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Provident Fund Act - Provident Fund (Benefit) (Amendment) Regulations 1999

LAWS OF TUVALU

PROVIDENT FUND ACT 1984 (Cap.86)

LN 09 /99

PROVIDENT FUND (BENEFIT) (AMENDMENT) REGULATIONS 1999

Short Title, Commencement and Interpretation

1. (1) These regulations may be cited as Provident Fund (Benefit) (Amendment) Regulations 1999.

(2) These regulations shall come into operation on a date to be appointed by the Minister by notice

(3) In these regulations, "The Regulations" means the Provident Fund (Benefit) Regulations 1984.

Amendment of regulation 8

2. Regulation 8 of the Regulations is amended-

(a) by deleting from sub-regulation (1) the words "permanently retires from employment" and substituting the words "retires from employment and does not elect to take a retirement pension in lieu of the whole of the retirement benefit";

(b) by deleting from sub-regulation (2)(b) the word "permanently"; and

( c) by adding the following new sub-regulations-

"(3) Subject to these regulations retirement benefit shall be payable to a member on attaining the age of 65, whether or not retirement has taken place, if the member does not elect to take a retirement pension in lieu of the whole of the retirement benefit.

(4) For the purpose of sub-regulation (3) a claimant for retirement benefit shall furnish-

(a) evidence of age; and

(b) his membership identity card.

Amendment of regulation 9

3. Regulation 9 of the Regulations is repealed and replaced by

Retirement Pension Conditions

9.(1) Subject to these Regulations, retirement pension shall be payable to a member who, being not less than the age of 45 years, retires from employment and elects to take a retirement pension in lieu of part or all of the retirement benefit.

(2) Subject to these Regulations, retirement pension shall be payable to a member on attaining the age of65, whether or not retirement has taken place, who elects to take a retirement pension in lieu of part or all of the retirement benefit.

(3) An election to take a retirement pension will not be recognised unless-

(a) it is made on an approved form within one calendar month of the date of retirement, or within such longer period, not exceeding three months, as the Manager may in special circumstances allow;

(b) evidence of the member's age in the form of a birth certificate is produced; and

(c) the pension is not less than $30 per month.

(4) A member may elect to take-

(a) a pension payable only for the lifetime of the member; or

(b) a pension as described in Schedule II which may continue after the member's death until the death of the spouse to whom the member was married at retirement.

(5) Evidence of marriage is required before an election to take a pension which may continue to a spouse can be recognised.

(6) The rates of pension payable in lieu of each $1000 retirement benefit are shown in Schedule ll.

(7) Pensions are payable on the last day of each month, the first payment being on the last day of the month in which the member retires and the final payment being on the last day of the month in which the member or the spouse dies." Amendment of regulation 12

4. Regulation 12 of the Regulations is amended by deleting "permanently" in sub-regulations (1) and (2) (a).

Amendment of regulation 13

5. Regulation 13 is amended by adding the following new sub-regulations-

"(3) A claimant to a death benefit may elect to take a pension in lieu of part or all of the death benefit.

(4) An election to take a pension under sub-regulation (3) will not be recognised unless-

(a) the claimant has attained the age of 45 years;

(b) the election is made on an approved form within one calendar month of the date of death of the member or within such longer period, not exceeding three months, as the Manager in special circumstances may allow;

(c) evidence of a claimant's age in the form of a birth certificate is produced; and

(d) the pension is not less than $30 per month.

(5) The rates of pension payable in lieu of each $1000 of death benefit are shown in columns (1) and (3) of Schedule II.

(6) The pension shall be payable on the last day of each calendar month for the lifetime of the claimant, the first payment being made on the last day of the month in which the member died and the final payment being made on the last day of the month in which the claimant dies." New regulations 14A and 14B

6. The following are added to the regulations-

Conditions for Drawing Housing Benefit

"14A. Subject to these conditions housing benefit shall be payable to a member who is eligible under the following conditions:

1) The benefit withdrawn shall be specifically for the purpose of constructing or renovating of a members own private house.

2) Only members who's personal account cash balance exceed $20,000 are eligible.

3) Up to a maximum of 50% of a members cash balance may be drawn, provided the members cash balance does not exceed $40,000.

4) A minimum $10,000 and a maximum $20,000 housing benefit can be paid to anyone member.

5) The housing benefit shall be made payable only once during a members working life.

6) Only members who have attained the age of 45 years, are eligible for housing benefit.

