National Pension Scheme (Occupational Pensions) Act 1998

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National Pension Scheme (Occupational Pensions) Act 1998
NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

1

BERMUDA
1998 : 36

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

[Date of Assent 17 July 1998]

[Operative Date 17 May 1999 Sections 2, 54 – 64, 69 & Second Schedule;
1 January 2000 Remainder Sections]

ARRANGEMENT OF SECTIONS

PART I
PRELIMINARY

1 Citation and commencement
2 Interpretation
3 Restrictions on application of

Act

PART II
ESTABLISHMENT, REGISTRATION ,

ADMINISTRATION, AND
MEMBERSHIP, OF PENSION PLANS

4 Obligation of employers to
establish and maintain
pension plans

5 Applications for registration

6 Pension plans to be
administered by
administrators

7 General responsibilities of
administrators

8 Duty of employer to provide
information to administrator

9 Contents of documents
establishing pension plan and
pension fund

10 Accrual of pension benefits
11 Amendment of pension plan

and registration of
amendments

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

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12 Power of Commission to refuse
to register or to cancel
registration, etc.

13 Duty of administrator to
provide information to
members, etc.

14 Annual statement of pension
benefits

15 Statement of benefits on
termination of employment or
on ceasing to be a member

16 Access to documents in
custody of administrator

17 Eligibility for membership

PART III
FUNDING AND CONTRIBUTIONS

18 Funding
19 Contributions

PART IV
VESTING AND RETIREMENT

20 Normal retirement age
21 Early retirement
22 Vesting
23 Portability

PART V
LOCKING-IN OF CONTRIBUTIONS

AND BENEFITS

24 Restrictions on refunds
25 Void transactions
26 Exemption from execution,

seizure or attachment
27 Commutation or surrender
28 Exceptions to general

restrictions

PART VI
BENEFITS

29 Ancillary benefits
30 Survivor benefits on death

after pension commences
31 Survivor benefits on death

before pension commences
32 Minimum aggregate benefits
33 Effect of remarriage of

surviving spouse
34 Variation of payment to

disabled persons
35 Small pensions
36 Information for payment of

pension
37 Prohibition of discrimination

on the basis of sex

PART VII
WINDING UP

38 Winding up
39 Appointment of winding up

administrator
40 Report on winding up
41 Regulation of pension plan

being wound up
42 Notice of entitlements
43 Determination of entitlement
44 Liability of employer on

winding up
45 Pension fund continues

subject to the Act and the
regulations

46 Surplus

PART VIII
SALES, TRANSFERS AND NEW

PLANS

47 Continuation of benefits under
successor employer

48 Adoption of new pension plan

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
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PART IX
ORDERS AND ADVICE BY

COMMISSION

49 Orders by Commission
50 Advice by Commission as to

conformity

PART X
HEARINGS AND APPEALS

51 Hearing in certain cases
52 Appeals to Supreme Court
53 Regulations relating to

hearings and appeals

PART XI
THE PENSION COMMISSION

54 Establishment of Pension
Commission

55 Members of the Commission
56 Functions of the Commission
57 Officers and employees of the

Commission
58 Chief Executive Officer
59 Protection from personal

liability

60 Funds of the Commission
61 Power to order information

and reports
62 Accounts and audit
63 Budget
64 Annual Reports

PART XII
GENERAL

65 Power of entry, search, etc.
66 Extension of time
67 Offences, penalties and orders

for payment
68 Offences by bodies corporate
69 Regulations
70 Reciprocity with other

countries
71 Repeal, etc.

FIRST SCHEDULE
Contribution Rates

SECOND SCHEDULE
Procedure, etc. of Pension

Commission

WHEREAS it is expedient to make provision for a mandatory
pensions system for Bermuda:

Be it enacted by The Queen's Most Excellent Majesty, by and
with the advice and consent of the Senate and the House of Assembly of
Bermuda, and by the authority of the same, as follows:

PART I
PRELIMINARY

Citation and commencement
1 This Act may be cited as the National Pension Scheme
(Occupational Pensions) Act 1998 and shall come into operation on such
date as the Minister may, by Notice published in the Gazette, appoint;

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

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and the Minister may appoint different days for the coming into
operation of different provisions of this Act.

Interpretation
2 (1) In this Act, unless the context otherwise requires—

"account balance" in respect of a member means the market
value of all employer contributions and member
contributions, if any, plus earnings thereon;

"actuary" means a person who has qualified as an actuary by
examination of the Institute of Actuaries in England, the
Faculty of Actuaries in Scotland, the Societies of Actuaries in
the United States of America or the Canadian Institute of
Actuaries, and who is a current member in good standing of
one of those professional associations;

"additional voluntary contribution" means a contribution to the
pension fund by a member of the pension plan beyond any
amount that the member is required to contribute;

"administrator" means the person or persons that administer the
pension plan;

"affiliated employer" has the meaning given in subsection (2).

"Bermudian" means having Bermuda Status within the meaning
of the Bermuda Immigration and Protection Act 1956;

"Commission" means the Pension Commission established by
section 54;

"commuted value" for the purpose of determining the lump sum
amount that is equivalent to a pension or a benefit, means
the value of the pension or benefit calculated in the
prescribed manner and as of a fixed date;

"contributory benefit" means a pension benefit or part of a
pension benefit to which a member is required to make
contributions under the terms of the pension plan;

"deferred pension" means a pension benefit, payment of which is
deferred until the beneficiary reaches normal retirement age
under the pension plan;

"defined benefit" means a benefit determined in advance with
reference to various factors including level of earnings and
length of employment and a "defined benefit pension plan"
means a plan providing such a benefit;

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

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"defined contribution benefit" means a benefit that is deter-
mined solely with reference to, and is provided by,
accumulated contributions made by or for the credit of a
member together with the investment yield of such
accumulated contributions and that is determined on an
individual account basis; and "defined contribution pension
plan" means a pension plan providing a defined contribution
benefit;

"disabled" in relation to a member means unable because of a
physical or mental condition to perform most or all of the
tasks related to that member's employment;

"document" includes any information held or kept by electronic
means;

"employee" means a person who is employed by an employer;

"employer" means a person, including an individual, who
employs Bermudians or spouses of Bermudians and includes
a self-employed person;

"financial institution" means—

(a) a bank licensed under the Banks Act 1969;

(b) an insurer registered under the Insurance Act 1978;

(c) a local trust company licensed under the Trust
Companies Act 1991; or

(d) any other company which is approved by the
Commission for the purposes of this Act;

"financial institution pension plan" means a pension plan
established by a financial institution and approved by the
Commission to offer a defined-contribution pension plan for
individuals, whether employees or self-employed;

"financial year" in relation to the Commission, means, in respect
of the first accounting period of the Commission, a period
starting from the date that this Act comes into operation and
ending on the thirty-first day of December of the same year,
and for any subsequent accounting period, the period of
twelve months ending on the thirty-first day of December;

"fiscal year" in relation to a pension plan or a pension fund
means the fiscal year of that pension plan or, as the case may
be, that pension fund;

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ACT 1998

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"former member" means a person who has terminated
employment or membership in a pension plan and—

(a) is entitled to a deferred pension payable from the
pension fund;

(b) is in receipt of a pension payable from the pension fund;
or

(c) is entitled to receive any other payment from the pension
fund;

"member" means a member of a pension plan;

"multi-employer pension plan" means a pension plan established
and maintained for employees of two or more employers who
contribute or on whose behalf contributions are made to a
pension fund in accordance with an agreement between the
employers, but does not include a pension plan where such
employers are affiliated or a financial institution pension
plan;

"Minister" means the Minister of Finance;

"normal retirement age" means the normal retirement age
specified in section 20;

"pension" means a pension benefit that is in payment;

"pension benefit" means the periodic payment due to a person in
accordance with the rules of a pension plan;

"pension fund" means the fund maintained to provide benefits
under or related to the pension plan;

"pension plan" means an occupational retirement scheme
organized and administered to provide pensions for
employees, or a financial institution pension plan;

"pensionable earnings" means the member's remuneration
including basic salary, overtime payments, commissions and
bonuses, on which the calculation of the contributions or the
retirement benefits are based;

"prescribed" means prescribed by regulations;

"registration" means registration under this Act;

"regulations" means regulations made under this Act;

"retirement product" means such pension plan other than a
pension plan referred to in this Act as may from time to time
be prescribed;

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"self-employed person" means a Bermudian over school leaving
age, or the spouse of a Bermudian, whose earnings (otherwise
than in the capacity of an employee) derive from his
production (in all or part) of goods or services in Bermuda, or
his trade in goods or services in or from Bermuda;

"spouse" means either of a man and woman who—

(a) are married to each other; or

(b) are not married to each other (or to any one else) and are
living together in a conjugal relationship which has
existed for more than two years;

"statutory contribution rate" means the contribution rate set out
in the First Schedule to this Act;

"surplus" means the excess of assets over liabilities in a pension
fund both calculated in the prescribed manner;

"termination" in relation to employment, includes retirement and
death;

"trade union" has the same meaning as in the Trade Union Act
1965;

"trustee" means a trustee of a pension plan;

"wind up" means in relation to a pension plan, the termination of
a pension plan and the distribution of the assets of the
pension fund.

