National Retirement Benefits Scheme Act 2010

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Subscribe Now for only USD$20 per month, or Get a Day Pass for only USD$4.99.
NationalRetirementBenefitsSchemeAct2010Gazetting


Act No. 41 of 2010




C
T

NATIONAL RETIREMENT BENEFITS
SCHEME ACT 2010





National Retirement Benefits Scheme Act 2010 Arrangement of Sections





to
Act No. 41 of 2010 Page 3




C
T

NATIONAL RETIREMENT BENEFITS SCHEME ACT
2010

Arrangement of Sections
Section

PART I - PRELIMINARY 7
1 Short title and commencement................................................................... 7
2 Interpretation ................................................................................................ 7

PART II - ADMINISTRATIONOF THE NATIONAL RETIREMENT
BENEFITS SCHEME 11
3 Administration of the Scheme ................................................................... 11
4 Status of the Organisation ............................................................................... 11
5 Establishment and constitution of the Board ................................................ 11
6 Resignation, disqualification and termination of office ....................................... 12
7 Rights and duties of the Board ........................................................................ 13
8 Procedures of the Board ........................................................................... 14

PART III - FINANCIAL PROVISIONS 15
9 Establishment of the National Retirement Benefits Fund .................................... 15
10 Purpose of the Fund ................................................................................. 15
11 Bank accounts of the Organisation ............................................................. 16
12 Investment for the Fund ............................................................................ 16
13 Exemption from tax ................................................................................... 16
14 Administrative expenses ........................................................................... 17
15 Declaration of the rate of interest.............................................................. 17
16 Advances by the Government .................................................................... 17
17 Auditing of accounts .................................................................................. 17
18 Actuarial review ......................................................................................... 18

Arrangement of Sections National Retirement Benefits Scheme Act 2010





Page 4 Act No. 41 of 2010
to



PART IV - CONTRIBUTIONS TO THE SCHEME 18
19 Liability to contribute .................................................................................. 18
20 Payment of contributions .......................................................................... 19
21 Payment of contributions .......................................................................... 19
22 Recovery of contributions from an intermediate employer .................................. 20
23 Late paid contributions .................................................................................... 20
24 Method of payment of contributions ............................................................. 20
25 Employers to furnish returns ..................................................................... 20
26 Appointment and powers of inspectors ......................................................... 21
27 Determination of contribution liability in certain cases ....................................... 21
28 Recovery of contributions ............................................................................... 21
29 Surcharge on late paid contributions .......................................................... 22
30 Unpaid contributions deemed to be paid ....................................................... 22
31 Voluntary contributors ............................................................................... 23
32 Statement of account ................................................................................ 23

PART V - EXEMPTION OF COMPLYING SCHEMES 23
33 Entitlement to exemption .......................................................................... 23
34 Conditions for complying schemes ..................................................................... 24
35 Employee’s credit on leaving a complying scheme ....... ................................... 24
36 Transfer within same group of complying scheme ....... ................................... 25
37 Obligation of exempted employer ................................................................ 26
38 Revocation of a certificate of exemption ....................................................... 26
39 Probation ......................................................................................................... 27

PART VI - BENEFITS 27
40 Benefit entitlement ..................................................................................... 27
41 Applications for benefits ............................................................................ 27
42 Entitlement to benefits .................................................................................... 28
43 Payment of retirement pension ................................................................. 28
44 Permanent and total disablement .............................................................. 28
45 Death benefit ............................................................................................. 29

PART VII - DETERMINATION OF CLAIMS AND QUESTION 29
46 Determination of claims .................................................................................. 29
47 Right of appeal ................................................................................................ 29
48 Establishment of Appeal Board ........................................................................ 30
49 Membership of Appeal Board. .................................................................... 30
50 Powers of the Appeal Board ............................................................................ 30

PART VIII - OFFENCES AND PENALTIES 30
51 Offences and Penalties ............................................................................. 30
52 Offences relating to officers ............................................................................ 31
53 Offences relating to contributions ............................................................. 31
54 Liability of officers of Corporation ................................................................. 32

National Retirement Benefits Scheme Act 2010 Arrangement of Sections





to
Act No. 41 of 2010 Page 5




55 Civil Proceedings ............................................................................................ 32
56 Loss of benefit through default or employer .................................................. 32

