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Vanuatu Sessional Legislation |
Commencement: 28 December 1998
REPUBLIC OF VANUATU
VANUATU NATIONAL PROVIDENT FUND
(AMENDMENT NO. 2) ACT
NO. 23 OF 1998
Arrangement of Sections
1. Amendment of section 1.
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REPUBLIC OF VANUATU
Assent: 28/12/98
Commencement: 28/12/98
VANUATU NATIONAL PROVIDENT FUND
(AMENDMENT NO. 2) ACT
NO. 23 OF 1998
An Act to amend the Vanuatu National Provident Fund Act [CAP. 189] ("the Principal Act").
BE IT ENACTED by the President and Parliament as follows:
AMENDMENT TO SECTION 1
(a) by adding after paragraph (d) of the definition of employee the following paragraphs:
"(e) is a member of a cooperative society and is employed by that society; or
(f) is a shareholder or director of a company registered in Vanuatu and is employed by that company;";
(b) by inserting in the appropriate alphabetical position, determined on a letter-by-letter basis, the following definitions:
""managed funds" means moneys belonging to the Fund that are managed by the Funds Manager;";
""transfer date" means the date determined by the Minister under subsection 16B(1);"
(c) by inserting after "otherwise" in the definition of remuneration the following ", and includes any payment by way of a bonus or an incentive to an employee whether or not that payment is made on a regular basis to the employee".
AMENDMENT TO SECTION 3
(a) by deleting subsection (1) and substituting the following subsection:
"(1) The Board shall consist of:
(a) six members appointed by the Minister and who shall be:
- (i) two persons nominated by the President of the Vanuatu Chamber of Commerce on the advice of the Council of the Vanuatu Chamber of Commerce; and
- (ii) two persons representing employees (and who must be employees) one of whom is to be elected by the Public Service Association and one of whom is to be elected by the National Union of Labour; and
- (iii) two persons representing the Government (one of whom must be a public servant at the level of director or above) nominated by the Minister after consultation with the Director-General of the Ministry of Finance and Economic Management, and the Director-General of the Ministry of the Prime Minister; and
(b) the General Manager, ex-officio member.";
(b) by inserting "(2A)," after "subsections" in subsection (2);
(c) by inserting after subsection (2) the following subsection:
"(2A) A person must not be appointed as a member under paragraph (1)(a) if he or she:
(a) is a member of Parliament;
(b) is an officer or employee of the Fund;
(c) has been convicted of an offence and sentenced to imprisonment for 3 months or longer;
(d) is an undischarged bankrupt or is insolvent;
(e) has any financial or other interest that is likely to affect prejudicially the discharge of his or her duties as a member of the Board; or
(f) if the person has a professional qualification - the body or authority responsible for that profession has suspended or disqualified the person from practising and that suspension or disqualification is in force.";
(d) by omitting "or" from paragraph (3)(d);
(e) by inserting after paragraph (3)(e) the following paragraphs:
"(f) has become a member of Parliament;
(g) has become an officer or employee of the Fund;
(h) has become an undischarged bankrupt;
(i) has failed to make a disclosure in accordance with section 7A; or
(j) if the person has a professional qualification - the person has been suspended or disqualified from practising by the authority or body responsible for that profession.".
AMENDMENT TO SECTION 7
"(1) Subject to subsections (1A) and (1B), the Board shall meet at least 4 times in any 12 month period.
(1A) The Board shall not meet more than once every month.
(1B) The Chairman of the Board shall convene a meeting if he or she receives a written request signed by at least 4 members.".
INSERTION OF NEW SECTION
"DISCLOSURE OF INTERESTS
7A. (1) A member must upon appointment to the Board fully disclose all financial and other personal interests, including all other board memberships and directorships. The Board must maintain a register of Board members’ interests in which those particulars must be recorded.