7) A house plan or construction plan must be supplied.

8) Production of membership identity card.

14B. Benefit as security for National Bank of Tuvalu or Development Bank of Tuvalu loans".

New regulations 20 and 21

7. The following are added to the regulations

"Pensions generally

20. (1) A pension once entered into may not be commuted for a lump sum.

(2) The Manager may from time to time require a certificate in an approved form concerning the survival of the pensioner. If a satisfactory certificate is not submitted within one month, payment of the pension may be discontinued and only resumed if a certificate containing satisfactory evidence of survival is received.

(3) If as a result of seeking a certificate of survival or otherwise, it is discovered that the pensioner has died and that a person other than the pensioner has been receiving pension payments since the death of the pensioner, the Manager may take action at law to recover the payments made since the death of the pensioner together with interest at the rate last declared in accordance with section 10 of the Tuvalu National Provident Fund Act.

(4) The Board may recommend to the Minister that the rates of pension shown in Schedule II be amended or that pensions in the course of payment be allowed a bonus or increased (in addition to any increases in accordance with regulation 21) provided that no such bonus or increase shall be approved by the Minister unless it has the prior approval of an actuary.

21. Indexation of Pensions

(1) Subject to sub-regulations (2) and (3), pensions in course of payment shall be increased with effect from the first day of January in each calendar year by a percentage (P) calculated according to the following formula: P = 100 x (0.4 x A/B + 0.6 x C.D) - 100 Where A = the All Items Index according to the Funafuti Consumer Price Index for the previous August; B = the All Items Index according to the Funafuti Consumer Price Index for the August one year earlier: C = the All Items Index according to the Australian Consumer Price Index (Seven Capital Cities) for the previous September; and D = the All Items Index according to the Australian Consumer Price Index (Seven Capital Cities) for the September one year earlier; and P is calculated to the nearest first decimal place. Provided that –

(i) If the percentage is negative or positive but less than 1.0, no change shall be made in pensions until the following year when "one year' in the definitions of B and D above shall be replaced by "two years;" and

(ii) If the calculated percentage (P) is greater than 10.0, a percentage of 10.0 shall be applied.

(2) Subject to sub-regulation (3), where a pension has commenced due to retirement since 1 January in the previous year the percentage shall be reduced by the ratio which the number of months pension actually paid bears to twelve, except that where the adjusted percentage is less than 1.0 no change shall be made.

(3) Where no change to pensions was made in the previous year because the percentage was then negative or positive but less than 1.0, and where a pension has commenced due to retirement since 1 January one year before the previous year, the percentage shall be reduced by the ratio which the number of months pension actually paid bears to 24, except that where the adjusted percentage is less than 1.0 no change shall be made". Amendment of Schedules

8. (1) The Schedule to the Regulations is amended by numbering it as "Schedule I"

(2) The following is added as

Schedule II

MONTHLY PENSION PER $1000 RETIREMENT OR DEATH BENEFIT

The amounts shown in the table below are the initial pensions per month in lieu of each $1000 of retirement or death benefit where the pension is payable.

a) in the case of column (1) and (3), for the lifetime of the member or claimant; and

b) in the case of columns (2) and (4) (which do not apply to a death benefit),

for the lifetime of a member and subsequently for the lifetime of the surviving spouse to whom the member was married at the time of retirement at the rate for 50% of the pension which had been paid to the member.

Age at Male Members Female Members Retirement

(1)
(2)
(3)
(4)

$
$
$
$

45
6.32
5.92
6.08
5.90

46
6.38
5.96
6.13
5.94

47
6.44
6.00
6.18
5.99

48
6.51
6.04
6.24
6.03

49
6.58
6.09
6.30
6.08

50
6.65
6.14
6.36
6.14

51
6.73
6.19
6.42
6.20

52
6.82
6.25
6.49
6.26

53
6.91
6.31
6.57
6.33

54
7.01
6.37
6.65
6.40

55
7.11
6.44
6.74
6.47

56
7.23
6.52
6.83
6.55

57
7.35
6.60
6.93
6.64

58
7.48
6.68
7.03
6.73

59
7.62
6.79
7.15
6.83

60
7.76
6.87
7.27
6.94

61
7.92
6.97
7.40
7.06

62
7.08
7.08
7.55
7.19

63
7.26
7.19
7.71
7.33

64
7.45
7.32
7.88
7.48

65
8.65
7.45
8.07
7.64