PART IX - MISCELLANEOUS 32
57 Power of Minister on exemptions ................................................................ 32
58 Power to Minister to make Regulations ............................................................... 33
59 Exemption from tax ................................................................................... 33
60 Overpayment of benefits ........................................................................... 33
61 Limitations on contributions and benefits ...................................................... 33
62 Insured person working abroad ................................................................. 34
63 Beneficiary abroad .................................................................................... 34
64 Confirmation of Entitlement ...................................................................... 34

FIRST SCHEDULE 35

EXEMPTIONS 35

SECOND SCHEDULE 36

RATES OF CONTRIBUTION 36



National Retirement Benefits Scheme Act 2010 Section 1





to
Act No. 41 of 2010 Page 7




C
T

NATIONAL RETIREMENT BENEFITS SCHEME ACT
2010

Act No. 41 of 2010

AN ACT TO PROVIDE FOR THE ESTABLISHMENT AND
ADMINISTRATION OF THE NATIONAL RETIREMENT BENEFITS

SCHEME AND RELATED MATTERS

I assent,
GEORGE TUPOU V,

1st October 2010.


BE IT ENACTED by the King and the Legislative Assembly of Tonga in the Legislature
of the Kingdom as follows:
____________________________________________________________________

PART I - PRELIMINARY

1 Short title and commencement

(1) This Act may be cited as the National Retirement Benefits Scheme Act 2010.

(2) This Act shall come into force on a date to be declared by His Majesty’s
Cabinet and notified in the Gazette.

2 Interpretation

In this Act, unless the contrary intention appears-

“Act” means the National Retirement Benefits Scheme Act 2010;

Section 2 National Retirement Benefits Scheme Act 2010





Page 8 Act No. 41 of 2010
to



“active member” means a member in respect of whom a contribution in
respect of insurance employment under the Act was paid during the last
financial year;

“amount of wages for the month” means the amount of wages earned by an
employee during a month of his employment;

“account” means the member’s account in respect of insurable employment
or voluntary contribution under this Act maintained by the National
Retirement Benefits Organisation;

“Appeal Board” means an ad hoc National Retirement Benefits Scheme
Appeal Board established under section 48 of this Act;

“balance” means the amount standing to the credit of the member of the
Scheme;

“beneficiary” means a person entitled to benefits under this Act;

“Board” means the National Retirement Benefits Scheme Board f Directors
established under this Act;

“Chief Executive Officer” or “CEO” means the Chief Executive Officer of
the Organisation appointed by the Board in accordance with section 7(1)(c);

“certificate of exemption” means the certificate issued by the Board to a
complying scheme under Part V of this Act;

“child” means a legitimate biological child, stepchild, and a legally adopted
child and shall include a posthumous child of a memb r;

“complying scheme” means a retirement benefits scheme in existence o the
date of coming into fore of this Act that is certified by the Board as complying
with the conditions in sections 34 and 35;

“contribution ” means the sum payable to the Organisation by way or
contributions specified in section 20;

“contribution schedule” means the schedule provided by the Organisation
for the purpose of the collection of contributions;

“date of entitlement” means the date on which a member of the Scheme
qualifies for a benefit in accordance with the provision of this Act;

“date of entry” means in respect to any member of the Scheme the first day
of the month in which the first contribution is payable to the Scheme on his
behalf;

“Director” means any Board member;

“domestic worker” means a person employed in connection with the work of
a private dwelling-house and not in connection with the trade, business or
profession carried out by the employer in the dwelling-house such as cook,
house-worker, child’s nurse, gardener, laundry worker, security officer, or a
driver of a vehicle licensed for private use;

National Retirement Benefits Scheme Act 2010 Section 2





to
Act No. 41 of 2010 Page 9




“earnings” means all emoluments due to an employee in respect of services
performed under a contract of service whether paid d ly, weekly, fortnightly,
monthly or at any other intervals, and shall include any bonus, commission or
allowance payable by the employer to the employee wh ther such bonus,
commission or allowance is payable under his contract or service or
otherwise, but does not include-

(a) overtime payment;

(b) gratuity;

(c) retrenchment, redundancy or termination payment;

(d) retirement benefits;