(2) For the purposes of this Act, one employer is affiliated with
another employer only if both employers are companies and—

(a) one of them is the subsidiary of the other; or

(b) both are subsidiaries of the same company; or

(c) each of them is controlled by the same person.

Restrictions on application of Act
3 (1) This Act does not apply to—

(a) the Public Service Superannuation Fund established by
section 10A of the Public Treasury (Administration and
Payments) Act 1969;

(b) the Pension Fund established under section 3 of the
Contributory Pensions Act 1967 and continued under
section 3 of the Contributory Pensions Act 1970;

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(c) the Ministers and Members of the Legislature Pensions
Fund established under section 8 of the Ministers and
Members of the Legislature (Salaries and Pensions) Act
1975; or

(d) persons required to contribute to a fund referred to in
paragraph (a), (b) or (c).

(2) The requirements of this Act and the regulations shall not
be construed to prevent the registration or administration of a pension
plan and related pension fund that provide pension benefits or ancillary
benefits more advantageous to members and former members than those
required by this Act and the regulations.

PART II
ESTABLISHMENT, REGISTRATION, ADMINISTRATION, AND

MEMBERSHIP, OF PENSION PLANS

Obligation of employers to establish and maintain pension plans
4 (1) Subject to the provisions of this Act, every employer shall,
in relation to his employees—

(a) if, immediately before the commencement of this Act
there is in existence a pension plan, continue and
maintain the plan in accordance with this Act;

(b) if, immediately before the commencement of this Act
there is no pension plan in existence—

(i) establish and maintain a pension plan in
accordance with this Act; or

(ii) participate in a financial institution pension
plan;

(c) where he is so required under the provisions of this Act,
make contributions to a pension fund of the pension
plan;

(d) in any case referred to in paragraph (a) or (b)(i), apply to
the Commission for the registration of the plan under
this Act within the relevant period specified in
subsection (2).

(2) An employer shall apply for the registration of a pension
plan—

(a) in respect of a plan established on or after the date that
this Act comes into operation, within the period of one

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

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hundred and eighty days after the establishment of the
plan; or

(b) in respect of a plan in existence immediately before the
date that this Act comes into operation, within one year
after such date.

(3) An employer who provides a pension plan by participating
in a financial institution pension plan shall, within the period of ninety
days after the date on which this Act comes into operation, file with the
Commission, in the prescribed form, proof of such participation.

(4) Where—

(a) an application for the registration of a pension plan has
been made within the relevant period specified in
subsection (2); or

(b) a pension plan is in the process of being wound up,

subsection (1) shall not be construed as prohibiting the administration of
a pension plan before the application is finally determined by the
Commission or, on appeal from the decision of the Commission, by the
Supreme Court or for the purpose of winding up the plan, as the case
may be.

Applications for registration
5 An application for registration shall be made to the Commission
in the prescribed form and shall be accompanied by—

(a) the documents establishing the pension plan and the
related pension fund, as provided for in section 9;

(b) the name, occupation, qualification and address of each
person constituting the board of trustees or the name
and address of the employer or other body that
administers the pension plan;

(c) the name and address of each person responsible for
holding the assets of the pension fund;

(d) such other document or information relating to the
pension plan as the Commission may require;

(e) the prescribed fee.

Pension plans to be administered by administrators
6 A pension plan is not eligible for registration unless it is
administered by an administrator, and such administrator shall be—

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
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(a) the employer, whether an individual or a body corporate
or unincorporate;

(b) a joint committee composed of one or more
representatives of the employer or employers
participating in the pension plan and one or more
representatives of the members or former members of
the pension plan;

(c) a committee wholly consisting of members or former
members of the pension plan;

(d) a person or group of persons or entity which by virtue of
this Act or any other law, is vested with responsibility for
the administration of a pension plan or pension fund;

(e) a financial institution; or

(f) any other person approved by the Commission.

General responsibilities of administrator
7 (1) The administrator of a pension plan shall ensure that the
pension plan and the pension fund are, at all times, administered in
accordance with—

(a) the documents establishing the pension plan and the
pension fund as approved by the Commission for the
registration or the continued registration of the pension
plan;

(b) this Act and the regulations; and

(c) the best standards of management designed to protect
and promote the interests of the members and of any
other person eligible for, or entitled to, receive payments
from the pension plan.

(2) The administrator shall exercise the care, diligence and skill
in the administration and investment of the pension plan and the
pension fund that a person of ordinary prudence would exercise in
dealing with the property of another person.

(3) The administrator of a pension plan shall—

(a) within six months after the end of a fiscal year of a
pension plan, submit to the Commission, an annual
information report on the pension plan in the form
prescribed by regulations;

(b) within six months after the end of a fiscal year of a
pension fund, submit to the Commission, the financial

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
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statements of the pension fund as prescribed by
regulations; and

(c) in relation to—

(i) a pension plan which provides defined benefits,
within six months after the expiration of every
three fiscal years of the pension plan, submit to
the Commission a report prepared by an
actuary; or

(ii) a pension plan which provides defined
contribution benefits, within six months after
the expiration of every three fiscal years of the
pension fund, submit to the Commission a
report prepared by an accountant, an actuary,
or a person who is authorized by a financial
institution and who is independent of the
administrator.

(4) The administrator of a pension plan may appoint an agent
to perform any function on his behalf.

(5) The provisions of this Act and of the regulations relating to
the duties and responsibilities of an administrator shall apply to any
other person authorised by or under this Act to perform any of the duties
or to discharge any responsibility of an administrator in the same
manner as they apply to an administrator; and an administrator shall
take such steps as he considers appropriate to ensure that, in respect of
such other person, those provisions are complied with.

Duty of employer to provide information to administrator
8 An employer shall provide the administrator of a pension plan
with any information required by the administrator for the purpose of
complying with the terms of the pension plan or this Act or the
regulations.

Contents of documents establishing pension plan and pension fund
9 The documents establishing a pension plan and its related
pension fund, shall set out the following information—

(a) the objects for which the pension plan is established,
and the rules governing the administration of the
pension plan and the pension fund;

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
ACT 1998

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(b) the method by which the documents establishing the
pension plan and pension fund may be amended;

(c) the method of appointment and removal of the
administrator and the holder of the pension fund;

(d) the powers and duties of the administrator, including
the power to delegate the administration of the pension
plan to another person;

(e) the conditions for membership in the pension plan;

(f) the benefits and rights that are to accrue upon
disability, termination of employment, termination of
membership, retirement or death;

(g) the normal retirement age under the pension plan;

(h) the requirements for entitlement under the pension plan
to any pension benefit and ancillary benefit including
the vesting schedule for the pension plan;

(i) the contributions or the method of calculating
contributions under the pension plan;

(j) the method of determining benefits and ancillary
benefits payable under the pension plan;

(k) the method of calculating interest or earnings to be
credited to contributions or benefits payable under the
pension plan;

(l) the mechanism for payment of the cost of administration
of the pension plan and the pension fund;

(m)the mechanism for establishing and maintaining the
pension fund;

(n) the circumstances in which the pension plan may be
wound up and the method by which the assets of the
pension fund are to be allocated consequent on such
winding up;

(o) the method for allocation of gains and losses in a defined
contribution plan;

(p) the types of investments to be made and the allocation of
investment income;

(q) the obligation of the administrator to provide members
with information, and documents required by or under
this Act, to be disclosed;

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(r) the method of receiving or transferring a member's
accrued pension benefit from or to other pension plans;

(s) the treatment of surplus during the existence of the
pension plan and on the winding up of the pension plan;

(t) particulars of any predecessor pension plan under which
members of the pension plan may be entitled to benefits;
and

(u) such other information as may be prescribed by
regulations or required by the Commission.

