Public Service Provident Fund (Amendment) Law A LAW TO AMEND THE PUBLIC SERVICE PROVIDENT FUND ORDINANCE. BE it enacted by the National State Assembly of the Republic of Sri Lanka as follows: - Short title. 1. This Law may be cited as the Public Service Provident Fund (Amendment) Law. No. 37 of 1975. Amendment of section 2 of Chapter 434. 2. Section 2 of the Public Service Provident Fund Ordinance (hereinafter referred to as the " principal enactment "), is hereby amended as follows: - (1) by the repeal of subsection (2) of that section, and the substitution of the following new subsection therefor: - (2) A general account for the fund and a separate account for each contributor to the fund shall be opened and kept in such manner as the Director of Pensions may direct."; and (2) by the insertion, immediately after subsection (3) of that section, of the following new subsection: - "(4) Notwithstanding anything in this Ordinance any non-pensionable employee, not being a citizen of Sri Lanka, employed in any Sri Lanka mission abroad may, at his option, be exempted, by the board of management from his liability to make contributions under this Ordinance, and where such employee had been a contributor under this Ordinance prior to the date he is so exempted, his account in the fund shall be closed and he shall be paid such amount as would have been paid to him under section 14 of this Ordinance if he had left the service on satisfactory completion of his contract.". Insertion of new section 2A in the principal enactment. 3. The following new section is hereby inserted, immediately after section 2 of the principal enactment, and shall have effect as section 2A of that enactment: - " Past services of graduates in monthly paid posts to be treated as service. 2A. Where any person who is a graduate of a University and who held a pensionable post under the Government, resigned from such post to undergo training under the Graduate Training Scheme, and upon completion of the period of such training was appointed to a monthly paid post under the Government such person's previous service under the Government in a monthly paid post shall be deemed to be service in respect of which contributions are payable under this Ordinance and accordingly the provisions of this Ordinance shall apply to and in relation to such previous service of such person."', Replacement of section 4 of the principal enactment. 4. Section 4 of the principal enactment is hereby repealed and the following new section substituted therefor: 4. " Compulsory contributions to the fund. (1) Every non-pensionable employee shall, until the termination of his service with the Government, pay each month, as a compulsory contribution to the fund, six per centum of his consolidated salary. (2) The compulsory contribution of a non-pensionable employee for any month shall be calculated on the monthly salary of such employee, notwithstanding that the amount received as salary for that month is less than the monthly salary or that no amount whatever is received by way of salary for that month: Provided that where a contributor is on half-salary or no salary for a period exceeding two months continuously, he may elect to contribute, in respect of that part of the period which exceeds two months, at the rate of six per centum of any salary which he receives. (3) The contribution required or authorized to be paid by a non-pensionable employee under the preceding provisions of this section, shall be deducted from the salary of such employee and paid to the fund.". Replacement of section 5 of the principal enactment. 5. Section 5 of the principal enactment is hereby repealed and, the following new section substituted therefore : "Voluntary contribution to the fund. 5. Subject as hereinafter provided and subject to such conditions as may be prescribed, a non-pensionable employee may, in addition to his compulsory contribution, pay as a voluntary contribution to the fund an amount not exceeding six per centum of his monthly salary: Provided that the rate at which any such voluntary contribution is calculated shall not be varied except at half yearly intervals. Amendment of section 14 of the principal enactment. 6. Section 14 of the principal enactment is hereby amended by the insertion, immediately after paragraph (6) of that section, of the following new paragraph: (7) retirement approved by the Minister in charge of the subject of Public Administration on any grounds other than those specified in the preceding paragraphs". Amendment of section 16 of the principal enactment. 7. Section 16 of the principal enactment is hereby amended, by the insertion at the end of paragraph (6) of that section, of the following new proviso:-- Provided, however, that in the special circumstances of any particular case, the Minister may in his discretion, direct that such bonus and interest or any specified portion thereof be paid to the contributor". Replacement of section 17 of the principal enactment. 8. Section 17 of the principal enactment is hereby repealed and the following new section substituted therefor: - 17. "Payment on death of a contributor. (1)Subject to the provisions of this Ordinance, on the contributor- (a) if the amount payable does not exceed twenty thousand rupees, the Director of Pensions shall pay such amount to the person or persons nominated for the purpose by the contributor in the manner prescribed, or, if no such nomination has been made, to the credit of the estate of the deceased contributor or, at the discretion of the Director of Pensions, to the person or persons appearing to the Director of Pensions to be entitled by law to receive such amount ; (b) if the amount exceeds twenty thousand rupees, the Director of Pensions shall pay such amount to the credit of the estate of the deceased contributor : Provided that the Director of Pensions may make payment, not exceeding one thousand rupees in any one case to meet the expenses of the funeral of the deceased or to give immediate relief to the widow or children or other dependants of the deceased, if in the opinion of the Director of Pensions such relief is required. (2) Any payment made by the Director of Pensions under this section shall be valid and effectual against any demand made upon the Government, the board or the Director of Pensions by any other person in respect of the amount payable in respect of that contributor.". Replacement, of section 20 of the principal enactment. 9. Section 20 of the principal enactment is hereby repealed and the following new section substituted therefor: " Appointment of contributor to pensionable office tinder Government. 20. Where a contributor to the fund is appointed to a pensionable office in the state service and enters on the duties of such office- (a) the account of that contributor shall be closed on the day on which he enters on the duties of his new office; (b) the aggregate amount of the , bonuses credited by Government to the account of that contributor, together with the interest accrued on such bonuses shall be paid to Government out of the fund; and (c) the aggregate amount of the compulsory contributions and voluntary contributions, if any, made by that contributor to the fund together with interest accrued on such contributions shall be paid to that contributor out of the fund". Repeal of section 21 of the principal enactment. 10. Section 21 of the principal enactment is hereby repealed. Replacement of section 23 of the principal enactment 11. Section 23 of the principal enactment is hereby repealed and the following new section substituted therefor: " Deduction of sums due to Government or to Lady Lochore Loan Fund. 23. Before payment is made of moneys lying to the credit of a contributor's account in the fund, any sum or sums due from that contributor to the Government or to the Lady Lochore Loan Fund may be deducted from such moneys." Amendment of section 28 of the principal enactment. 12. Section 28 of the principal enactment is hereby amended by the substitution, for the definition of " salary ", of the following new definition:- " salary " means the consolidated salary and includes any wages and any personal allowance but no other payment or allowance whatsoever.. Retrospective operation of sections 4 and 5. 13. The amendments made to sections 4 and 5 of the principal enactment by this Law shall be deemed to have come into operation on the first day of January, 1972. Retrospective operation of section 28. 14. The amendments made in section 28 of the principal enactment by this Law shall be deemed to have come into operation from the first day of October, 1969