NPF Amendment Act 2015

Link to law: http://www.palemene.ws/new/wp-content/uploads/01.Acts/Acts%202015/NPF-Amendment-Act-2015-Eng.pdf

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rangement of Provisions

1. Short title and commencement
2. Staff of the Fund
3. Crediting of contributions to
accounts
4. Members’ accounts
5. Rate of interest
6. Withdrawals and elections on
date of entitlement
7. Insertion of new provision
8. Transitional

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2015, No. 18

AN ACT to amend the National Provident Fund Act 1972
(“Principal Act”). [03rd
June 2015]

BE IT ENACTED by the Legislative Assembly of Samoa in
Parliament assembled as follows:

1. Short title and commencement - This Act may be cited as
the National Provident Fund Amendment Act 2015 and
commences on the date of assent by the Head of State.

2. Staff of the Fund - For section 12(1) of the National
Provident Fund Act 1972:
(a) repeal paragraph (b); and
(b) in paragraph (d), for “managers” substitute “senior
management”.


2 National Provident Fund Amendment 2015, No. 18

3. Crediting of contributions to accounts - Section 32(2)
and (3) are repealed.

4. Members’ accounts - For section 35 of the Principal Act
substitute:

“35. Members’ accounts-(1) At the end of each financial
year, the Board shall cause the account of each member of the
Fund to be credited with:
(a) the amount of the contributions paid by or on
behalf of the member during the financial year
less any partial withdrawal benefits paid from
the member’s account during the financial year
less any fees charged to the member’s account
during the financial year;
(b) interest under subsections (2) and (3) at the rate
declared by the Board under section 36; and
(c) any amounts credited under section 28; and
(d) any special payments under section 39.
(2) Interest shall be calculated for each member’s account
as follows:
(a) interest for the whole of the financial year on the
amount standing to the member’s credit at the
start of the financial year less an annual
administration fee as fixed by the Board and
less -
(i) for an employee member, any
voluntary contributions made under section
22(8) in the prior financial year;
(ii) for a voluntary member, any sum
paid in the prior financial year which
exceeds the average annual contributions
made in the preceding five (5) years;
(b) plus, on each contribution credited to the member’s
account during the financial year, interest for
the period between the date of payment of the
contribution and the end of the financial year;


2015, No. 18 National Provident Fund Amendment 3

(c) plus, on any amounts credited under section 28,
interest for the period between the date the
amount is credited and the end of the financial
year;
(d) less, on each partial withdrawal benefit payment
made from the member’s account during the
financial year and an associated fee as fixed by
the Board, interest for the period between the
date of the partial withdrawal benefit payment
and the end of the financial year.
(3) No interest is credited on special payments made to a
member’s account under section 39 until the financial year
after the special payment is made.”.

5. Rate of interest - In section 36(1) of the Principal Act:
(a) after “payable on” insert “member’s account balances
and”; and
(b) for “contributions to” substitute “cash flows to and
from”; and
(c) for “Fund” substitute “members accounts”; and
(d) after “at such rate” insert “in accordance with section
35 and 42.

6. Withdrawals and elections on date of entitlement - After
section 42(3) of the Principal Act insert:

“(4) Where a withdrawal of the full amount in the member’s
account is permitted, and the member has made no partial
withdrawal in the financial year, interest will be payable by the
Fund being the sum of:
(a) interest on the member’s account balance on 1 July
of the financial year in which the withdrawal is
made, calculated over the period between 1
July and the date of the full withdrawal benefit
payment less -
(i) for an employee member, any
voluntary contribution made under section
22(8) in the prior financial year; and


4 National Provident Fund Amendment 2015, No. 18

(ii) for a voluntary member, any sum
paid in the prior financial year which
exceeds the average annual contributions
made in the preceding five (5) years; and
(b) interest on each contribution credited to the
member’s account on or since 1 July,
calculated over the period between the date of
payment of the contribution and the date of the
full withdrawal benefit payment less -
(i) for an employee member, any
voluntary contribution made under section
22(8) in the current financial year; and
(ii) for a voluntary member, any sum
paid in the current financial year which
exceeds the average annual contributions
made in the preceding five (5) years; and
(c) interest on any amount credited to the member’s
account under section 28 on or since that
1 July, calculated over the period between the
date of crediting and the date of the full
withdrawal benefit payment.
(5) Where a withdrawal of the full amount in the accounts of
the Fund is permitted and the member has made one (1) or
more partial withdrawals since the start of the financial year,
interest shall be calculated as follows:
(a) interest will be calculated in accordance with
subsection (4) up to the date of the first partial
withdrawal;
(b) if there has been more than one (1) partial
withdrawal, further interest for the period
between partial withdrawals will be calculated
in accordance with subsection (4) with
subsection (4)(a) based on the balance
remaining after the last partial withdrawal;
(c) interest for the period between the last partial
withdrawal and the full withdrawal will be
calculated in accordance with subsection (4)
with subsection (4)(a) based on the balance
remaining after the last partial withdrawal.”.

2015, No. 18 National Provident Fund Amendment 5

7. Insertion of new provision - After section 79 of the
Principal Act insert:

“79A. Unclaimed benefit - A beneficiary who is entitled
to a benefit under the Senior Citizens Benefit Fund must claim
the benefit within one (1) year from the date of entitlement to
receive that benefit.”.

8. Transitional - At the commencement of this Act, any
current Deputy Chief Executive Officer continues until his or her
appointment expires or is terminated.

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The National Provident Fund Amendment Act 2015
is administered by the Samoa National Provident Fund.