(e) any sums payable by an employer, whether or not prescribed by
legislation, in respect or sickness, maternity or wk-related injury;

(f) any travelling allowance or the value of any travel concession or
benefit; and

(g) any payments made by an employer to an employee for Reimbursement
or expenses incurred for the purposes of his employment;

“employee” means any person aged 15 years or more and under age 65, not
being a person of any of the description specified in the First Schedule, who
works for an employer in Tonga under a contract of service or apprenticeship
whether written or oral, expressed or implied, for remuneration, and includes
a Tongan subject employed under a contract of service entered into in Tonga
as a master or member of the crew of any vessel, or as captain or member of
the crew of any aircraft, the owners of which have place of business in
Tonga;

“employer” means any person, partnership, enterprise, undertaking,
organisation or body corporate employing an employee under a contract of
service or apprenticeship, whether written or oral, expressed or implied for
remuneration; and includes the owners of the vessel or aircraft referred to in
the definition “employee”;

“ financial year” means the period from 1 July in any year to 30 June in the
following year;

“Fund” means the Fund established under section 9;

“ inactive member” means a member in respect of whom no contribution was
paid in the last financial year;

“ insurable earnings” means the earnings on which liability arises for the
payment of contributions under this Act;

“ insurable employment” means employment in respect of which
contributions are payable under this Act;

“ intermediate employer” means a person who employs employees to work
for another employer;

Section 2 National Retirement Benefits Scheme Act 2010





Page 10 Act No. 41 of 2010
to



“ liquidator ” means a person appointed or assuming the position of liquidator,
receiver, trustee-in-bankruptcy, mortgagee-in-possession, or executor of a
deceased’s estate;

“Medical Board” means a medical board established in accordance with
section 44 of this Act;

“member” means a person registered as a contributor to the Sc me;

“member’s account” means the account established for a member to receiv
all compulsory contributions and interests;

“minimum sum” means the sum declared by the Board under section 42;

“Minister ” means the Minister of Finance;

“Organisation” means the National Retirement Benefits Organisation;

“outworker ” means a person to whom articles are given to be made up,
cleaned, washed, altered, ornamented, finished , repaired or adapted for sale in
the person’s own home or on other premises not under th control or
management of the person who gave out the materials o rticles;

“pension age” means the age of 60;

“pensioner” means a person receiving a pension or installment under this
Act;

“permanent and total disablement” means a condition as a result of which
a member is medically certified to the satisfaction f the Board as
permanently incapacitated to such an extend as to be unable to earn from his
usual or any other suitable occupation more than one-third of the normal rate
of earning in this occupation;

“prescribed beneficiary” means the person, at the date of death, is nominated
by the member, or if no such person, then to –

(a) his spouse, if none;

(b) his child or children, or if none;

(c) his father or mother;

“ rate of interest” means the rate declared by the Board as the interest rate to
be credited to the accounts of each member;

“Scheme” means the national retirement Benefits Scheme;

“statement of account” means the statement of account issued by the Board
to each member;

“ total balance” means the accumulated total of –

(a) all contributions paid by and on his behalf in respect of insurable
employment and any interest added from time to time;

(b) all contributions and interest in his voluntary ccount, if any;

National Retirement Benefits Scheme Act 2010 Section 3





to
Act No. 41 of 2010 Page 11




(c) any amounts transferred to his account in respect of periods of
exempted employment in a complying scheme; and

(d) less any deductions due and outstanding under section 10(5);

“voluntary contribution ” means the contribution paid by voluntary
contributors;

“voluntary contributor ” means a person who registers with the Scheme as a
voluntary contributor; and

“wages” has the same meaning as “earnings”.

PART II - ADMINISTRATIONOF THE NATIONAL
RETIREMENT BENEFITS SCHEME

3 Administration of the Scheme

(1) There shall be a National Retirement Benefits Organisation to be in charge of
the National Retirement Benefits Scheme in accordance with this Act.

(2) The general direction and supervision of the Organisation shall vest in the
Board.

(3) The Board members shall act in good faith in the best interests of the Scheme
and in accordance with the Act.

4 Status of the Organisation

(1) The Organisation shall be established as an autonomous body accountable to
the Minister and with the responsibility of implementing this Act.

