National Retirement Benefits Scheme (Amendment) Act 2014

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National Retirement Benefits Scheme (Amendment) Act 2014


Act 25 of 2014





C
T

NATIONAL RETIREMENT BENEFITS

SCHEME (AMENDMENT) ACT 2014


National Retirement Benefits Scheme
(Amendment) Act 2014 Arrangement of Sections





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Act 25 of 2014 Page 3




C
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NATIONAL RETIREMENT BENEFITS SCHEME

(AMENDMENT) ACT 2014

Arrangement of Sections

Section

1 Short Title .............................................................................................................. 5
2 Long title amended ................................................................................................ 5
3 Section 2 amended ................................................................................................. 5
4 Sections 3, 4 and 5 replaced ................................................................................... 6
5 Section 6 amended ................................................................................................. 7
6 Section 7 amended ................................................................................................. 8
7 Section 8 amended ................................................................................................. 8
8 Section 9 amended ................................................................................................. 8
9 Sections 10(4), 10(5),11(1), 30(1) and 30(3) amended .......................................... 9
10 Section 14 amended ............................................................................................... 9
11 Section 15 amended ............................................................................................... 9
12 Section 23 amended ............................................................................................... 9
13 Section 29 amended ............................................................................................... 9
14 Section 30 repealed .............................................................................................. 10
15 Section 35 amended ............................................................................................. 10
16 Section 40 replaced .............................................................................................. 10
17 Section 42 replaced .............................................................................................. 10
18 Section 43, 44 and 45 replaced ............................................................................ 11
19 Section 56 repealed .............................................................................................. 11
20 Section 59 amended ............................................................................................. 11
21 Section 61 amended ............................................................................................. 11
22 Section 64 replaced .............................................................................................. 12
23 First Schedule amended ....................................................................................... 12
24 Second Schedule amended ................................................................................... 12
25 Part II and IV heading amended .......................................................................... 12
26 Part VI heading amended ..................................................................................... 12

Arrangement of Sections
National Retirement Benefits Scheme

(Amendment) Act 2014





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27 Reference to Scheme replaced ............................................................................. 12
28 Reference to Organisation replaced ..................................................................... 12




National Retirement Benefits Scheme (Amendment) Act
2014 Section 1





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C
T

NATIONAL RETIREMENT BENEFITS SCHEME

(AMENDMENT) ACT 2014

Act 25 of 2014

AN ACT TO AMEND THE NATIONAL RETIREMENT BENEFITS

SCHEME ACT 2010

I assent,

TUPOU VI,

3
rd

December 2014.

BE IT ENACTED by the King and Legislative Assembly of Tonga in the

Legislature of the Kingdom as follows-

1 Short Title

(1) This Act may be cited as the National Retirement Benefits Scheme

(Amendment) Act 2014.

(2) The National Retirement Benefits Scheme Act 2010, as amended, is referred

to in this Act as the Principal Act.

2 Long title amended

In the English version only, the long title of the Principal Act is amended by deleting

the word ―SCHEME‖ and replacing it with the word ―FUND‖.

3 Section 2 amended

Section 2 of the Principal Act is amended as follows —

Section 4
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(a) by deleting the definition of ―active member‖ and replacing it with

―means a member in respect of whom a contribution in respect of

employment is payable under the Act‖;

(b) by deleting the definition of ―date of entry‖ and replacing it with

―means in respect to any member of the Fund the date in which the first

contribution is payable to the Fund on his behalf‖;

(c) in the definition of ―employee‖ by deleting the word and number ―age

65‖ and replacing them with the words ―the retirement age‖;

(d) by deleting the definition of ―inactive member‖ and replacing it with

―means a member who ceases employment and advised by the

employer‖;

(e) the words ―Medical Board‖ and its definition are deleted;

(f) the word ―Organisation‖ and its definition are deleted;

(g) the words ―pension age‖ and definition are deleted;

(h) the word ―pensioner‖ and its definition are deleted;

(i) the word ―Scheme‖ and its definition are deleted; and

(j) by inserting the following words and definition in the appropriate

places —

――casual worker‖ means an employee who has no on-going

expectation of permanent employment, and who —

(a) has no fixed hours of work;

(b) has an irregular pattern of working days; and

(c) is paid at the end of each work period;‖

――retirement age‖ means 60 years or any older age up to 70 years

which an employer notifies the Fund to be the retirement age for any of

its employees;‖

――transfer contribution‖ means any amount of money transferred to

the Fund from another retirement scheme to the credit of a member;‖

――undischarged bankrupt‖ includes a person adjudged by a Court to

owe any amount of money, which remains outstanding.‖.

