shall apply for a claim for invalidity benefits
People must apply for invalidity benefits to the Director-General, who must refer the claim to a medical board.
28. (1) A person shall apply for a claim for invalidity benefits to the Director-General. (2) The Director-General shall refer a claim submitted under subsection (1) to a medical board for determination. (3) The Director-General may, at .my time after the award of an invalidity pension, refer a person who receives an invalidity pen sion to a medical board to determine the medical state of the permanent invalidity. I. Duration of invalidity pension !nvaliility lump-sum payment Establish ment of medical boards and appointment of medical officers Medical examinations ' I I ' , i I i I i . �t," :-:, . ' .. . :· ,;, ��!f�H!�. �� ·\f r .,: _ _. __ ,; .<'°' ,,,_;, U:!,.it..-.:>5� ·: 1 ( ' i I i I j r 1 National Pension Scheme [No. 40 of 1996 887 (4) A claim to invalidity benefit referred to a medical board shall be, in Lhc _prcscribed manner. (5) \ beneficiary of an invalidi1y pension shall cease to receive his invalid pension i f he fails Lo comply wilh directions of the Director-General under subsection (2), to be medically examined by a medical board and 10 supply all necessary documents or infonnalion as maybe necessary forlhc purposes ofdetennininghis continued cntillemcnt. - 29 Verify source ↗
Subjccl to lhis Act, a SU1vivors bencfils shall be paid to a Survivors
Survivors benefits must be paid to a family member or dependant if the deceased member met one of the listed pension conditions.
29. Subjccl to lhis Act, a SU1vivors bencfils shall be paid to a Survivors member of the family or a dcpcndanl i f al the time of death the benefits mcmber-- (a) was in receipt of a retirement pension or an invalidity pension; (b) would have been entitled to an invalidity pension for permanent invalidity at the time of death; or (c) had reached pensionable age and was entitled to a retire ment benefit and had made a claim to such benefit. - 30 Verify source ↗
The following persons shall be regarded as family Family
This section says who counts as a family dependant and states that each family dependant’s pension is payable at a prescribed rate.
30. The following persons shall be regarded as family Family depcndants depend an IS for U1e purpose of section rwemy-nine: (a) a su rviving spouse o f lhc deceased member; (b) a child of the deceased member: or (c) such other persons as may be entitled to benefit under the Intestate Succession Act or Wills and Administration of Testate Estates Act or as nominated by the member. 3 1 . The pension payable to r.ach family dependant shall be at a rate prescribed and payable to Lhc deceased membcrorthe pension lhat would have been payable to him under section eighteen or section rwenty-one. - 32 Verify source ↗
Survivors pensions shall be paid to
Survivors pensions are paid to qualifying surviving spouses and children, with payment periods depending on age, childcare responsibilities, education, and disability.
32. Survivors pensions shall be paid to--- (a) a surviving spouse who, at lhedate of death of the deceased member is fony-five years old or above or is under the age of fony-five and has the care for dependant children under the age of fifteen, for life or until he. ,....'7larriage; (b) a surviving spouse who, at the date of death of the deceased member, is underthe age of forty-five and does not have the care of children under the age of fifteen years, for a period of two years from the date of death of the member; .Act No. 5 of 1989 Act No. 6 of 1989 Survivors pensions Durntion of survivors pensions t ... ; . I I I i , I 888 . No. 40 of 1996] National Pension Schem_e Survivors lump-sum Funeral grants Adjustment of benefits Time and manner Or making claims _ Repayment of benclit improperly receiVcd , ·. Benefit to be inalienable · (c) a child, until the age of eighteen years or until the child completes full-time education but not later than the age of twenty-five or, if the child is an invalid, for life. - 33 Verify source ↗
Where a deceased member did not satisfy the qualifying
If a deceased member did not meet the qualifying conditions in section 26, the member’s family dependants are entitled to a lump-sum payment set by the Minister through statutory instrument.
33. Where a deceased member did not satisfy the qualifying conditions specified in.section twenty-six, his family dependants shall be entitled to a lump-s_um payment prescribed by the Minister · by statutory instrument, - 34 Verify source ↗
(1) On the death ofa member who has paid at least twelve
If a member dies after paying at least 12 monthly contributions in the previous 36 months, a lump-sum funeral grant must be paid to the member’s next of kin. The Minister determines the lump-sum by statutory instrument.