Accrual of pension benefits
10 The Commission shall not register a pension plan where—

(a) the pension plan does not provide for the accrual of
pension benefits in a gradual and uniform manner; or

(b) the formula for computation of the employer's
contributions to the pension fund or, in the case of a
defined benefit pension plan, the benefits provided
under the pension plan, are variable at the discretion of
the employer.

Amendment of pension plan and registration of amendments
11 (1) An amendment of a pension plan which seeks to reduce
accrued benefits is void.

(2) Where a pension plan is amended, the administrator shall,
within ninety days after the date on which the pension plan was
amended, and in the prescribed manner, apply to the Commission for
registration of the amendment.

(3) If the amendment is in conformity with the provisions of the
pension plan, this Act and the regulations, the Commission shall, upon
payment of the prescribed fee, register the amendment.

(4) An amendment to a pension plan which is registered under
subsection (3), may be given effect from a date earlier than the date of its
registration but the amendment shall not have any effect until an
application for registration has been filed.

Power of Commission to refuse to register or to cancel registration,
etc.
12 (1) Subject to the provisions of this Act relating to hearings and
appeals, the Commission may—

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(a) refuse to register a pension plan that does not comply
with this Act and the regulations made thereunder;

(b) cancel the registration of a pension plan if at any time
after registration, the plan does not comply or is not
administered in accordance with this Act and the
regulations;

(c) refuse to register an amendment to a pension plan if the
amendment or the pension plan as sought to be
amended would result in the pension plan ceasing to
comply with this Act and the regulations.

(2) A refusal of the Commission to register a pension plan or a
decision of the Commission to cancel the registration of a pension plan
terminates the pension plan with effect from the date specified by the
Commission and where the registration of a pension plan is refused or
cancelled, the pension plan shall be wound up in accordance with this
Act and the regulations.

Duty of administrator to provide information to members, etc.
13 Subject to any regulations for the purposes of this section, the
administrator of a pension plan shall provide in writing to each person
who is eligible or is required to become a member of the pension plan—

(a) an explanation of the provisions of the pension plan that
apply to that person;

(b) an explanation of the person's rights and obligations in
respect of the pension plan; and

(c) any other information prescribed by the regulations.

Annual statement of pension benefits
14 The administrator of a pension plan shall provide annually or at
such shorter periods as are specified in a pension plan, to each member,
a written statement containing the prescribed information in respect of
the pension plan, the member's pension benefits or account balance and
any ancillary benefits.

Statement of benefits on termination of employment or on ceasing
to be a member
15 Where a member of a pension plan terminates employment with
his employer or otherwise ceases to be a member, the administrator shall
give to the member, or to any other person who as a result becomes
entitled to a payment under the pension plan, a written statement
setting out—

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(a) the prescribed information in respect of the pension
plan;

(b) in the case of a defined benefit plan, the member's
expected benefits at his normal retirement date;

(c) in the case of a defined contribution plan, the amount of
money standing to the member's account;

(d) in the case of a defined benefit plan, the commuted
value of the expected benefits as determined by an
actuary;

(e) any ancillary benefits.

Access to documents in custody of administrator
16 (1) If any of the following persons makes a written request to
the administrator for the inspection of any documents and information
relating to a pension plan and the pension fund, namely—

(a) a member;

(b) a former member;

(c) the spouse of a member or a former member;

(d) any other person entitled to pension benefits;

(e) an agent authorised in writing by a person mentioned in
paragraphs (a), (b), (c) or (d);

(f) a representative of a trade union that represents
members of the pension plan,

the administrator shall make those documents and information available
to him without charge and permit that person to make extracts or to
copy them at his own expense or, if a copy is made available to him by
the administrator, upon the payment of such reasonable fee as the
administrator may determine.

(2) A person mentioned in subsection (1) is entitled to inspect,
at the offices of the Commission during business hours of the
Commission, the documents that comprise the pension plan and the
pension fund and other documents relating to the pension plan or the
pension fund and, upon payment of the prescribed fee, to copies of those
documents.

(3) The administrator may, before making available the
requested information, require the person to provide information
establishing his entitlement to see the information.

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(4) Notwithstanding subsection (1), the administrator shall not
make available personal information that relates to a member or former
member without the consent of that member or former member, or that
member's or former member's legal representative.

(5) Notwithstanding subsection (2), a person shall not be
permitted to inspect documents or personal information that relates to a
member or former member without the consent of that member or former
member, or that member's or former member's legal representative.

Eligibility for membership
17 (1) Subject to subsections (2) and (3), every employee of a
category of employees for whom a pension plan is established or is on
the date that this Act comes into operation, in existence, shall be eligible
to be a member of the pension plan.

(2) Except as otherwise provided by or under this Act, an
eligible employee shall, by virtue of this section alone, be a member of a
pension plan if—

(a) he is twenty-three years old or more; and

(b) he has completed seven hundred and twenty or more
hours of employment with the employer to whom the
pension plan relates in any given calendar year prior to
membership in the pension plan,

and, subject to the provisions of this Act, his membership of the pension
plan shall continue until he attains the normal retirement age.

(3) Where a person is employed by more than one employer, he
shall be enrolled as a member of each pension plan for which he has met
the criteria set out in subsection (2).

(4) A member of a pension plan does not cease to be a member
by reason only that he is employed for fewer than seven hundred and
twenty hours in a calendar year.

PART III
FUNDING AND CONTRIBUTIONS

Funding
18 (1) A pension plan shall not be eligible for registration under
this Act unless it provides for funding sufficient, on the date of its
registration or on some other future date as may be determined by
Commission in each particular case, to provide the benefits and rights
under the pension plan in accordance with this Act and the regulations.

NATIONAL PENSION SCHEME (OCCUPATIONAL PENSIONS)
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(2) The administrator of a pension plan shall, if so required by
the Commission, submit to the Commission information in writing to
show either that the pension plan has sufficient funding or that it has in
force a programme which, when implemented, will enable it to provide
sufficient funding as required under subsection (1).

(3) All assets of a pension plan shall be received and held in a
distinct fund, separate from the assets of the employer by—

(a) a financial institution;

(b) a trust in Bermuda governed by a written trust
agreement under which the trustees are—

(i) a financial institution; or

(ii) three or more individuals approved by the
Commission to be trustees, either for a
particular pension fund or generally for pension
funds established or maintained under this Act,
such persons being persons who, in the opinion
of the Commission, have the necessary
experience and expertise to be pension fund
trustees;

(c) a person, or group of persons, or an entity, which under
or by virtue of any other law is made responsible for
holding the assets of a pension fund; or

(d) any two or more of the institution, trustees, persons or
entity, as the case may be, referred to in paragraphs (a)
to (c).

Contributions
19 (1) Subject to subsections (2), (3), (4) and (5), a member of a
pension plan and his employer shall both contribute equally to the
pension fund of the pension plan for the benefit of that member from the
date of membership in the plan at the rates and dates specified in the
First Schedule thereafter and at such intervals as may be prescribed in
the regulations.

(2) Notwithstanding subsection (1), an employer may, in
respect of any or all of his employees, contribute to the pension fund
amounts representing both the amount required to be contributed by the
employer and a part or the whole of the amount required to be
contributed by the employee.

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(3) Notwithstanding the rates prescribed in the First Schedule,
a member may make additional voluntary contributions to the pension
fund in accordance with the rules of the pension plan but no such
additional contribution shall be construed as imposing an obligation on
the employer to contribute to the pension fund an amount exceeding the
amount specified in that Schedule in respect of the employer's
contribution.

(4) Notwithstanding the rates prescribed in the First Schedule,
an employer may make contributions in respect of a member to the
pension fund in accordance with the rules of the pension plan that
exceed the contributions required to be made in the First Schedule, but
no such additional contribution shall be construed as imposing an
obligation on the member to contribute to the pension fund an amount
exceeding the amount specified in that Schedule in respect of the
member's contribution.