(2) The Organisation shall be a body corporate with perpetual succession and a
common seal and shall have all rights and duties of a body corporate.

(3) The Organisation may sue and be sued in its corporate name and may enter
into contracts 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 Organisation upon such terms as the
Board determines to be appropriate in the circumstances of each transaction.

5 Establishment and constitution of the Board

(1) The Board is hereby established.

(2) The Board shall be appointed by the Minister and shall consist of-

(a) three persons representing employee members of the Scheme;

(b) three persons representing employer contributors to the Scheme; and

Section 6 National Retirement Benefits Scheme Act 2010





Page 12 Act No. 41 of 2010
to



(c) one person with relevant experience and qualific t ons who shall have
no right to vote as a Board Member.

(3) The employer and employee representatives shall be elected by the
contributing employers and employees respectively and thereupon are
appointed by the Minister.

Provided that the first such election shall be held amongst the employers and
employees eligible under this Act for compulsory participation in the Scheme.

Provided further that employees of the Organisation shall be ineligible for
election to the Board.

(4) Members of the Board shall be appointed for a term of three years.

(5) Directors may be re-appointed after expiry of their term of office for up to a
maximum of two full terms whether or not these are consecutive terms.

Provided that regulations shall prescribe the eligibility of a member of the first
Board to participate in elections for the second Board.

(6) The Board shall elect the Chairman.

(7) Directors shall be paid such remuneration, travelling and subsistence
allowances as the Minister may determine.

(8) The CEO shall perform the function of Secretary of the Board.

(9) Upon cessation of office of a Director, otherwise than on expiry of his term of
office, the Minister at the earliest opportunity and, in any case, within thirty
days, shall appoint a replacement Director who shall be the next eligible
person under the last held election for employer or employee representatives,
or a person appointed by the Minister under sub-section (2)(c), as the case
may be, and the duration of the appointment shall be for the remaining part of
the term of the former Director.

6 Resignation, disqualification and termination of office

(1) A Director shall hold office until the date-

(a) of his resignation by notice in writing to the Chairman or, in the case of
the resignation of the Chairman, by notice in writing to the Minister;

(b) of his death;

(c) on which he is declared bankrupt under any law relating to bankruptcy,
or a court finds him guilty of a criminal offences;

(d) on which he is certified as mentally or physically incapable of fulfilling
the office of Director;

(e) of his removal in accordance with any procedures adopted by the Board
for the appointment or removal of Directors for persistent non-
attendance at duly called meetings of the Board;

National Retirement Benefits Scheme Act 2010 Section 7





to
Act No. 41 of 2010 Page 13




Provided that a Director shall be deemed to have vacated his office upon his
failure to attend three consecutive duly called meetings of the Board without
the prior permission of the Chairman; and

(f) of expiry of his term of office.

(2) No person shall be appointed or remain a Director-

(a) who has an undischarged bankrupt;

(b) who has been convicted of an offence;

(c) who is or becomes a member of the Legislative Assembly; or

(d) who has, in the case of a person having professi nal qualifications,
been disqualified or suspended from practicing his profession by the
order of any competent authority.

7 Rights and duties of the Board

(1) The Board shall perform the following duties to-

(a) advise the Minister on appropriate plans for the implementation and
development of the Scheme both on its own initiative and in response
to specific requests from the Minister;

(b) manage the Fund as Trustee and approve the income and expenditure
accounts,

Provided that the Board members shall not-

(i) make profit for themselves from the Fund;

(ii) put themselves in a position where there is a conflict between
their duty to the members and their own personal interests; or

(iii) take advantage of information gained as a Trustee;

(c) appoint staff for the administration of the Scheme consisting of –

(i) a Chief Executive Officer with such duties as the Board may
delegate; and

(ii) such other staff as are, in opinion of the board, necessary for the
efficient and effective administration of the Scheme, including
inspectors having the powers set out in section 26.