4 Sections 3, 4 and 5 replaced

Sections 3, 4 and 5 of the Principal Act are deleted and replaced with the following -

―3 National Retirement Benefits Fund

(1) There shall be a National Retirement Benefits Fund operating in

accordance with this Act.

(2) The Fund shall be an autonomous body with the responsibility of

implementing this Act.

National Retirement Benefits Scheme (Amendment) Act
2014 Section 5





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(3) The Fund shall be a body corporate with perpetual succession and a

common seal and shall have all the rights and duties of a body

corporate.

(4) The Fund may sue and be sued in its corporate name and may enter into

contract and may acquire, purchase or lease property, and may convey,

assign, transfer, mortgage or otherwise dispose of any real or personal

property or any interest vested in the Fund upon such terms as the

Board determines to be appropriate in the circumstances of each

transaction.

4 Supervision of the Fund

(1) The general direction and supervision of the Fund shall vest in the

Board of Directors.

(2) The Directors shall act in good faith, in the best interest of the Fund and

in accordance with this Act.

5 Board of Directors

(1) The Board of Directors shall consist of 7 members appointed by the

Minister in accordance with regulations made under this Act.

(2) The Minister shall appoint one of the Directors to be Chairman of the

Board, and another to be Deputy Chairman.

(3) A director shall hold office for a term of 3 years, and may be

reappointed after the expiry of his term of office.

(4) No person may be appointed as a Director if he is over the age of 70

years.

Provided that a Director who attains the age of 70 years during his term

of office shall continue to be a Director until the expiry of that term of

office.

(5) Directors shall be paid such remuneration, travelling and subsistence

allowances as the Board may determine in consultation with the

Remuneration Authority.

(6) The Chief Executive Officer shall perform the function of secretary of

the Board.

(7) Upon cessation of office of a Director, other than an expiry of his full

term of office, the Minister shall appoint a replacement Director, in

accordance with the regulations, for the remaining part of the term of

the former Director.‖.

5 Section 6 amended

Section 6 of the Principal Act is amended by —

(a) deleting paragraph (c) of subsection (1) and replacing it with the

following —

Section 6
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―(c) on which he is disqualified under subsection (2);‖;

(b) deleting paragraph (b) of subsection (2) and replacing it with the

following —

―(b) who has been disabled under clause 23 of the Constitution;‖; and

(c) by inserting the following as paragraph (e) of subsection (2) —

―(e) who is a member or representative of a complying scheme.‖.

6 Section 7 amended

Section 7(1) of the Principal Act is amended —

(a) in paragraph (b) by inserting the words ―finances of the‖ immediately before

the word ―Fund‖ (first appearing);

(b) in paragraph (d) –

(i) in the English version only, by deleting the word ―organisation‖ and

replacing it with ―Fund‖; and

(ii) by deleting the first proviso; and

(c) in paragraph (l) by deleting the word ―less‖ and replacing it with the word

―more‖.

7 Section 8 amended

Section 8 of the Principal Act is amended —

(a) by deleting subsection (2) and replacing it with the following —

―(2) Board meetings shall be convened at least once every two months to

consider the Fund’s performance and other matters within the

responsibility of the Board.‖;

(b) by deleting subsection (6) and replacing it with the following —

―(6) At the absence of the Chairman at a meeting of the Board, the Deputy

Chairman shall be Acting Chairman for that meeting, but if the

Chairman and Deputy Chairman are both absent the Directors present

shall appoint an Acting Chairman for that meeting.’’; and

(c) by inserting the following as subsection (9) —

―(9) Notwithstanding any other provision of this Act, a Director may

undertake any professional work for the Fund and receive remuneration

there from.‖.

8 Section 9 amended

Section 9 of the Principal Act is amended —

National Retirement Benefits Scheme (Amendment) Act
2014 Section 6





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(a) by deleting the heading and replacing it with the words ―Fund’s Monies‖;

(b) in subsection (1) by deleting the words ―there shall be established the National

Retirement Benefits Fund, into which shall be paid‖ and replacing them with

the words ―the Fund’s monies shall consists of‖;

(c) in subsection (2) by deleting the word ―Fund‖ and replacing it with the words

―Fund’s monies‖.

9 Sections 10(4), 10(5),11(1), 30(1) and 30(3) amended

Sections 10(4), 10(5), 11(1), 30(1) and 30(3) of the Principal Act are amended by

deleting the words ―general revenue‖ wherever they appear and replacing them with

the words ―operating account‖.

10 Section 14 amended

Section 14 of the Principal Act is amended —

(a) in subsection (1) by deleting the word ―Fund‖ and replacing it with the words

―Fund’s monies‖;

(b) by deleting subsection (2) and replacing it with the following –

―(2) The cost incurred in implementing the Act and administering the Fund

shall be deducted from the income of investments or as prescribed by

Regulations.‖; and

(c) by repealing subsection (3).