(5) The employer shall, at least once in every month, withhold
from the member's earnings the relevant amount of the member's
contribution and pay the same within thirty days following the month in
which the amount was withheld, together with the employer's
contribution, directly into the pension fund.

(6) The administrator and any person authorized by subsection
18(3) to receive contributions under a pension plan shall immediately
give written notice to the employer and to the Commission of any
contribution that is not paid to the pension fund when due.

(7) No administrator or person authorized by subsection 18(3)
or an agent of such person is in breach of any duty to which he is
otherwise subject by reason of his communicating in good faith to the
Commission, whether or not in response to a request made by it, or by
reason of any obligation under subsection (6), any information or opinion
on any matter of which he becomes aware and which may affect the fair
and proper administration of a pension plan or pension fund.

(8) The Minister may, from time to time, by order subject to the
affirmative resolution procedure vary the rates specified in the First
Schedule.

(9) Where a member terminates his employment with an
employer and takes up employment with another employer ("the new
employer") the rate of contribution to the pension fund payable by the
member and the new employer shall be calculated in such manner as
may be prescribed.

(10) The Minister may, by regulations, provide for—

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(a) the manner in which failure to comply with the
provisions of this section is to be dealt with;

(b) the procedure for the recovery of any contributions due
under this section;

(c) the rate of interest on contributions;

(d) the recovery of contributions or other amounts
erroneously paid, or paid in excess of or below the
prescribed rates;

(e) the rate of contribution payable to the pension fund for
the purposes of subsection (9).

PART IV
VESTING AND RETIREMENT

Normal retirement age
20 (1) The normal retirement date under a pension plan registered
under this Act shall be not later than one year after a member of the
pension plan has attained the age of sixty-five years unless the pension
plan specifies an earlier normal retirement date.

(2) A member of a pension plan who retires on a date referred
to in subsection (1) shall become entitled to the payment of the first
instalment of his pension on the first day of the month following his
normal retirement date and to subsequent instalments on the first day of
each succeeding month.

(3) The amount of pension in subsection (2) shall not be
reduced when payable from the member's normal retirement date.

(4) A member of a pension plan who, after his normal
retirement date, continues in employment and membership in a pension
plan may elect to continue accruing benefits under the pension plan up
to the date of his retirement, subject to the rules of the pension plan
relating to the period after the normal retirement date and shall become
entitled to the payment of the first instalment of his pension on the first
day of the month following the revocation of his election to continue
accruing benefits or of the month following the cessation of his
employment.

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Early retirement
21 (1) A member or former member of a pension plan may elect to
receive an early retirement pension if he is within ten years of attaining
the normal retirement date.

(2) The commuted value of a member's, or former member's,
early retirement pension must not be less than the commuted value of
the member's, or former member's, pension benefit in the pension plan.

(3) An election under subsection (1) shall be made in writing,
signed by the member or former member and delivered to the
administrator of the pension plan.

Vesting
22 Every pension plan which is to be registered shall provide for the
full vesting of accrued benefits in each of its members within a period
which does not exceed two years after the commencement of
membership.

Portability
23 (1) A member of a pension plan who terminates employment
shall be entitled to require the administrator to pay an amount equal to
the commuted value in the case of a defined benefit pension plan or the
account balance in the case of a defined contribution pension plan—

(a) to the pension fund of a new employer;

(b) to a prescribed retirement product;

(c) for the purchase for the member of a life annuity that
will commence on a date not earlier than the earliest
date on which the member would have been entitled to
receive payment of pension benefits under the pension
plan; or

(d) to a financial institution pension plan.

(2) A member may exercise his right under subsection (1) by
delivering to the administrator within ninety days from his date of
termination a direction in a form determined by the Commission.

(3) The administrator shall comply with the direction within
thirty days after delivery of the direction.

(4) If a member who has a right under subsection (1) does not
deliver a direction as required by subsection (2), the administrator may
deal with the commuted value or account balance according to his
fiduciary obligations or as otherwise required by law.

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(5) The administrator is discharged on making the payment or
transfer in accordance with subsection (2) if the payment or transfer
complies with this Act and the regulations.

PART V
LOCKING-IN OF CONTRIBUTIONS AND BENEFITS

Restrictions on refunds
24 (1) Except as otherwise provided under this Act, a member of a
pension plan is not entitled to a refund from a pension fund of
contributions made or any interest on such contributions.

(2) Subsection (1) does not prohibit the refund of any
additional voluntary contributions and interest thereon to a member or
former member in accordance with the provisions of the pension plan.

(3) Subsection (1) does not prohibit the refund of any
contributions made and interest thereon to a member or former member
in respect of his employment before the date that this Act comes into
operation.

(4) Subsection (1) does not prohibit the payment of a
commuted value set out in section 35(1) or account balance set out in
section 35(2).

(5) Notwithstanding subsection (1), on application by the
administrator of a pension plan to the Commission, the Commission may
permit the refund of contributions and interest thereon if—

(a) the pension plan provides for the refund; and

(b) the employer has assumed responsibility for the funding
of all pension benefits associated with the contributions.

(6) Notwithstanding subsection (1), on application by the
administrator to the Commission, if the pension plan provides, the
Commission may permit payment out of a pension fund to an employer
of an amount not in excess of the amount of an overpayment by an
employer or of an amount paid by the employer that should have been
paid out of the pension fund, but shall not consent unless the
application is made within ninety days after the end of the fiscal year of
the pension fund in which the overpayment occurred.

(7) Notwithstanding subsection (1), if a pension plan provides,
an employer may receive an amount under a defined contribution
pension plan that is not in excess of the amount of non-vested
contributions.

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Void transactions
25 A transaction is void to the extent that it purports to convey,
assign, charge, anticipate or give as security—

(a) a right to receive money payable under a pension plan;
or

(b) assets being transferred from a pension fund.

Exemption from execution, seizure or attachment
26 (1) Money payable under a pension plan is exempt from
execution, seizure or attachment or any other process taken by a
creditor.

(2) Money transferred from a pension fund to a prescribed
retirement product or for the purchase of a life annuity is exempt from
execution, seizure, attachment or any other process taken by a creditor.

(3) Money payable from a prescribed retirement product or
from a life annuity purchased with moneys transferred from a pension
fund is exempt from execution, seizure, attachment or any other process
taken by a creditor.

Commutation or surrender
27 Except as provided under this Act a pension or a benefit of a
person under a pension plan shall not be commuted or surrendered
during that person's life and any commutation or surrender is void.

Exceptions to general restrictions
28 Sections 26 and 27 do not apply to a transfer required by a court
order or pursuant to a property settlement agreement relating to the
transfer of assets on a divorce or to an order or settlement agreement for
the maintenance of a spouse, whether the order for the transfer of assets
or for maintenance was made before or after the commencement of this
Act.

PART VI
BENEFITS

Ancillary benefits
29 A pension plan may provide the following ancillary benefits in
relation to the retirement benefit, that is to say,—

(a) disability benefits;

(b) survivor benefits;

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(c) supplemental benefits payable for a temporary period of
time;

(d) early retirement options and benefits in excess of those
provided by this Act;

(e) benefits arising from additional voluntary contributions;
or

(f) any other ancillary benefits prescribed by regulations.

Survivor benefits on death after pension commences
30 (1) Every pension paid under a pension plan to a former
member who has a spouse on the date that payment of the first
instalment of the pension is due shall be a pension payable in the form
of a life annuity under which not less than 60% of the pension paid to
the member during the joint lives of the member and the member's
spouse shall continue to be paid to the spouse of the member upon the
death of the member, if the spouse survives the member.

(2) The commuted value of the joint and survivor annuity
under subsection (1) shall not be less than the aggregate of—

(a) the value of the former member's defined contribution
account balance, including accumulated additional
voluntary contributions, if any; and

(b) the commuted value of the former member's defined
benefit and the former member's entitlement to excess
contributions under section 32, if any.

(3) Subsections (1) and (2) do not apply in respect of a former
member who is living separate and apart from a spouse on the date that
payment of the first instalment of the pension is due.