(d) adopt personnel and remuneration structures for the organisation that
are not less favourable in their entirety than those applying to public
servants;

Provided that the conditions of service for the Organisation shall be
approved by the Minister;

Provided further that the Organisation shall be an employer within the
meaning of this Act;

Section 8 National Retirement Benefits Scheme Act 2010





Page 14 Act No. 41 of 2010
to



(e) determine applications for exemption by retirement benefit schemes in
existence at the date of introduction of this Act and to review the
reports submitted by approved complying schemes;

(f) determine benchmarks for the Scheme’s operation;

(g) maintain communications with registered employers and employees;

(h) consider and make recommendations to the Minister relating to changes
in contributions or benefits under the Act;

(i) co-opt suitably qualified persons to advise the Board and sub-
committees established by the Board and to incur expenditures for this
purpose;

(j) determine the Organisation’s administrative expenses on submissions
by the CEO;

(k) consider and recommend draft Regulations and rules for approval;

(l) arrange for actuarial review of the Scheme as required and at intervals
of not less than five years;

(m) submit to the Minister annual reports on the opration of the Scheme;
and

(n) do any other act authorized under this Act.

(2) In any instance of submitting proposals to the Minister for changes in
contributions or benefits, or commenting on any such proposals referred to it,
the Board shall attach an actuarial report, or its equivalent, on the financial
implications of the proposals.

8 Procedures of the Board

(1) Subject to this Act and any Regulations made under it, the Board may regulate
its own procedures and shall have the power to make rules for the conduct of
its proceedings.

(2) Board meetings shall be convened on a minimum of one meeting per month to
consider the Organisation’s performance and other matters within the
responsibility of the Board.

(3) The Chairman has the right to convene meetings at any time as required to
carry out the Board’s duties expeditiously.

(4) Any four Directors present at a meeting shall constitute a quorum.

(5) Resolutions of the Board shall be carried by majority voting and in the case of
an equal number of votes; the Chairman shall have a deciding vote.

(6) In the absence of the Chairman at a meeting of the Board, the members
present shall appoint an Acting Chairman for that meeting.

(7) A Director shall not communicate or reveal to any person or any organisation
any facts or information of any kind acquired by him as a member of the

National Retirement Benefits Scheme Act 2010 Section 9





to
Act No. 41 of 2010 Page 15




Board except as may be required for the due discharge of his duties as
Director.

(8) A Director having directly or indirectly by himself, his spouse or children, or
any other person, any interest in agenda items or subjects to be discussed by
the Board or in Committees of the Board of which he is member shall disclose
to the Board or the Committee, as the case may be, the fact of his interest and
the nature thereof as soon practicable after the relevant fact has come to his
knowledge and shall absent himself with the permission of the Chairman
when such agenda items come under consideration.

PART III - FINANCIAL PROVISIONS

9 Establishment of the National Retirement Benefits Fund

(1) For the purpose of the Act, there shall be establi hed the National Retirement
Benefits Fund, into which shall be paid-

(a) all contributions required to be made under this Act;

(b) moneys earned or arising from any investment, property or other
transactions, mortgages, charges or rents vested in the Organisation;

(c) any fines, surcharges, or other payments due to the Organisation under
this Act;

(d) any sums paid by the Government, or other body or bodies, to finance
the initial implementation of the Act or to enable it to meet all financial
obligations specified in subsection (2); and

(e) any other income or payments due to the Fund.

(2) The Fund shall be expended for the purpose of-

(a) meeting all payment required to be made under this Act;

(b) investments under this Act, including the expenses incurred in
undertaking the investments;

(c) payment of life insurance benefit;

(d) meeting all expenses, costs and expenditures properly incurred or
accepted by the Board in the execution of its powers and duties; and

(e) repayment of advances or loans obtained by the Board for the
implementation of this Act.

10 Purpose of the Fund

(1) Subject to this Act, the Fund shall provide benefits in respect of the
retirement, permanent total disablement or the death of a member of the
Scheme, as specified in this Act and Regulations.

Section 11 National Retirement Benefits Scheme Act 2010





Page 16 Act No. 41 of 2010
to



(2) The Organisation shall maintain individual accounts for each member and
shall credit all contributions paid by and on behalf of the member and any
interest as specified in section 15 for the purpose of subsection (1).

(3) The Fund shall pay benefits, other than life insurance, from individual
accounts of a member in the form of instalments or a lump-sum or a
combination of both.

(4) Life insurance benefits shall be payable in lump-sums from the general
revenues of the Fund.