34. (1) On the death ofa member who has paid at least twelve monthly contributions during the thirty�six Il]Of]ths immediately preceding his death,.a fonera) gr.µ1t iQ the form of a lump-sum shall be paid to his next of kin. · (2) The lump-sum. referred to under subsection (1) shall be determined by the Min!sterbystatut<iry instrument. . · . I . • • • .• (3) For the purpose 9f tll_i,s_��tion, _th_e next of kin shall be the surviving spouse, or; 1n·thc case of an unmanied person, the father . or mother, brother or·'sistcf"o"f the person . ri:"sponsiblc for the • payment of funeral expenses .. _ - 35 Verify source ↗
The Authority shall fovievl th�pensioirrlites annually a_nd
The Authority must review pensions every year and adjust them to match increases in national average earnings.
35. The Authority shall fovievl th�pensioirrlites annually a_nd adjust them in line with in�ases in national average earnings. - 36 Verify source ↗
(1) A person shallhave·;the right to benefits i f he
A person has a right to benefits if they make a claim to the Director-General in the prescribed way and time and provide required supporting documents and evidence.
36. (1) A person shallhave·;the right to benefits i f he- . . . . (a) makes·a claim .to -theDirector-General in the prescribed manner wii))il!,"@¾'.p�s9:i_be�.till]e;_ ru;i.d .. .. . .,... __ ,.· ' . ' . , . . . . · . . ,' · , . , · ,; •,� ., · �:\:<;!.,'.f• c ·. , .' ;' : (b) _prodpces s\l.�!t-911��-Ce�•.Aqciµµ,�nts: i�fo�ati�n and evrden�e (o(th,c,-.purp,<Js�. of .detenmnmg his nght to benefits as'ilili'·tiirectiir:denei"al may require . . • (2) The contributingemplo.yershall maintain records, or repoits and such other infonnation as maybe prescribed by the Minister by . statutory instiiimet1t'fofihetpuipose ofestabljshirlg aiiy'person'.s entillemendo anyb'enefits?1. •'·'-"' · ;· . ·. ' - 37 Verify source ↗
· (1)- "Any-person· who ·fails to. disclose or m/srepresent any
A person who withholds or misrepresents a material fact and receives benefits they were not entitled to must repay those benefits; the Authority may recover them by deducting amounts from later payments or benefits.
37. · (1)- "Any-person· who ·fails to. disclose or m/srepresent any , material fact, whether such non-disclosure pr misrepresentation .is : oi-is not fraudulent and receives liny·benefits he was not entitled to �e .b.t;1.1efi15 so,receiv.ed . re�iv� sl_Jall_ be lia�le. to repay . :� ... ·:r•:·c: -· . . ,. . ( .. ·. .·· p • . • . • . •. • • • • • . (2) · Any person liable -to repay any -benefits received under subsection (!) shall · repay the bertelits · and the · Authority shall recover by deducting from -any payment or-benefit to which· the person refe�dtp in subsection,()) is entitle<), • =-- - . . 38 •. Every assignment-o�charge on benefits.and every agree ment ti;> assign or charge .anJ -benefH shall ·be-void, .and on the IiariJa:uptcy of a bem,fici;iiy the,benelit shall_ not.pass to. any trustee . . . or.oth�r person actiiig ori behalf of creditors. . •• , : . - . . , - . . . • . National Pension Scheme [No, 40 of 1996 889 - 39 Verify source ↗
The Minister may by statutory instrument prescribe
The Minister may make a statutory instrument to prescribe transitional provisions about benefit qualification, conversion of account amounts into pensionable employment, and transfer of pensionable employment from earlier pension legislation.
39. The Minister may by statutory instrument prescribe- · T=itional provisions ( q) ihe conditions for qualifications forentitl�mentto benefits for bencfilS -· : · under this Part in respect of embers who are above a prescribed age on the day the Act comes into force; (b) that member of the existing fund may convert the amount in their account under that fund into pensionable em ployment for the purpose of entitlement to retirement pension or invalidity pension in a�rdance with a prescribed formula; or {c) the transfer of i:,ensionable employrnent:in �ct of persons covered under other pension ,legisll\tiOn before ·the date of commencement of this Act.' .'PART VI · · · .• \ ,..::_ . · MANAGEMENT OF SCIIEME . . - -- - . . Management objectives of Scheme Act No. of J996 Investment of Fund - 40 Verify source ↗
(I) The Authority shall prudentially manage.the.Scheme si,
The Authority must prudently manage the Scheme so it remains actuarially correct, financially sustainable, fair in distributing benefits, and affordable.
40. (I) The Authority shall prudentially manage.the.Scheme si, as to ensure that at all times it is in a state of actuarial correctness, -financially sustainable,' fair in its benefit distribution -and is afford- · · able. . (2) .Notwithstanding the generality of subsection (1), ·the _Authority shall ensure _Iha� the Scheme is manag«;d, in accordance . with the prudential management principles �cified_in th_e Pension Scheme Regulation Act; ·1996. , . - 41 Verify source ↗
The Authority may-invest any liquid ass6tfofifie:Scheme
The Authority may invest surplus liquid assets not immediately needed for the Scheme in listed forms of investment, and may approve other investments.
