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Chapter 27:14 - Pensions (Holders of Office in Local Democratic Organs)

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L.R.O. 1/2012
LAWS OF GUYANA
PENSIONS (HOLDERS OF OFFICES IN LOCAL
DEMOCRATIC ORGANS) ACT
CHAPTER 27:14
Act
19 of 1988
Amended by
19 of 1990
Current Authorised Pages
Pages
(inclusive)
Authorised
by L.R.O.
1 – 16 ... 1/2012
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Note
on
Subsidiary Legislation
This Chapter contains no subsidiary legislation.

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CHAPTER 27:14
PENSIONS (HOLDERS OF OFFICES IN LOCAL
DEMOCRATIC ORGANS) ACT
ARRANGEMENT OF SECTIONS
SECTION
1. Short title and application.
2. Interpretation.
3. Contributions.
4. Circumstances in which pensions are payable.
5. Rate of pension.
6. Pension in certain special case.
7. Cessation of pension if person in receipt thereof again becomes a
qualified person.
8. Gratuity and reduced pension.
9. Gratuity.
10. Widow’s pension.
11. Children’s allowance.
12. Source and method of payments.
13. Awards not to be assignable.
14. Power to make regulations.
__________________________
19 of 1988 An Act to make provision for the payment of
superannuation benefits in respect of service in the
offices of chairman and vice-chairman of a regional
democratic council.
[30TH SEPTEMBER, 1988]
Short title and
application.
1. (1) This Act may be cited as the Pensions (Holders
of Offices in Local Democratic Organs) Act.
(2) This Act applies to—
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Interpretation.
[19 of 1990]
(a) a chairman or vice-chairman of a
regional democratic council; or
(b) if the Minister so directs by order,
which shall be subject to affirmative
resolution of the National Assembly—
(i) any other member or employee
of a regional democratic
council; or
(ii) any member or employee of
any other local democratic
organ.
2. In this Act—
“child” includes—
(a) a posthumous child;
(b) a step-child;
(c) a child born out of wedlock who
immediately before the death of the
deceased person, was wholly or
partially dependent on him for
support; and
(d) an adopted child, adopted in the
manner recognised by law;
“qualified person” means—
(i) a chairman or a vice-chairman
of a regional democratic
council; and
(ii) any person to whom this Act is
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Contributions.

Circumstances
in which
pensions are
payable.
made applicable by order
under section 1 (2)(b);
“remuneration” means any payment whether called salary or
allowance, received by a qualified person from a local
democratic organ for services rendered by him as such
qualified person, but shall not include—
(i) any entertainment allowance;
(ii) any housing allowance;
(iii) any travelling or subsistence
allowance; or
(iv) any other allowance which may be
specified by the Minister by order.
“widow” includes “widower”.
3. (1) Every qualified person shall pay a contribution
under this Act which shall—
(a) be at the rate of six per cent of the
remuneration payable to that person;
and
(b) accrue daily and be deducted
monthly from his remuneration and
be paid to the Accountant General.
(2) All contributions made pursuant to this Act
shall be paid into the Consolidated Fund.
4. (1) Subject to this Act, a pension shall be paid under
this Act to any qualified person if—
(a) he has been a qualified person for a
period of not less than four years
either continuously or in the
aggregate; and
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c. 27:03
(b) has ceased to be a qualified person;
and
(c) either—
(i) has attained the age of forty
years; or
(ii) not having attained the age of
forty years, has produced
medical evidence to the
satisfaction of the Minister,
that he is incapable by reason of
infirmity of mind or body of
discharging the duties of a
qualified person and that such
infirmity is likely to be
permanent.
(2) No pension shall be paid to any person under
this Act if he is in receipt of or is entitled to receive a
President’s pension or a Prime Minister’s pension under the
Pensions (President, Parliamentary and Special Offices) Act.

(3) Where a person ceases to be a qualified person
but is not eligible for a pension under this Act because of
subsection (l)(c)(i), then, notwithstanding subsection (1), the
pension for which he would have been eligible at the date
when he ceased to be a qualified person shall be paid to him
with effect from the date on which he attains the age specified
in subsection (l) (c) (i), if at that date—
(a) he has not received a gratuity under
section 9 in respect of that period of
his service as a qualified person to
which the pension relates; and
(b) he is not otherwise disqualified for
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Rate of
pension.
the payment of a pension.
(4) For the purposes of this Act, a person shall be
deemed to have served as a qualified person for periods
amounting in the aggregate to twelve years if, having become
a qualified person under this Act and irrespective of his age,
he fulfils the requirements of subsection (l) (c) (ii) and if, in
the opinion of the Minister, his incapacity to discharge the
duties of a qualified person is attributable to infirmity of mind
or body sustained in the course of his service as a qualified
person.
5. (1) The pension payable to any person shall—
(a) in the case of a person who has served
as a qualified person for periods
amounting in the aggregate to not less
than four years, be at an annual rate
equal to one-quarter of one year’s
remuneration of that person;
(b) in the case of a person who has served
as a qualified person for periods
amounting in the aggregate to more
than four years but not less than six
years, be at an annual rate equal to
one-third of one year’s remuneration
of that person; and
(c) in the case of a person who has served
as a qualified person for periods
amounting in the aggregate to more
than six years but not less than eight
years, be at an annual rate equal to
one-half of one year’s remuneration of
that person;
(d) in the case of a person who has served
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Pension in
certain special
case.