(5) The Organisation shall deduct from the account of each active member, other
than a voluntary contributor, in respect of each financial year the premium for
life insurance as may be prescribed by the Board and these premiums shall be
credited to the general revenue of the Fund.

11 Bank accounts of the Organisation

(1) The Organisation shall establish and maintain such bank account or accounts,
as determined by the Board, for the purpose of the financial management of
the Scheme and its general revenue.

(2) The bank account of the Organisation shall be maintained at the National
Reserve Bank of Tonga, or other bank licensed by the National Reserve Bank
of Tonga or other bank licensed to operate in the Kingdom, or in the case of
overseas accounts, those banks approved by the National Reserve Bank of
Tonga.

(3) The Organisation’s account or accounts signatories shall be such persons as
may be authorised by the Board for that purpose.

12 Investment for the Fund

(1) The Board shall invest all monies available for investment as prescribed by
Regulations.

(2) The Board shall devise investment strategies for investments of the Fund,
including investments in other countries that meet cri eria for trustee
management of retirement benefit funds.

Provided that the Board shall request approval for undertaking overseas
investments from the National Reserve Bank of Tonga and that any such
approval shall be given for periods of not less than one year.

13 Exemption from tax

No tax, duty, levy, or any other Government impost shall be payable by the
Organisation on Fund monies, including investment earnings.

National Retirement Benefits Scheme Act 2010 Section 14





to
Act No. 41 of 2010 Page 17




14 Administrative expenses

(1) All expenses properly incurred in the implementation of this Act and the
administration of the Scheme shall be paid out of the Fund.

(2) The costs incurred in implementing the Act and administering the Scheme
shall be deducted from the income of the Scheme.

(3) Notwithstanding subsection (1), expenditures may be incurred by the
Organisation out of the Fund up to such amounts precribed by Regulations.

15 Declaration of the rate of interest

(1) Subjects to this Act, at or before the end of each financial year, the Board
shall, with the approval of the Minister, declare a rate of interest in respect of
that year that shall be credited at such rates to the total amounts recorded as in
each member’s account, including voluntary accounts, at the commencement
of the financial year, as prescribed by Regulations.

Provided that no rate on interest shall be declared if the repayment of any
sums advanced by the Government under section 16 is not provided for to the
satisfaction of the Minster.

(2) Notwithstanding the provisions of subsection (1) where benefit entitlement
arises under the provisions of this Act and is to be calculated, interest shall be
first credited to the accounts in respect of the period from the beginning of the
financial year to the end of the month preceding the date of entitlement in
accordance with the rate of interest declared by the Board for the preceding
financial year, regardless of the fact that the rate of interest subsequently
declared by the Board in respect of that financial year may be greater or less
than this rate.

16 Advances by the Government

(1) If the Organisation is unable at any time to pay any sum that it is liable to pay
under the provisions of this Act, the Board shall submit a request for
assistance to the Minister with full information onthe financial shortfall and
proposals for the repayment of any future bridging loans from Government.

(2) The Board shall enter into an agreement with the Government on a repayment
schedule in respect of any sums of any sums so advanced by Government.

17 Auditing of accounts

(1) The Board shall have accounts prepared, within two months of the end of the
financial year, or within such further time of not more than one month as the
Minister may approve, in such form and including additional information,
statements and reports as required by the Minister in respect of that year.

Section 18 National Retirement Benefits Scheme Act 2010





Page 18 Act No. 41 of 2010
to



Provided that the Minister may request the preparation of interim accounts for
any period as he may determine.

(2) The account shall be submitted to the Auditor-General or another approved
auditor for an audit to be completed within six months of the end of the
financial year or of the period covered by the accounts, if shorter.

(3) The Minister shall within ten working days of completion of the audit cause
the accounts to be submitted for tabling in the Legislative Assembly during its
session on the first available sitting day.

(4) The reports under subsection (1) shall include a r port by the Board on the
investments of the Fund.

18 Actuarial review

(1) At interval of five years, or such shorter periods as the Board may determine,
an actuarial review shall be conducted into the operation of the Scheme.

(2) The actual report shall be considered by the Board and forwarded to the
Minister with the recommendations of the Board.

(3) The Organisation shall provide members with information on the findings and
recommendation of the actuarial review.

