Pension Scheme Regulation (Amendment) Act, 2005

This section sets up the Pensions and Insurance Authority Board, gives the minister power to appoint the Chairperson and Vice-Chairperson, and bars certain people from Board appointment.

This provision sets out how the Registrar is appointed and what the Registrar must do, and it also amends pension scheme trust and trustee rules.

This section amends wording in section 9(2) and adds a requirement that an applicant provide any other information the Registrar considers necessary for deciding the application.

A scheme cannot be registered under the Act unless it is set up under an irrevocable trust, the rules protect sponsors and members, and the trustees meet appointment requirements, except for schemes established by written law.

This section amends the principal Act by adding the words “single-employer trust or” after “separate” and removing the phrase “or alternatively be affiliated to such a trust” after “multi-employer trust”.

This section amends subsection (3) of section thirteen by replacing the word “manager” with “trustee” wherever it appears.

Section 10 repeals section fourteen of the principal Act and replaces it with a new section.

A certificate of registration for a scheme is valid from the date it is issued and stays in force until the scheme is deregistered or wound up, subject to the rest of the Act.

People may apply to the Board to register as a pension fund manager, administrator, or custodian, but they must be registered and hold a valid certificate before acting. The Board must consider applications, register qualified applicants on payment of the fee, issue certificates, and give written reasons for refusals.

A person cannot be registered as a manager, administrator, or custodian unless the listed company, capacity, history, and 51% Zambian ownership requirements are met.

Registered managers, administrators, or custodians must keep a principal office in Zambia, give the Registrar its address, and report address changes within three months.

Registered managers, administrators, and custodians must get the Registrar’s approval before appointing a chief executive officer and provide specified personal and qualification details.

A defined benefit scheme must do actuarial valuations on the stated schedule, and the Minister may regulate minimum interest rates for portable benefits on the Board’s recommendation.

This provision amends section 19 of the principal Act by deleting specific words.

This section amends section 20 of the principal Act by replacing “A manager” with “The board of trustees”.

This provision amends subsection (5) of section 21 of the principal Act by adding “or trustee” after “manager.”

Section 22 is amended by replacing “A manager” with “The board of trustees.”

A person who contravenes subsection (6) must pay a late submission penalty of 1,000 fee units for each day the annual report is late.

This provision amends subsection (2) of section 24 by replacing the word “manager” with “trustees.”

This section amends the principal Act by repealing section 25 and replacing it with a new section.

Trustees may invest only in investments approved by the Registrar; pension funds must not make unsecured loans to affiliated employers; secured loans to employers are capped at five per centurn of total assets.

Trustees must prepare quarterly returns on pension fund investments and give them to the Registrar within 14 days after each quarter ends.

Section 27 of the principal Act is amended by replacing “a manager” with “any trustee”, changing punctuation after “scheme”, and deleting the proviso.

This section amends section 28 of the principal Act by replacing references to "the manager" with "the trustees" in several subsections.

Section 29 of the principal Act is amended to replace references to “manager” with “trustees” in several subsections.

This section appears to amend another provision by inserting the word “trustees” after section 29.

The Board may impose a levy on pension fund net assets or insurance premiums, with Ministerial approval, and the Minister may prescribe the levy rate by statutory instrument.

This provision amends section thirty of the principal Act by replacing the words “Amanager” with “The trustees, administrator or manager”.

This provision amends the principal Act by inserting a new section immediately before section 30.

Employers must remit pension contributions to a pension fund within 30 days after month-end, or they must pay interest and a daily penalty.

Section 32 is amended to insert “administrator or trustee” after “manager”.

The Board may deregister a pension scheme on the Registrar’s recommendation if the manager has breached the Act, regulations, or pension plan rules, or if the scheme is wound up under regulations prescribed by the Minister on the Board’s recommendation.

This section amends section 34 of the principal Act by replacing “Registrar” with “Board” and “his” with “its” in the specified subsections.

This provision amends section 35 of the principal Act by replacing the word “Registrar” with “Board.”

Section 36 is amended so that the word “Registrar” is replaced with “Board” wherever it appears.

A person aggrieved by certain Board refusals or decisions may appeal to the Minister within 30 days. A director or officer who consented to or connived in an offence by a manager, administrator, or custodian is treated as having committed the offence and may be fined, imprisoned, or both.

The principal Act is amended by inserting a new section immediately after section 42.

Each inspector must provide the Board with inspection reports and other information the Board directs.

The principal Act is amended by inserting new sections after section 44.

After the appointed date, any reference to the Registrar of Pensions and Insurance in written law or other legal documents must be treated as a reference to the Registrar appointed under section 7.

The Registry Office’s affairs, property, rights, and obligations transfer to the Authority on or after the appointed date, subject to the Act.

When property, rights, liabilities, or obligations are deemed transferred to the Authority, the Authority must apply in writing for registration, and the registration authority must update the register and related records.

This section lets the Authority and other persons use the same rights, powers, and remedies needed to confirm or complete rights or liabilities vested in the Authority, and it lets certain Registry Office proceedings continue or start against or by the Authority.

The Board must appoint necessary Registry Office public officers as Authority officers on or after the appointed date, with the Minister’s approval.

This provision adds a new schedule about the Authority’s administration, including who controls the seal and who may authenticate or use it.

A Board member serves for three years, may be re-appointed once for another three years, and may stay on for up to three months after expiry until a successor is appointed. The office becomes vacant in specified circumstances.

If a member’s office becomes vacant before the term ends, the Minister may appoint a replacement, who serves only for the remaining term.

The Board can manage its own procedure, and the Chairperson controls meeting notices, special meetings, and some meeting logistics.

The Board must appoint a Deputy Registrar, Secretary and other necessary staff, and the Deputy Registrar must meet stated qualifications.

The Board may invest unused Authority funds, but only with the Minister’s approval.

The Authority’s financial year must be 12 months long and end on 31 December each year.

The Board must keep proper books, annual accounts records, and related records; the Authority’s accounts must be audited annually by independent auditors approved by the Minister; and the Authority must pay the auditor’s fees.

The Board must send the Minister a yearly activity report within 180 days after the financial year ends, and the Minister must table that report in the National Assembly within 7 days after its first sitting following receipt.