(4) Subsections (1) and (2) do not apply in respect of a former
member, if the former member and the member's spouse deliver to the
administrator, or to the financial institution responsible for payment of
the member's pension benefit under a prescribed retirement product, a
written waiver in the form determined by the Commission for that
purpose or a court order or separation agreement.

(5) Persons who have delivered a written waiver under
subsection (4) may jointly cancel the waiver by a written notice in the
form and manner determined by the Commission.

(6) If a former member to whom subsection (3) or (4) applies
dies after payment of his pension benefit is due to commence, the
survivor benefit, if any, shall be paid in accordance with the form of

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pension benefit otherwise provided for under the terms of the pension
plan.

Survivor benefits on death before pension commences
31 (1) If a member dies before payment of his pension benefit is
due to commence, the person who is the spouse of the member on the
date of the member's death shall receive a lump sum payment equal to
the aggregate of—

(a) the value of the member's vested defined contribution
account balance, including accumulated additional
voluntary contributions, if any; and

(b) the commuted value of the member's vested defined
benefit entitlement and the member's entitlement to
excess contributions under section 32, if any,

unless the member's spouse elects in the form determined by the
Commission to receive an immediate or deferred pension of an
actuarially equivalent value in the form provided under the pension plan.

(2) Subsection (1) does not apply in respect of a member who is
living separate and apart from a spouse on the date of the member's
death.

(3) Subsection (1) does not apply if the member and the
member's spouse deliver to the administrator, or to the financial
institution responsible for payment of the member's pension benefit
under a prescribed retirement product, a written waiver in the form
determined by the Commission for that purpose or a court order or
separation agreement.

(4) Persons who have delivered a written waiver under
subsection (3) may jointly cancel the waiver by a written notice in the
form and manner determined by the Commission.

(5) If there is no spouse on the date of the member's death, or if
subsections (2) or (3) applies, the benefit described in subsection (1) shall
be paid to the beneficiary appointed in writing by the member, or where
no beneficiary has been appointed, or where a beneficiary appointed by
the member predeceases the member, to the estate of the member.

(6) If a member referred to in subsection (1) dies before
completion of two years of membership in the pension plan, the person
who is the spouse of the member on the date of the member's death shall
receive a lump sum payment equal to the member's contributions, if any,
plus earnings thereon.

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Minimum aggregate benefits
32 (1) In respect of employment before the date this Act comes
into operation—

(a) the aggregate of benefits payable under a pension plan
to a member shall not be less than the market value of
the member's account balance under defined
contribution plans or the commuted value under defined
benefit plans;

(b) if the aggregate of benefits in paragraph (a) is less than
the member's contributions plus interest credited to the
contributions, the member is entitled to have the
commuted value increased so that the commuted value
is equal to the value of the member's contributions plus
interest.

(2) An increase in the value of the vested pension benefit in
respect of employment before the date this Act comes into operation that
results from an amendment to the pension plan on or after that date
may be included in calculating the commuted value.

(3) A member's contributions to a pension plan made on or
after the date this Act comes into operation and the interest on the
contributions shall not be used to provide more than 50% of the
commuted value in respect of contributory benefits accrued after that
date to which the former member is entitled under the pension plan on
termination of membership or employment.

(4) A member who is entitled to a vested pension benefit on
termination of employment or membership is entitled to payment from
the pension fund of a lump sum payment equal to the amount by which
the member's contributions under the pension plan made on or after the
date this Act comes into operation and the interest on the contributions
exceeds one-half of the commuted value in respect of the contributory
benefit accrued after the date this Act comes into operation.

(5) The following may be excluded in determining that part of
the commuted value to which subsections (3) and (4) apply, that is to
say,—

(a) defined contribution benefits;

(b) benefits that result from additional voluntary
contributions;

(c) in the case of a multi-employer pension plan that
permits a member who has not accrued maximum

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pension benefits permitted under the pension plan in a
fiscal year of the pension plan to make contributions to
increase the member's pension benefit to the maximum
permitted for the fiscal year, benefits resulting from such
contributions; and

(d) any other benefits prescribed in the regulations for the
purposes of this subsection.

(6) The following may be included by the administrator in
calculating a member's contributory benefit for the purposes of
subsection (3), that is to say,—

(a) ancillary benefits related to employment on or after the
date that this Act comes into operation;

(b) increases to pension benefits and ancillary benefits
related to employment before the date of the amendment
resulting from an amendment to the pension plan made
on or after the date that this Act comes into operation
but which are not included in calculating the commuted
operation under subsection (3);

(c) pension benefits and ancillary benefits related to
employment before the date of the establishment of the
pension plan, in the case of a pension plan established
on or after the date that this Act comes into operation.

Effect of remarriage of surviving spouse
33 The surviving spouse of a deceased member of a pension plan
who is receiving a pension under the pension plan remains entitled to
such pension notwithstanding his or her subsequent remarriage.

Variation of payment to disabled persons
34 A pension plan may provide for the payment of greater benefits
under the pension plan to a member by reason of the mental or physical
disability of a member that is likely to reduce considerably his life
expectancy.

Small pensions
35 (1) A pension plan that provides defined benefits may provide
for payment of the former member's commuted value to the former
member if the commuted value is not more than 5% of the average
employment income as prescribed in the regulations in the year that the
former member terminated his employment.

(2) A defined contribution pension plan may provide for
payment of the former member's account balance to the former member

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if the account balance is not more than 5% of the average employment
income as prescribed in the regulations in the year that the former
member terminated his employment.

Information for payment of pension
36 (1) The administrator of a pension plan may, before paying a
pension or other benefit, or the commuted value of such pension or other
benefit, require the person entitled to such pension, benefit or commuted
value, to provide any necessary or relevant information regarding the
amount to be paid.

(2) The administrator of a pension plan is not liable in
connection with the amount payable—

(a) to the extent of his reasonable reliance on the
information provided by the person entitled pursuant to
subsection (1); or

(b) where the person entitled fails to provide the information
required pursuant to subsection (2), to the extent of his
reliance on the information available in the records
regarding the pension or benefit.

Prohibition of discrimination on the basis of sex
37 (1) The sex of a member, former member or other beneficiary
under a pension plan shall not be taken into account in—

(a) determining the amount of contributions required to be
made by a member of the plan;

(b) determining the defined benefits to which a member,
former member or other beneficiary is or may become
entitled;

(c) the provision of eligibility conditions for membership; or

(d) the provision of ancillary benefits.

(2) This section applies in respect of contributions, benefits and
conditions in relation to—

(a) employment after the date that this Act comes into
operation; and

(b) employment before the date that this Act comes into
operation in so far as it is dealt with in an amendment
made to the pension plan after that date.

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PART VII
WINDING UP

Winding up
38 (1) The administrator may wind up a pension plan in whole or
in part.

(2) Where the administrator proposes to wind up a pension
plan, he shall give written notice of that proposal to—

(a) the Commission;

(b) each member of the pension plan;

(c) each former member of the pension plan;

(d) each trade union that represents members of the
pension plan; and

(e) any other person entitled to a payment from the pension
fund.

(3) The notice of a proposal to wind up shall contain such
information as may be prescribed in regulations.

(4) Subject to subsection (5), in the case of a contributory
pension plan, the effective date of the winding up shall not be earlier
than the date members' contributions, if any, cease to be deducted or, in
any other case, on the date notice of the winding up is given to the
members.

(5) Notwithstanding subsection (4), the Commission may direct
that a different date be taken as the effective date of winding up if it is
satisfied that there are reasonable grounds for the change.

(6) The Commission may order the winding up of a pension
plan in whole or in part—

(a) if all or a significant part of the business of the employer
is discontinued;

(b) if the employer becomes insolvent;

(c) if an application for its registration is not granted, or if
the registration of the pension plan is revoked; or

(d) if the employer becomes bankrupt within the meaning of
the Bankruptcy Act 1989;

(e) if there has been a cessation or suspension of the
employer's or employees' contributions or accrual of
benefits to the pension fund;

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(f) if the employer fails to make contributions to the
pension fund as required by this Act or the regulations;

(g) if a significant number of members of the pension plan
cease to be employed by the employer as a result of the
discontinuance of all or part of, or the reorganization of,
the employer's business; or

(h) if any other event or circumstance, as may be
prescribed, occurs.