PART IV - CONTRIBUTIONS TO THE SCHEME

19 Liability to contribute

(1) Subject to this Act, every employer having one r more employees, other than
those in respect of whom the Board has issued a certificate of exemption, and
his employees shall be liable to contribute to the Scheme.

(2) Every employer and to whom this Act applies shall register with the
Organisation within such time and in such manner as in prescribed by the
Regulations.

(3) Where any person registered as an employer intends to cease being an
employer he shall notify the Organisation as soon as pr cticable.

(4) Where employees are employed through a sub-contractor, the following shall
apply-

(a) the contract between the principal employer andthe sub-contractor
shall included the name and address of the employer who is responsible
under the Act for the registration of employees who are assigned for
work under the contract and the payment of contributions;

(b) the responsibility of the principal employer may be transferred to the
sub contractor or another person through specific provisions of the

National Retirement Benefits Scheme Act 2010 Section 20





to
Act No. 41 of 2010 Page 19




relevant contract, but, in the event of a default on the part of the sub-
contractor or other person, as determined by the Organisation, the
principal employer shall be liable in all respects in respect of the
employees concerned; and

(c) the relevant contract shall be made available for inspection whenever
requested by an inspector appointed under section 26 of this Act or
other competent official and a copy shall be lodged with the
Organisation if requested in writing by the CEO.

20 Payment of contributions

(1) A contribution consisting of both the employer’s contribution and the
employee’s contribution shall be payable by the employer for each month in
respect of the whole or part of which wages are payable to the employee and
not otherwise.

(2) The contribution shall be calculated on the amount of wages payable to such
employee by such employer at the rates specified in the Second Schedule.

(3) Subjects to this Act, all contributions shall be payable monthly unless
otherwise prescribed by Regulations.

(4) All monthly contributions shall be payable in the end of every month, but
where the employment is for a period of less than a month, on the last day of
the employment.

(5) Where two or more contributions are paid in respect of the employment of
one insured person for the same month they shall be counted as single
monthly contribution.

21 Payment of contributions

(1) Subject to this Act, the employer shall be entitled to deduct the employee’s
contribution form the employee’s wages for payment to he Fund and notice
of such deduction shall be furnished to the employee in writing.

Provided that-

(a) no such deduction shall be made from any wages other than that which
related to the period or part or the period in respect of which the
contribution is payable; and

(b) where the employer has failed to deduct and paythe employee’s
contribution under this section, the employer shall be responsible for
paying the employee’s outstanding contribution with no right of
recovery from the employee.

(2) Notwithstanding any contract to the contract to the contrary, the employer
shall not be entitled to deduct the employer’s contribu ion from any wages
payable to an employee or otherwise to recover it from him.

Section 22 National Retirement Benefits Scheme Act 2010





Page 20 Act No. 41 of 2010
to



(3) Any sum deducted by the employer from wages under this Act shall be
deemed to have been entrusted to him by the employee for the purpose of
paying the contribution in respect of which it was deducted.

22 Recovery of contributions from an intermediate e mployer

(1) An employer, who has paid a contribution in respect of an employee
employed by or through an intermediate employer or sub-contractor, shall be
entitled to recover the amount of the contribution so paid (that is to say the
employer’s contribution as well as the employee’s contribution, if any) from
the intermediate employer or sub-contractor, as the case may be, either by
deduction from any amount payable to him by the principal employer under
any contract, or as a debt payable by the intermediat employer or sub-
contractor.

(2) The intermediate employer or sub-contractor shall be entitled to recover the
employee’s contribution from the employee employed by or through him by
deduction from wages and not otherwise.

23 Late paid contributions

Contributions shall be payable in respect of an employee form the month the
employee enters into insurable employment and such contributions are payable as
arrears even though the employment to which this Act applies or the employees have
not been registered with the Organisation.

Provided that-

(a) An employer who has paid arrears of contributions in respect of an employee
will only be entitled to recovered from the wages payable, notwithstanding
the proviso to section 21(1), the employee’s share of the contributions due
within a maximum of the last proceeding six months prior to the date of
payment; and

(b) The Organisation shall arrange for the deduction of such arrears of the
employee’s share by the employer over a period for the purpose of avoiding
financial hardship to the employee.

24 Method of payment of contributions

The Minister may prescribe method of payment of contributions by Regulations.