(2) Without limiting subsection (1), a member must fully disclose upon his or her appointment to the Board, in respect of himself or herself and his or her immediate family, interests in the following:
(a) land and other property (except the family home and personal effects);
(b) vehicles (except one family vehicle);
(c) shares in public or private companies;
(d) income;
(e) liabilities (except liabilities relating to the family home and personal effects);
(f) directorships in corporations;
(g) directorships or other offices held in unincorporated bodies;
(h) gifts received of a value greater than VT20,000;
(i) any assets acquired or disposed of during the past twelve months;
(j) any liabilities acquired or discharged during the last twelve months;
(k) assets held outside Vanuatu;
(l) a trust.
(3) On the anniversary of a member’s appointment to the Board, the member must make the disclosure required by subsections (1) and (2).
(4) A member of the Board who has a direct or indirect financial or personal interest in a matter being considered, or about to be considered, at a meeting of the Board must, as soon as possible after the relevant facts have come to his or her knowledge, disclose the nature of the interest at the meeting.
(5) A disclosure under subsection (4) is to be recorded in the minutes of the meeting of the Board and the member concerned must not:
(a) be present during any deliberation of the Board in relation to that matter; or
(b) take part in any decision of the Board in relation to that matter.".
AMENDMENT TO SECTION 8
"(1A) A person shall not be appointed as the General Manager unless the person:
(a) has a degree from a recognised tertiary institution in one or more of the following:
- (i) business administration;
- (ii) accounting, commerce, economics or law;
(iii) another field of study relevant to the office of General Manager; and
(b) has at least 5 years experience in a senior financial management position.".
AMENDMENT TO SECTION 11
"A member must be paid a sitting allowance of VT 5,000 per day or part day (as the case may be) for attending meetings of the Board.".
AMENDMENT TO SECTION 16
INSERTION OF NEW SECTIONS
"APPOINTMENT OF FUNDS MANAGER
16A. (1) The Board shall appoint a Funds Manager who meets the criteria set out in subsections (2) and (3).
(2) The criteria are that the Funds Manager:
- (a) is a body corporate; and
- (b) manages other investments that total at least 500 million United States dollars based on the most recent published market valuation of the investments; and
- (c) has in place a system which allows market valuation of all investments under its management on a daily basis; and
- (d) reports to its clients at least once every three months on the performance of investments; and
- (e) has a history of at least five years of financially prudent management in the funds management business; and
- (f) has in place sound risk management processes.
(3) The Board must not appoint a Funds Manager unless the Board is satisfied of the credit worthiness of the Funds Manager.
(4) The Board may, in writing, determine additional criteria for the purposes of subsection (2).
FUNDS MANAGER TO MANAGE ONE HALF OF FUNDS
16B. (1) The Board shall forward one half of the moneys belonging to the Fund to the Funds Manager on a date to be determined in writing by the Minister.
(2) The Funds Manager shall manage the moneys in accordance with the criteria set out in subsection (3).
(3) The criteria are:
(a) investment in a fund, or a combination of funds, which produces an expectation (see subsection (4)) that:
(i) the value of the managed funds (net of new funds) will not decrease below their value at the time of investment by the Funds Manager in terms of the equivalent United States dollars; and
(ii) the accretion in value of the managed funds (net of new funds) will produce a real rate of return (see subsection (5)) of not less than 3% per annum or such higher rate as is agreed to by the Board and the Funds Manager; and
(b) such other criteria as the Board determines in writing.
(4) The expectation shall be based on the performance of the asset values of the fund or funds concerned measured on average over the preceding five years and shall have a probability of 99%.
(5) The real rate of return is to be calculated in terms of the Vanuatu VATU by reference to the Government Consumer Price Index.
(6) If the Funds Manager is of the opinion that it is not possible to comply with any of the criteria in subsection (3), the Funds Manager shall provide to the Board its reasons in writing.
(7) If the Board considers the Funds Manager’s reasons are reasonable, it may agree to extend the measurement period in subsection (4) to a maximum of ten years and vary any of the other criteria, other than the 3% per annum referred to in subparagraph (3)(a)(ii).