Appointment of winding up administrator
39 (1) Where the Commission orders the winding up of a pension
plan under section 38(6), it may appoint a person for this purpose who
shall have the powers and functions of the administrator and who
shall—

(a) perform any act for and on behalf of the pension plan
and represent it in and out of court;

(b) compile an inventory of the assets and liabilities of the
pension plan;

(c) determine the amount each member is entitled to receive
from the pension fund;

(d) determine the amount due to former members of the
pension plan and other persons;

(e) set out the method of allocating and distributing the
assets of the pension plan and the priorities for payment
of benefits; and

(f) perform any other function as may be prescribed.

(2) The reasonable costs of the person appointed by the
Commission may be paid out of the pension fund.

(3) Nothing in this section shall be construed as prohibiting the
appointment of an administrator for the purposes of subsection (1).

Report on winding up
40 (1) The person appointed to wind up a pension plan shall, at
the conclusion of the winding up submit a report to the Commission for
its approval, setting out the matters referred to in section 39.

(2) The Commission may refuse to approve a winding up report
if the report—

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(a) is not in accordance with the requirements of this Act or
regulations; or

(b) in its proposals or recommendations, does not protect
the interests of the members and former members.

Regulation of pension plan being wound up
41 With effect from the effective date of the winding up of a pension
plan—

(a) except as otherwise provided in paragraphs (b) and (c),
no payment shall be made out of the pension fund of a
pension plan until the Commission has approved the
report of the person appointed to wind up the pension
plan;

(b) a pension or any other benefit the payment of which
commenced before the effective date of the winding up
may continue to be paid after that date; and

(c) any payment out of the pension fund, other than a
payment under paragraph (b) or for reasonable costs
relating to the person appointed to wind up the pension
fund as determined by the Commission, may be made
only with the approval of the Commission or as
prescribed in regulations;

(d) the benefits provided under the pension plan shall
become fully vested in the members without regard to
their actual period of service;

(e) notwithstanding the winding up, an employer shall
remain liable for the contributions which he was,
immediately before the effective date, liable to pay into
the pension fund.

Notice of entitlements
42 On the winding up of a pension plan, the person appointed to
wind up the pension plan shall give to each person entitled to a benefit in
respect of the pension plan a statement setting out—

(a) the person's entitlement under the pension plan; and

(b) the options available to the person regarding the
immediate payment of a pension benefit if he is eligible
therefor or, if not so eligible, for the payment of a
pension commencing on such future date and on such
terms as may be prescribed; and

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(c) any other information prescribed by regulations.

Determination of entitlement
43 For the purpose of determining the amount of pension benefits
and any other rights, benefits and entitlements on the winding up of a
pension plan in whole or in part—

(a) the employment of each member affected by the winding
up shall be deemed to have been terminated on the
effective date of the winding up; and

(b) each member's pension benefits at the commencement
of the winding up shall be determined as if the member
had satisfied all conditions for eligibility for a deferred
pension benefit.

Liability of employer on winding up
44 (1) Where a pension plan is wound up, the employer shall pay
into the pension fund an amount equal to the total of all payments that,
under this Act, the regulations and the pension plan, are due or that
have accrued and that have not been paid into the pension fund.

(2) The employer shall pay the money due under subsection (1)
in the prescribed manner and at the prescribed times.

(3) In any case where—

(a) any warrant of distress is executed against the property
of an employer and the property is seized or sold in
pursuance of the execution; or

(b) on the application of a secured creditor the property of
an employer is sold,

the proceeds of the sale of the property shall not be distributed to any
person entitled thereto until the court ordering the sale has made
provision for the payment into a pension fund of any amounts due in
respect of contributions payable by the employer.

Pension fund continues subject to the Act and the regulations
45 (1) The pension fund of a pension plan that is wound up
continues to be subject to this Act and the regulations until all the assets
of the pension fund have been disbursed.

(2) Where the money in a pension fund is not sufficient to pay
all the pension benefits on the winding up of the pension plan in whole
or in part, the pension benefits and other benefits shall be reduced in the
prescribed manner.

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Surplus
46 No surplus may be paid out of a pension fund without the prior
consent of the Commission.

PART VIII
SALES, TRANSFERS AND NEW PLANS

Continuation of benefits under successor employer
47 (1) Where an employer who contributes to a pension plan sells,
assigns or otherwise disposes of all or part of his business or all or part
of the assets of his business, and a member of the pension plan as a
result becomes an employee of the successor employer and becomes a
member of the pension plan provided by the successor employer, that
member—

(a) continues to be entitled to the benefits provided under
the employer's pension plan in respect of his
employment up to the effective date of sale, assignment
or disposition, without further accrual;

(b) is entitled to credit in the pension plan of the successor
employer for the period of membership in the employer's
pension plan, for the purpose of determining eligibility
for membership in or entitlement to benefits under the
pension plan of the successor employer; and

(c) is entitled to credit in the employer's pension plan for
the period of employment with the successor employer
for the purpose of determining entitlement to benefits
under the employer's pension plan.

(2) Subsection (1)(a) does not apply if the successor employer
assumes responsibility for the accrued pension benefits of the employer's
pension plan and the pension plan of the successor's employer shall be
deemed to be a continuation of the employer's plan with respect to any
benefits or assets transferred.

(3) Where a transaction described in subsection (1) takes place,
the employment of the employee shall be deemed, for the purposes of
this Act, not to be terminated by reason of the transaction.

(4) Subject to subsection (5), where a transaction described in
subsection (1) occurs and the successor employer assumes responsibility
in whole or in part for the benefits provided under the employer's
pension plan, with the prior approval of the Commission, a transfer of
assets shall be made from the pension fund related to the employer's

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pension plan to the pension fund related to the plan provided by the
successor employer in accordance with the prescribed terms and
conditions.

(5) The Commission shall not approve a transfer of assets that
does not—

(a) protect the pension benefits and any other benefits and
rights of the members and former members; or

(b) meet the prescribed requirements and qualifications
provided for in or under this Act or the regulations.

(6) The Commission may by order require a transferee to return
to the pension fund, with interest at a rate to be prescribed, assets
transferred without the prior approval required by subsection (4).

(7) Subject to section 51, an order for return of assets under
subsection (6) may be enforced in the same manner as a judgement of
the Supreme Court for the payment of a sum of money.

(8) In this section, "successor employer" means the person who
acquires the business or the assets of the employer.

Adoption of a new pension plan
48 (1) Where a pension plan is established by an employer to be a
successor to an existing pension plan and the employer ceases to make
contributions to the original pension plan, the original pension plan shall
be deemed not to be wound up and the new pension plan shall be
deemed to be a continuation of the original pension plan.

(2) The benefits and rights under the original pension plan in
respect of employment before the establishment of the new pension plan
shall be deemed to be benefits and rights under the new pension plan.

(3) Subsection (2) applies whether or not the assets and
liabilities of the original pension plan are consolidated with those of the
new pension plan.

(4) No assets may be transferred from the pension fund of the
original pension plan to the pension fund of the new pension plan
without the prior approval of the Commission or contrary to the
prescribed terms and conditions.

(5) The Commission shall not approve a transfer of assets that
does not protect the pension benefits and any other benefits and rights
of the members, former members and beneficiaries of the original
pension plan or that does not meet the prescribed requirements and
qualifications.

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(6) The Commission may by order require a transferee to return
to the pension fund assets, with interest at a rate to be prescribed in the
regulations, transferred to him by the administrator without the prior
approval of the Commission or transferred contrary to the prescribed
terms or conditions.

(7) Subject to section 51, an order for the return of assets
under subsection (6), may be enforced in the same manner as a
judgment of the Supreme Court for the payment of a sum of money.

PART IX
ORDERS AND ADVICE BY COMMISSION

Orders by Commission
49 (1) The Commission may, in the circumstances mentioned in
subsection (2), order an administrator or any other person to take or
refrain from taking any action in respect of a pension plan or a pension
fund.

(2) The Commission may make an order under this section if it
is of the opinion—

(a) that the pension plan or pension fund is not being
administered in accordance with this Act, and the
regulations or the pension plan; or

(b) that the pension plan does not comply with this Act and
the regulations; or

(c) that the administrator of the pension plan, the employer
or any other person dealing with a pension plan is
contravening a requirement of this Act or the
regulations.