41. The Authority may-invest any liquid ass6tfofifie:Scheme not immediately requi.�, to_10ee� an:r,.�ames otp�lig�tions in-- · ( a) a savings accobnt-,of, any ,oanlCodnstitiitioii which is govem�d by 3?.Y.writteI! law. of�bi�,?i;�:r,.tlle law of the Umted •Kingdom · of Great- Bntam ,:and ,Northern ileposiior at call wiiii aiiysiicli b'ank . Ireland, oronfiii:ei -> :··r· . . . . . f ·,,;;:,·,,_.i-;•; ,• . or institutiort;J-',_-;,;-(:•· : .: : ,; : ' . , ' (b) real estate; · · . .. ,. � _ :-f•.• ;t · �- ,. • r;.,,• : f (c) stocks, securities:oi'fiinds"issued by or'of , . " ,_.: . . . ,�_""-:" •·• · _ ' ' · . � + • · ' - -· ' • belialf of the Government or in stocks; securities or fi/hc!�'guaranteed by the Goveminent; o_r _. . ,., ·· . · , · �0 ,. • ' ' •, • - · , . .. ..,_ , , .. _. . • (d) such other'investinent-ils niay be approved generally or specially, by the Authority. - 42 Verify source ↗
There shall be charged on;and discharged f!om, the liquid
The Scheme’s liquid assets are to be used for benefits, administration costs, losses, and any other payments authorised by the Act.
42. There shall be charged on;and discharged f!om, the liquid assets of the Scheme- , . • . . . ( a) the paymeni of benefits in accordance with the provisions ApPiication of Funds of Scheme of this Act; -�;, .. ._, ... Iif . �- . . . . -· � . ' I �� ....... \°'!. ·,-- 1r�- 890 No. 40 of 1996] National Pension Scheme (b) the whole of the expenses incurred in connection with or incidental to the management and administration of the Scheme, including the cost of staff and the audit and actuarial investigations _of the Scheme; (c) any losses incurred on the realisation or decrease in the value ·or any assets of the Scheme; and (d) any other payments authorised to be made out of the . Scheme under the Pll/Visions of this Act. Appointment of actuary Acruarial valm1.tion of sChcmC: . , 43. The Authority shall appoint any actuary who shall be a FeUow of 'the Institute of. Actuaries of London, the Faculty of Actuaries in Scotland or Jnsl,itµte. of Actuaries of America or any other equivalent quaiifications to. carry ·out the duties and exercise the powers imposed or conferred upon him under this Act - 44 Verify source ↗
(l) The Scheme shall be valued by an actuary as may be
The Scheme must be valued by an actuary at least every three years, and the actuary must report on its state and any deficiency to the Authority and the Minister.
44. (l) The Scheme shall be valued by an actuary as may be required by the-Authority. (2) The Scheme sh.all be valued at i_�tervals not exceeding three years. . (3) 1Jle actuary shall-._ . . ' i ·1 4 · (a) .prepare a report 'on ·the state·of the Scheme; (b) �tale Jny �ipl��'i,r. defi�iency in the Sche'aie; and (cJ·recommend the.action to be taken. , . . � ' . . .. . . . ( 4) The actuiuyshall subniit'the report prepared under subsection Action on actuarial rcpon :. .. . . ,... {3.l to the Authority,withca copy·to· the Minister. . . \·-, ' ' . . -. :,' 4s: (t) The Autliority �hii!i pay' <lue �gain to_ any re.commenda- tions: made by the· actuary"under.secticinjorty:four and,'in doing so may; notwithkindiniranything contrary to the contrary contained · in this Act- ' -·- ' ' (a) increase or dee� in_the rates pf contribution payable in . . ' . respect of members: oi . (b} require members to pay such sums as the actuary may determine to cover any deficiency directly attributable to an action· of such m_ember. . . . . . . _(2) The Authority shall report'to the Minister its reasons fo1 failing to carry out any recommendations made by the actuary. -· (3) If, within six months of -the receipt cif a report by the Authority, the Authority fails to carry out any recommendation contained in such report, the Minister may, exercise any of the • .,.' ' J,, National Pension Scheme [No; · ,io of 1996 891 powers conferred on the Authority by subsection (I), �d 'ihe exercise of such powers by the Minister shall have the same effect as if such powers was exercised by the Authority. PART VII MISOll.J.ANEOUS Vesting of assets"and transfer of liabilities Registratfon of property ro be tramferred . / I
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National Pension Scheme Act, 1996
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