BOARD MAY WITHDRAW MANAGED FUNDS
16C. If the Funds Manager fails to perform to a standard that is acceptable to the Board, the Board may, by giving at least two days and not more than fourteen days written notice to the Funds Manager, withdraw all of the managed funds from the Funds Manager without penalty.
BOARD TO ENTER INTO CONTRACT WITH FUNDS MANAGER
16D. (1) The Board shall enter into a written contract with the Funds Manager for the management of the managed funds.
(2) Without limiting the contract, it shall:
- (a) contain the criteria referred to in subsection 16B(3); and
- (b) set out the reporting obligations of the Funds Manager to the Board; and
- (c) contain such other matters as the Board considers necessary.
(3) The Board and the Funds Manager must enter into the contract before the transfer date.
BOARD TO ADVANCE FUNDS TO FUNDS MANAGER
16E. (1) The Board shall, in accordance with subsection (2), forward to the Funds Manager one half of all of the moneys that are collected by the Board under this Act on or after the transfer date.
(2) The Board shall forward the moneys to the Funds Manager within 14 days after:
- (a) the end of the first six month period after the transfer date; and
- (b) the end of each succeeding six month period.
(3) The Funds Manager shall manage the moneys in accordance with the criteria referred to in subsection 16B(3).".
AMENDMENT TO SECTION 25
"(1) Subject to subsections (2) and (3), on each occasion remuneration is paid to an employee to whom this Act applies a contribution to the Fund shall be paid;
(a) if the remuneration is paid on or after 1st January 1999 and on or before 31st December 1999 - at a rate of 6 percent of that remuneration of which half shall be payable by the employer and half shall be payable by the employee; or
(b) if the remuneration is paid on or after 1st January 2000 and on or before 31st December 2000 - at a rate of 8 percent of that remuneration of which half shall be payable by the employer and half shall be payable by the employee; or
(c) if the remuneration is paid on or after 1st January 2001 - at a rate of 12 percent of that remuneration of which half shall be payable by the employer and half shall be payable by the employee.".
AMENDMENT TO SECTION 26
10. Section 26 of the Principal Act is amended:
(a) by deleting the number "2" in subsection (2) and substituting the number "5";
(b) by deleting from paragraph (2)(a) the words "payable shall be VT50" and substituting the words "payable shall be VT100.".
INSERTION OF NEW SECTION
"CERTAIN MEMBERS FUNDS USED TO SATISFY DEBTS
44A. (1) This section applies to a scheme established by the Board to provide educational or micro loans to members, being a scheme that is in existence when this section commences.
(2) If:
(a) the Board has made an advance of money to a member under the scheme; and
(b) the member owes a debt to the scheme; and
(c) the debt is a consequence of the member’s participation in the scheme;
all or any part of the amount standing to the credit of the member in the Fund shall be liable to be attached, sequestrated or levied upon, for, or in respect of, the debt.
(3) This section applies despite any other provision of this Act.".
AMENDMENT TO SCHEDULE
"SCHEDULE
(section 1)
EXCEPTIONS
(1) Any child under the age of 14 years as defined in the Employment Act [CAP. 160].
(2) Any person who is not a citizen of Vanuatu and has privileges extended to him or her under the Diplomatic Privileges and Immunities Act [CAP. 143].
(3) Any outworker.
- (4) Any person detained in prison, approved school, mental hospital or leper asylum.
- (5) Any person who is temporarily employed in agriculture or forestry as an individual or as the leader of a gang working collectively and who at the time of engagement in such employment is not expected to be employed for more than 2 months.
However, if the engagement of an individual exceeds 2 months, he or she ceases to be excepted from the start of the third month of the engagement.".
COMMENCEMENT
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URL: http://www.paclii.org/vu/legis/num_act/vnpfn2a1998454