(3) In an order made under this section the Commission may
specify the time or times when or the periods of time within which the
persons to whom the order is directed must comply with the order.

(4) An order under this section is not effective unless the
reasons for the order are set out in the order.

Advice by Commission as to conformity
50 (1) The Commission may at any time, advise whether the rules
of a pension plan do or do not conform with the requirements of this Act
or the regulations.

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(2) Where the Commission advises that the rules do not
conform, it may indicate what steps it considers should be taken in order
to achieve conformity.

PART X
HEARINGS AND APPEALS

Hearing in certain cases
51 (1) Where the Commission proposes to refuse to register a
pension plan or an amendment to a pension plan or to revoke the
registration of a pension plan, it shall serve notice of the proposal,
together with written reasons therefor, on the applicant or the
administrator of the plan.

(2) A notice under subsection (1) shall state that the person on
whom it is served is entitled to a hearing by the Commission if the
person delivers to the Commission, within thirty days after service of the
notice under that subsection, notice accepting that a hearing should be
held regarding the matter in which the Commission proposes to make a
decision.

(3) A party to a hearing shall be given a reasonable opportunity
to show, or to achieve, compliance before the hearing, with all lawful
requirements for the registration or the continued registration of the
pension plan.

Appeals to Supreme Court
52 A person aggrieved by the decision of the Commission to reject
an application to register a pension plan, or an amendment to the
pension plan or to revoke the registration of a pension plan may appeal
to the Supreme Court in writing within twenty-one days of the service of
the decision of the Commission or such longer period as, on application
by the person appealing, the Supreme Court may allow.

Regulations relating to hearings and appeals
53 The Minister may by regulations prescribe the practice and
procedure for hearings and, in consultation with the Chief Justice, for
appeals to the Supreme Court under this Part.

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PART XI
THE PENSION COMMISSION

Establishment of Pension Commission
54 (1) There is established a body to be known as the Pension
Commission.

(2) The Commission is a body corporate with perpetual
succession and a common seal and shall have power to—

(a) acquire, hold and dispose of moveable and immovable
property;

(b) enter into contracts;

(c) sue and to be sued in its own name; and

(d) do and suffer all such acts and things as bodies
corporate may lawfully do or suffer.

(3) The provisions of the Second Schedule shall have effect with
respect to the constitution, proceedings and other matters set out in that
Schedule in relation to the Commission.

Members of the Commission
55 (1) The Commission shall consist of—

(a) the following members appointed by the Minister—

(i) a Chairman;

(ii) a Deputy Chairman; and

(iii) not less than five nor more than seven other
members; and

(b) the Financial Secretary as ex officio member.

(2) The Chairman and the Deputy Chairman shall hold office at
the Minister's pleasure.

(3) A member of the Commission referred to in paragraph (a)(iii)
of subsection (1) shall, unless his appointment is sooner terminated or
he otherwise ceases to be a member, hold office for a term not exceeding
three years or such other shorter period as may be specified in his
instrument of appointment and may, from time to time, be re-appointed.

(4) A member appointed under subsection (1)(a) may resign his
office by notice in writing delivered to the Minister.

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(5) There may be paid as part of the expenses of the
Commission to members of the Commission appointed under subsection
(1)(a) such remuneration and allowances as the Minister may determine.

Functions of the Commission
56 The functions of the Commission are—

(a) to administer this Act and the Regulations;

(b) to consider and determine applications for the
registration of pension plans;

(c) to promote and ensure compliance, by pension plans,
with the provisions of this Act and the regulations;

(d) to monitor the administration, and funding, of pension
plans and to enforce the provisions of this Act and the
regulations in respect of such administration and
funding;

(e) to verify the payment of benefits under pension plans;

(f) to promote public education on pension plans and their
benefits;

(g) to advise the Minister on any matter relating to
pensions, including the development of laws relating to
pension plans;

(h) to provide such information relating to its functions as
the Minister may require; and

(i) to investigate complaints relating to a pension plan and
a pension fund;

(j) to perform any other functions provided for in or under
this Act.

Officers and employees of the Commission
57 (1) The Commission shall appoint a Chief Executive Officer and
such other officers and employees as it may consider appropriate for the
discharge of its functions and, subject to section 58 on such terms and
conditions as the Commission may determine.

Chief Executive Officer
58 (1) The Chief Executive Officer of the Commission shall be
appointed by the Commission after consultation with the Minister and
his services shall not be terminated by the Commission except after the
like consultation.

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(2) The terms and period of service of the Chief Executive
Officer shall be fixed by the Commission.

(3) The Chief Executive Officer shall be responsible for the day
to day management of the Commission and, subject to the directions of
the Commission, shall be responsible for carrying out the functions of
the Commission.

Protection from personal liability
59 A member of the Commission or any officer, employee or agent of
the Commission shall not be personally liable in damages for anything
done or omitted to be done in the discharge or purported discharge of the
Commission's functions under this Act unless the act or omission was in
bad faith.

Funds of the Commission
60 The funds of the Commission shall consist of—

(a) grants from the Government out of moneys appropriated
by the Legislature for the purposes of the Commission;

(b) any moneys accruing to the Commission in the course of
the Commission's discharge of its functions; and

(c) any other moneys received by the Commission.

Power to order information and reports
61 (1) For the purpose of ascertaining compliance with this Act
and the regulations, the Commission may order an employer or an
administrator of a pension plan to provide the Commission with such
information or report and within such time limits as it may specify.

(2) An order under this section may include, but is not limited
to, ordering the preparation of a new report and specifying the
assumptions and methods or both, that shall be used in the preparation
of the new report.

Accounts and audit
62 (1) The Commission shall keep books of account and maintain
proper records of its operations.

(2) The accounts of the Commission shall be audited annually
by the Auditor or such other person registered as a public accountant
under the Institute of Chartered Accountants of Bermuda Act 1973
appointed for the purpose by the Auditor on such terms and conditions
as the Auditor may determine.

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Budget
63 (1) The Commission shall submit to the Minister for his
approval—

(a) not later than seven months prior to the commencement
of each financial year, income and expenditure
estimates, in such detail as the Minister may require,
relating to the programmes planned for that financial
year of operation of the Commission; and

(b) as soon as may be, any subsequent proposal to amend
such estimates,

and the estimates, together with any amendments, upon being approved
by the Minister, shall be the Commission's budget for the financial year
to which it relates.

(2) The Minister may in any case, on the application of the
Commission, increase or decrease the period of seven months specified
in subsection (1)(a).

Annual Reports
64 (1) The Commission shall, within six months of the end of each
financial year, submit to the Minister an annual report in respect of that
year containing—

(a) a copy of the audited accounts of the Commission
together with the Auditor's report on those accounts;

(b) a report on the operations of the Commission during
that financial year; and

(c) such other information as the Minister may, prior to the
completion of the annual report or as supplementary
thereto, require.

(2) The Minister shall cause a copy of the annual report to be
laid before both Houses of the Legislature at the session of the House of
Assembly immediately following the submission of the report.

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PART XII
GENERAL

Power of entry, search, etc.
65 (1) For the purposes of the administration or enforcement of
this Act and the regulations or any matter relating to the Act or the
regulations, a member of the Commission, an officer or employee of the
Commission may or any other person authorized by the Commission
may, either alone or together with another person or persons,

(a) at any reasonable time, enter any premises, where that
person has reasonable grounds to believe that
documents or other things relating to a pension plan or
a pension fund are kept;

(b) examine, investigate or make inquiries or require the
production of any document or thing relating to a
pension plan or a pension fund;

(c) make, take, remove or require the making, taking or
removal of copies or extracts relating to an examination,
investigation or inquiry.

(2) A person exercising powers under subsection (1)—

(a) shall provide identification of himself at the time of
entry; and

(b) may not enter a private residence without the consent of
the owner or occupier except on the authority of an
inspection order issued under subsection (4).

(3) A copy of any document relating to a pension plan or
pension fund and made under subsection (1) in the course of an
investigation, examination or inquiry and certified by the Chief Executive
Officer is admissible in evidence in any action for all purposes for which
the original would have been admissible.

