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.

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 sets out how the Authority is made up, who appoints its members and officers, and how its seal is kept and authenticated.

Members serve a three-year term, may resign with notice, and the Authority can manage meetings and remove members under stated conditions.

This provision sets how meetings of the Authority work, including quorum, who presides, voting, invited participants, and minutes.

The Authority may establish committees, delegate functions to them, appoint their members, and decide how long members hold office.

The Authority may set remuneration and allowances for its members or committee members, but only with the Minister’s approval.

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.

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.

The Authority may accept donations, borrow money, charge fees for its services, and invest surplus funds.

The Authority’s financial year is 12 months long and ends on 31 December each year.

The Authority must keep proper books of account and other records about its accounts.

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.

This section establishes the National Pension Scheme Authority.

Section title: “Secretary and other staff.”

The text shown is the heading for an annual report section and a list of defined terms.

The National Pension Scheme Authority is established as a body corporate.

The Authority must implement the policy for the National Pe scheme and control and administer the Scheme.

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.

This section establishes a Director-General for the Authority and says the Director-General is responsible for the Authority’s administration.

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.

The Authority must implement the policy for the National Pension scheme and control and administer the Scheme.

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.

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.

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.

This section is titled “Constitution of the National Pension Scheme.”

This section concerns the vesting of the existing fund and the Scheme’s funds.

This section is titled “Registration of contributing employer.”

Section 14 concerns responsibility for payment of a contribution.

This section is titled “Treating unpaid contributions as paid.”

This section concerns refunds of contributions paid in error.

Section heading on retirement pension and its amount.

The text is a section titled “Duration of retirement pension,” with nearby fragmentary references to invalidity pension and lump-sum payment.

Section title referring to duration or invalidity pension and invalidity lump-sum payment.

This section heading refers to establishing medical boards and appointing medical officers.

Section 37 is titled “Repayment of benefits improperly received.”

This section is titled “Transactional provisions for benefits” and “Investment of funds.”

A Scheme called the National Pension Scheme is established, and the Authority is its trustee.

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.

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.

This provision defines who counts as a “contributing employer,” subject to section 11(2).

Contributing employers must register within one month unless already registered under the existing fund.

Section 45 is titled “Action of acturial scheme” and appears in Part VII (Miscellaneous).

This section concerns the vesting of assets and the transfer of liabilities.

Section title: Registration of property to be transferred.

Section 49 is titled “Protection against attachment.”

This section is titled “Repeal of Cap. 513” and appears to begin a schedule on the administration and composition of an authority.

Section 8 is titled “Remunerations and allowances of members.”

Section heading about a prohibition on publishing or disclosing information concerning unauthorised persons.

On the appointed date, the Authority receives the existing fund’s property, rights, liabilities, and obligations without needing further transfer steps.

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.

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.

Any person who contravenes a provision under the Act commits an offence and may be fined, imprisoned for up to three years, or both.

The Minister may make regulations by statutory instrument for carrying out this Act.

This section repeals the National Provident Fund Act.

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.

A contributing employer must pay monthly contributions to the Authority and submit prescribed supporting details with the payment.

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.

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.

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.

A contributing employer must pay monthly contributions to the Authority and submit prescribed supporting particulars with the payment.

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.

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.

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.

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.

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.

Retirement pension payments start the month after the retired employee meets section 18 conditions and stop in the month the retired member dies.

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.

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.

A member qualifies for invalidity pension only if the member has permanent invalidity, is under pensionable age, and meets the stated contribution requirements.

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.

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.

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.

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.

People must apply for invalidity benefits to the Director-General, who must refer the claim to a medical board.

Survivors benefits must be paid to a family member or dependant if the deceased member met one of the listed pension conditions.

This section says who counts as a family dependant and states that each family dependant’s pension is payable at a prescribed rate.

Survivors pensions are paid to qualifying surviving spouses and children, with payment periods depending on age, childcare responsibilities, education, and disability.

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.

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.

The Authority must review pensions every year and adjust them to match increases in national average earnings.

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.

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.

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.

The Authority must prudently manage the Scheme so it remains actuarially correct, financially sustainable, fair in distributing benefits, and affordable.

The Authority may invest surplus liquid assets not immediately needed for the Scheme in listed forms of investment, and may approve other investments.

The Scheme’s liquid assets are to be used for benefits, administration costs, losses, and any other payments authorised by the Act.

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.