Cessation of
pension if
as a qualified person for periods
amounting in the aggregate to more
than eight years but not less than ten
years, be at an annual rate equal to
two-thirds of one year’s remuneration
of that person; and
(e) in the case of a person who has served
as a qualified person for periods
amounting in the aggregate to more
than ten years but not less than twelve
years, be at an annual rate equal to
three-quarters of one year’s
remuneration of that person.
(2) For the purposes of subsection (1), “one year’s
remuneration” means the highest annual rate of remuneration
payable at any time to a qualified person.
(3) The pension payable to any person under this
Act shall be paid with effect from the date on which that
person becomes entitled thereto pursuant to section 4 and,
subject to this Act, shall continue to be paid during the
lifetime of that person.
6. (1) Where a qualified person had not, during any
period of his service as a qualified person, become eligible to
receive any remuneration in respect of his service as a
qualified person, and has completed not less than ten years of
service as a qualified person he may be paid, on his ceasing to
be a qualified person, such pension as may be determined by
the Minister by Order.
(2) An Order under subsection (1) shall be subject
to negative resolution of the National Assembly.
7. (1) A pension under this Act shall cease to be
payable during any period in respect of which a person to
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person in
receipt thereof
again becomes
a qualified
person.

Gratuity and
reduced
pension.

Gratuity.
whom it is payable is in receipt of salary as a qualified person
but where the rate of such pension exceeds the rate of such
salary, nothing in this subsection shall prevent the payment of
a pension to the extent of such excess.
(2) At the expiration of the period referred to in
subsection (1) during which a person is in receipt of salary as
a qualified person, the rate of pension shall be recalculated in
accordance with section 5.
(3) Where a pension is recalculated pursuant to
subsection (2) and the person entitled thereto opts to receive
such pension by way of a gratuity and a reduced pension,
then in calculating the amount of such gratuity there shall be
deducted therefrom any amount already paid to such person
by way of gratuity in respect of the pension payment of which
was suspended under subsection (1).
(4) A pension recalculated in accordance with
subsection (2) shall be paid at the recalculated rate with effect
from the date of cessation of the period of service as a
qualified person which gave rise to the recalculation.
8. (1) Any person who is entitled to a pension under
this Act may, at his option exercisable in accordance with
subsection (2), be paid instead of a pension at the rate
provided for in section 5, a pension at the rate of three-fourths
of such pension together with a gratuity equal to twelve and
one-half times the amount of the reduction so made in the
pension.
(2) The option referred to in subsection (1) shall be
exercised by notice in writing to the Minister within ninety
days after the date on which the person concerned ceases to
be a qualified person or within such further period as the
Minister may allow.
9. (1) Where a person having become a qualified
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Widow’s
pension.
person under this Act ceases to be a qualified person but is
not eligible for a pension he shall be paid a gratuity equal to
one-tenth of the total salary received during his period of
service as a qualified person so, however, that such gratuity
shall not in any event exceed three years’ salary at the highest
annual rate of salary payable at any time to such person as a
qualified person.
(2) Where a person who would be entitled to such
a gratuity dies before such gratuity has been paid to him, and
in the case of a male, leaves no widow or children entitled to
an award, there shall be paid to the legal personal
representative of such person a gratuity equal to the amount
which, pursuant to subsection (1) would have been paid to
such person if he had not died.

10. (1) Subject to this Act, where a person who dies
leaving a widow—
(a) was in receipt of a pension at the date
of his death; or
(b) had at the date of his death, satisfied
the requirements of section 4 (1) (a);
or
(c) having become a contributor under
this Act, died, in the opinion of the
Minister, in the course of service as a
qualified person,
there shall be paid to the widow, during her lifetime and
while unmarried, a widow’s pension at an annual rate
equivalent to one-half of the pension which —
(d) in the case of a person mentioned in
paragraph (a), was being paid to him;
or
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(e) in the case of a person mentioned in
paragraph (b), not being a person
mentioned in paragraph (c), would
have been payable to him with effect
from the date of his death if he had
not died but had satisfied all the
requirements of section 4 for the
award of a pension computed in
accordance with section 5; or
(f) in the case of a person mentioned in
paragraph (c), would have been
payable to him with effect from the
date of his death if he had not died
but had satisfied all the
requirements of section 4 for the
award of a pension computed in
accordance with section 5 as if he had
served as a qualified person for
periods amounting in the aggregate to
twelve years.
(2) A widow’s pension under this section—
(a) shall, subject to subsection (3), if the
widow is in receipt of a pension by
virtue of having been herself a
contributor under the Act, cease to be
payable; and
(b) shall subject to subsection (3), if the
widow is in receipt of salary as a
qualified person cease to be payable
during the period in respect of which
the widow is in receipt of such salary.