11 Section 15 amended

Section 15(1) of the Principal Act is amended by deleting —

(a) the words ―with the approval of the Minister,‖; and

(b) the proviso.

12 Section 23 amended

Section 23 of the Principal Act is amended by deleting the words ―form the month‖

and replacing them with ―from the date‖.

13 Section 29 amended

Section 29 of the Principal Act is amended by deleting ―15 days‖ and replacing it

with ―28 days‖.

Section 16
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14 Section 30 repealed

Section 30 of the Principal Act is hereby repealed.

15 Section 35 amended

Section 35 of the Principal Act is amended —

(a) in subsection (1) by deleting —

(i) the words ―pension benefit‖ and replacing them with the words

―retirement benefit‖;

(ii) in the English version only, the words ―since the date of coming into

force of this Act‖; and

(iii) the proviso; and

(b) by repealing subsection (2).

16 Section 40 replaced

Section 40 of the Principal Act is deleted and replaced by the following-

―40 Benefit entitlement

(1) Subject to this Act, the Fund shall provide the Leaving Service Benefits

to a member in the following events —

(a) attainment of retirement age;

(b) permanent and total disablement before retirement age;

(c) death before retirement age; or

(d) early release of benefits.

(2) The Leaving Service Benefit is an amount payable to a member (or his

beneficiary) on the occurrence of any of the events specified in

subsection (1), which is equal to the sum of —

(a) employer’s contribution;

(b) employee’s contribution;

(c) voluntary contribution;

(d) transfer contributions;

(e) interests on investments; and

(f) insurance.‖.

17 Section 42 replaced

Section 42 of the Principal Act is deleted and replace by the following —

―42 Life insurance entitlement

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(1) If a member dies before retirement age, his Leaving Service Benefits

shall also include the amount of life insurance benefits declared by the

Board and in force at the date of death.

(2) A person who is only a voluntary contributor shall not be entitled to the

life insurance benefit.‖.

18 Section 43, 44 and 45 replaced

Section 43, 44 and 45 of Principal Act is deleted and replaced with the following —

“43 Nominated beneficiary

(1) Any member of the Fund may nominate one or more beneficiary to

receive the Leaving Service Benefits.

(2) The Court upon application would appoint a person to be the trustee of

a beneficiary if he is under 21 years of age.

44 Permanent and total disablement

Subject to this Act, the Leaving Service Benefits shall be payable to a member

who is under the retirement age if he is certified by the Chief Executive

Officer for Heath as suffering from permanent and total disablement for the

type of employment he has undertaken.

45 Death benefit

(1) The prescribed beneficiary shall be entitled to the Leaving Service

Benefits on the death of a member.

(2) When there are two or more children eligible as beneficiaries, they shall

be paid in equal portions.‖.

19 Section 56 repealed

Section 56 of the Principal Act is hereby repealed.

20 Section 59 amended

Section 59(1) of the Principal Act is amended by deleting the words ―under this

Scheme‖ and replacing them with the words ―by the Fund‖.

21 Section 61 amended

Section 61(d) of the Principal Act is amended by deleting the words ―pension or‖.

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22 Section 64 replaced

Section 64 of the Principal Act is deleted and replaced with the following —

―64 Confirmation of entitlement

The Fund shall contact every member at least once every year to confirm

continued eligibility to receive retirement benefits.‖.

23 First Schedule amended

The First Schedule of the Principal Act is amended by —

(a) deleting paragraph 2 and replacing it with the following —

―2 Any casual worker.‖; and

(b) repealing paragraph 6(b).

24 Second Schedule amended

The Second Schedule of the Principal Act is amended by deleting the words ―shall

be‖ and replacing them with the words ―shall not be less than‖.

25 Part II and IV heading amended

The headings of Part II and Part IV of the Principal Act are amended by deleting the

word ―SCHEME‖ and replacing it with the word ―FUND‖.

26 Part VI heading amended

The heading of PART VI of the Principal Act is amended by deleting the word

―BENEFITS‖ and replacing it with the words ―LEAVING SERVICE BENEFITS‖.

27 Reference to Scheme replaced

Except for the title of Part V, the Principal Act is amended by deleting the word

―Scheme‖ wherever it appears and replacing it with the word ―Fund‖.

28 Reference to Organisation replaced

The Principal Act is amended by deleting the word ―Organisation‖ wherever it

appears and replacing it with the word ―Fund‖.




Passed by the Legislative Assembly this 28
th
day of August 2014.

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