(4) Where an owner or occupier of premises denies entry to any
person referred to in subsection (1) or orders him to leave the premises,
or obstructs him or refuses to comply with a request for the production
of any document required under that subsection, that person may apply
to a magistrate for an inspection order authorising him to enter the
premises and do anything for the purpose of any matter set out in
subsection (1).

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Extension of time
66 The Commission may extend any time limit under this Act or the
regulations, before or after the expiration of the time limit, if satisfied
that there are reasonable grounds for granting the extension and may
give such directions as the Commission considers proper consequent
upon the extension.

Offences, penalties and orders for payment
67 (1) A person who contravenes a provision of this Act or the
Regulations is guilty of an offence.

(2) A person who contravenes an order made under this Act is
guilty of an offence.

(3) Subject to section 65(4), a person who hinders or obstructs
another person lawfully carrying out a duty under this Act or the
Regulations is guilty of an offence.

(4) A person convicted of an offence under this Act is liable—

(a) on conviction by a court of summary jurisdiction, to a
fine not exceeding $10,000 or to imprisonment for a
term not exceeding twelve months or to both such fine
and imprisonment ; or

(b) on conviction on indictment, to a fine not exceeding
$50,000 or to imprisonment for a term not exceeding five
years, or to both such fine and imprisonment.

(5) Where a person is convicted of an offence relating to the
failure to submit or make payment to a pension fund, the court may, in
addition to any penalty, assess the amount not submitted or paid and
order the person to pay the amount to the pension fund.

Offences by bodies corporate
68 (1) Where an offence under this Act or the regulations which
has been committed by a body corporate is proved to have been
committed with the consent or connivance of, or to be attributable to any
neglect on the part of, a director, manager, secretary or other similar
officer of the body corporate, or any person who was purporting to act in
any such capacity, he as well as the body corporate shall be guilty of that
offence and be liable to be proceeded against accordingly.

(2) Where the affairs of a body corporate are managed by its
members, subsection (1) applies in relation to the acts and defaults of a
member in connection with his functions of management as if he were a
director of the body corporate.

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Regulations
69 (1) The Minister may, after consultation with the Commission,
make regulations—

(a) for the administration of pension plans, pension funds
and benefits;

(b) prescribing the method of calculating the commuted
value of a pension or benefit in a pension plan;

(c) prescribing the methods of calculating the values of
assets and liabilities of pension funds; and the carrying
out of periodic actuarial valuations of pension plans;

(d) providing for the establishment of pension plans, in
respect of persons who are self-employed;

(e) prescribing criteria to be complied with in connection
with the paying of surplus out of pension funds;

(f) regulating the investment of money from pension funds
and prescribing the investments or categories of
investment in which such money may be invested;

(g) prescribing the requirements for life annuity contracts
purchased from benefits paid or payable under this Act;

(h) prescribing rates of interest and the method of
calculating interest payable under this Act or the
regulations;

(i) prohibiting the investment of money from pension funds;
and

(j) requiring the audit of pension plans and pension funds
and prescribing the persons who may perform, and the
manner of performing, such audits;

(k) governing the winding up or partial winding up of
pension plans and prescribing priorities or the method of
determining priorities on winding up, including priorities
in the allocation of assets and related matters;

(l) prescribing reports to be submitted to the Commission,
the contents and method of preparation of such reports,
the persons by whom such reports are to be prepared
and the qualification, if any, required in respect of such
persons;

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(m)prescribing forms and records required to be prescribed
under the Act and time limits for retention of such
records;

(n) prescribing any fees payable under any provision of this
Act or the Regulations;

(o) prescribing retirement products and the requirement of
such products;

(p) prescribing the information that shall be provided by an
administrator of a pension plan to members and the
period of time for which such information shall be
provided; and

(q) generally prescribing all other matters which are
necessary or convenient to be prescribed for carrying out
or giving effect to this Act.

(2) The affirmative resolution procedure shall apply to
regulations made under this Act.

Reciprocity with other countries
70 (1) For the purpose of giving effect to any agreement between
the Government of Bermuda and the government of another country
providing for reciprocity in matters relating to payments for purposes
similar or comparable to the purposes of this Act, the Minister may, by
regulations made by him under this section, make provision for
modifying or adapting this Act in its application to cases affected by the
agreement.

(2) Except insofar as regulations made under subsection (1)
make specific modifications or adaptations, this Act shall be read and
construed with such modifications and adaptations to such extent as
may be required to give effect to the provisions contained in an
agreement to which subsection (1) applies.

(3) The affirmative resolution procedure shall apply to
regulations made under this section.

Repeal and rule against perpetuities
71 (1) The Pension Trust Funds Act 1966 is repealed.

(2) Notwithstanding the repeal of the Pension Trust Funds Act
1966—

(a) section 7 of that Act (which provides that the rule of law
relating to perpetuities shall not apply and shall be

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deemed never to have applied to the trusts of any
registered or unregistered fund) shall continue in force
in relation to the matters it provides for; and

(b) any arrangement of assurance made under section 12 of
that Act shall continue in force until, by virtue of its
terms, it expires,

as if the Act had not been repealed.

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FIRST SCHEDULE (section 19)

CONTRIBUTION SCHEDULE

Date
Contribution Rate

(% of pensionable earnings)

1 January 2000 1%

1 January 2001 2%

1 January 2002 3%

1 January 2003 4%

1 January 2004 5%

SECOND SCHEDULE (section 54(3))

PROCEDURE AT MEETINGS

1 No fewer than five appointed members shall form a quorum at a
meeting of the Commission.

2 An ex officio member may attend a meeting of the Commission
and may assist the Commission in its deliberations on any matter, but
an ex officio member shall not be counted for the purpose of constituting
a quorum and shall have no vote.

3 (1) The Chairman or, in his absence, the Deputy Chairman,
shall preside at a meeting of the Commission.

(2) If both the Chairman and the Deputy Chairman are absent
the members present shall elect from among their numbers an appointed
member to preside at that meeting.

4 (1) Any question proposed for a decision by the Commission
shall be determined by a majority of the votes of the appointed members
present and voting at a meeting of the Commission.

(2) The Chairman or other person presiding at a meeting of the
Commission shall have a deliberative, and in the event of an equality of
votes, a second or casting, vote.

5 (1) Subject to sub-paragraphs (2) and (3), the Commission
shall meet as often as it considers it necessary so to do for the exercise
and performance of its functions under this Act and, without prejudice to

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the generality of the foregoing, shall, in any event, meet no fewer than
ten times in a financial year.

(2) The Chairman may at any time, and shall, at the request in
writing of the Minister or of any two members of the Commission
convene a special meeting of the Commission.

(3) A notice convening a special meeting of the Commission
shall state the purpose for which the special meeting is being convened.

(4) Meetings of the Commission shall be held at such places,
on such dates and at such times as the Chairman may determine and
notice of such place, date and time shall be given in writing, to each
member of the Commission at least forty-eight hours before the time
fixed for such meeting.

(5) The Chairman shall cause minutes of all meetings of the
Commission to be kept.

6 (1) A member who is in any way directly or indirectly interested
in any matter which falls to be considered by the Commission shall
disclose the nature of his interest at a meeting of the Commission, and
the disclosure shall be recorded in the minutes of the meeting.

(2) The member shall not take part in any deliberation or
decision with respect to the matter if the Commission decides that the
interest in question might prejudicially affect the member's consideration
of the matter.

(3) For the purposes of this paragraph, a notice given by a
member at a meeting to the effect that he is a member of a specified body
corporate or firm and is to be regarded as interested in any matter
concerning that body or firm which falls to be considered after the date
of the notice shall be sufficient disclosure of his interest.

Miscellaneous

7 (1) The seal of the Commission shall be authenticated by the
Chairman or Deputy Chairman and the Chief Executive Officer and shall
be judicially and officially noticed.

(2) All documents, other than those required by law to be
under seal, made by the Commission and all decisions of the
Commission may be signified under the hand of the Chairman or any
other member or officer authorized to act in that behalf.

8 The validity of any act or proceeding of the Commission shall not
be affected by any vacancy among the members, or by any defect in the

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appointment of a member, or by any failure to comply with any
requirement of paragraph 5.

9 Subject to the provisions of this Act, the Commission shall meet
for the dispatch of business, and otherwise regulate its affairs, as it
thinks fit.