(3) Where the rate of widow’s pension exceeds the
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rate of pension or the rate of salary, as the case may be,
nothing in subsection (2) shall prevent the payment of the
widow’s pension to the extent of such excess.
(4) Where a person who is serving as a qualified
person dies before he has served the required minimum
period as a qualified person to permit his widow to qualify
for a widow’s pension under subsection (1) there shall be paid
to the widow a gratuity equal in amount to the total
contributions paid by that person plus a sum equal to the
highest amount salary payable at any time to that person as a
qualified person.
(5) Notwithstanding anything in this Act, but
subject to this section, where a person mentioned in-
subsection (1) (a), (b) or (c) dies leaving a dependant to
whom he has bequeathed an annuity not exceeding one-third
of any widow’s pension payable under this section
consequent on the death of a deceased person or which would
have been payable had the deceased person died leaving a
widow, and has directed that such annuity be payable under
this Act, such annuity shall be paid to such dependant, and
where a widow’s pension is payable under this section
consequent on the death of the deceased person, the amount
of any annuity so paid shall be deducted from such pension:
Provided that where the dependant, being an unmarried
person at the date of the deceased’s death, marries, the said
annuity shall forthwith cease to be payable.
(6) For the purposes of this section—
(a) “dependant” means any person, other
than a widow or a child, who
immediately before the death of the
deceased person was wholly or
partially dependent on him for
support;
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Children’s
allowance.
(b) where an annuity is payable under
subsection (5)—
(i) subsections (2) and (3) shall
also apply, mutatis mutandis, to
such annuity and to the
dependant to whom it is
payable; and
(ii) the reference in subsection (3 )
to the widow’s pension shall, in
relation to the widow, be
construed as a reference to the
pension payable to the widow
under this section less the
amount deducted therefrom
under subsection (5).

11. (1) Subject to this Act, where a person who comes
within section 10 (1) (a), (b) or (c) (hereinafter in this section
referred to as the “deceased qualified person”) dies leaving
one or more children, a children’s allowance shall be payable
in respect of such child or children while under the age of
twenty-one years.
(2) Only one children’s allowance is payable in
respect of service of any one person as a qualified person
but—
(a) the rate thereof may vary according to
the number of children entitled
thereto so however that the aggregate
rate of allowance payable shall not
exceed the rate specified in subsection
(3) (a) or subsection (4) (a), as the case
may be;
(b) it shall be paid to such person or
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persons as the Minister may from
time to time direct, and different parts
thereof may be directed to be paid to
different persons;
(c) the person to whom all or any part
thereof is paid shall apply the sum
paid to him, without distinction, for
the benefit of all the children for the
time being entitled thereto or for the
benefit of such of them as the Minister
may from time to time direct.
(3) Where the deceased qualified person leaves a
widow, the annual rate of the children’s allowance during her
lifetime shall be—
(a) one-third of the rate of the pension,
not being the widow’s pension,
specified in section 10 (1) where there
are two or more children entitled to
the children’s allowance; and
(b) one-sixth of the rate of such pension
where there is only one child entitled
to the children’s allowance.
(4) Where the deceased qualified person leaves no
widow, or where he leaves a widow, then, after her death, or
after any pension payable to her ceases to be paid before her
death, the annual rate of the children’s allowance shall be—
(a) one-half of the rate of the pension, not
being the widow’s pension, specified
in section 10 (1) where there are two
or more children entitled to the
children’s allowance;

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Source and
method of
payments.

Awards not to
be assignable.

Power to make
regulations.
(b) one-quarter of the rate of such
pension where there is only one child
entitled to the children’s allowance.
(5) Notwithstanding subsection (1), a female child
who marries while under the age of twenty-one years shall
cease to be entitled to a children’s allowance.
12. Any pension, annuity, allowance or gratuity of
whatever kind payable under this Act is hereby charged on
and shall be paid out of the Consolidated Fund, and all
pensions and allowances payable shall be paid monthly in
arrears in equal instalments as far as possible.
13. Any award payable shall not be assignable or
transferable except for the purpose of satisfying—
(a) a debt to the State; or
(b) an order of any court for the payment
of periodical sums of money towards
the maintenance of the wife, former
wife or child, being a minor, of the
person to whom the award is payable,
and shall not be liable to be attached, sequestered or levied
upon for or in respect of any debt or claim whatever except a
debt due to the State or any sum recoverable pursuant to any
such order of a court as aforesaid.
14. The Minister may make regulations—
(a) prescribing, where a recipient of
any pension or allowance under this
Act is incapable of managing his
affairs, that the pension or the
allowance may be paid to another
person on his behalf;
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(b) prescribing anything which may be
required to be prescribed, including
any forms he considers necessary for
the administration of this Act;
(c) prescribing the manner in which, and
the person by whom, accounts of
contributions and awards shall be
kept and recorded; and
(d) for any other purposes, whether
similar to the foregoing or not,
deemed necessary to give effect to this
Act.
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