25 Employers to furnish returns

(1) Every employer shall submit to the Organisation, such schedules returns
relating to persons employed by him as required by Regulations.

National Retirement Benefits Scheme Act 2010 Section 26





to
Act No. 41 of 2010 Page 21




(2) The Organisation may require an employer or any other person where it has
reason to believe that a return should have been submitted, to furnish such
particulars as it may consider necessary to determin the extent, if any, of
liability to contribute to the Fund on behalf of the employees.

(3) Every employer shall maintain such registers and records in registers and
records in respect of employment as may be prescribed by Regulations.

26 Appointment and powers of inspectors

(1) The Board shall appointed inspectors and issue them with identification.

(2) Inspectors shall have the power to –

(a) enter at reasonable times, all premises where a p rson or persons are
believed to be engaged as employees, and any other place only with a
court order;

(b) examine all documents relevant to participation in the Scheme and if
necessary to remove such documents as are essential to the
investigations;

(c) question and take statements in writing from persons, including
employer, employees and their staff;

(d) give official warnings to persons who are in breach; and

(e) compile official reports and statements of their investigations.

(3) An employer, within normal working hours shall produce for inspection the
records and copies of contribution schedules or any other documents relating
to liability to contribute, for inspection if request d by an inspector.

27 Determination of contribution liability in certa in cases

(1) The Organisation may determine on the basis of inf rmation available to it,
the amount of contributions payable in respect of the employees of an
employer where-

(a) the employer has defaulted under this Act; and

(b) the Organisation has been obstructed in the exercise of its functions.

(2) The determination made by the Organisation under subsection (1) shall be
sufficient proof of a debt for recovery under section 28.

28 Recovery of contributions

(1) Any contribution or other amount payable under this Act may be recovered as
a debt due to the Organisation.

(2) A liquidator shall be required to inform the Organisation in writing within
fourteen days of his appointment or assumption of this responsibility and shall

Section 29 National Retirement Benefits Scheme Act 2010





Page 22 Act No. 41 of 2010
to



not, without leave of the CEO, make any distribution f such property,
business or estate until receipt of a claim by the Organisation.

(3) The CEO shall notify the liquidator in writing of the amount of any unpaid
contributions and payable from the assets in the possession or control of the
liquidator and such notice shall be served by the Organisation within two
months of being served with a notice under subsection (2).

(4) Subject to subsection (5) a liquidator shall set aside out of the assets and the
proceeds of sale of any asset (s) of the employer the amount notified by the
CEO under subsection (3) to the extent that such assets are available for this
purpose, and shall be liable to the extent of the amount set aside for the
contribution due by the disposal of the employer’s as et(s).

(5) Nothing in subsection (4) shall prevent the liquidator from paying any debt
that has a legal priority over the contributions refe red to in that subsection.

(6) The liquidator shall before distributing any assets under his control, obtain
from the CEO a certificate to the effect that the contributions payable under
the provisions of this Act by such person out of any estate under his control
have been paid to the satisfaction of the Board.

(7) If any distribution is made by the liquidator without first obtaining a
certificate under the provisions of subsection (3),then such person shall be
personally liable for any unpaid contributions together with any surcharge
payable under the provisions of section 29.

(8) Where two or more persons are liquidators in respect of a defaulting employer
or deceased the obligations and liabilities under this section shall apply to all
the liquidators but may be discharged by any of them.

29 Surcharge on late paid contributions

An employer shall be liable to pay a surcharge on the otal amount of all
contributions not so paid by him at the rate of 2 per cent in respect of each month or
part of each month after expiration of the period of 15 days following the month
concerned.

Provided that –

(a) in any case where the surcharge is calculated at less than $5, the surcharge
payable shall be $5; and

(b) the Organisation may remit in whole or part theamount of the surcharge
where the employer shows good cause for the delay in remitting contributions
to the Organisation.

30 Unpaid contributions deemed to be paid

(1) Where any employer fails to pay any contribution required under this Act, the
Board may credit to the employees’ account the amounts payable by the

National Retirement Benefits Scheme Act 2010 Section 31





to
Act No. 41 of 2010 Page 23




employer to the Organisation and shall charge such amounts to the general
revenues of the Organisation if-

(a) such failure was not due to the consent of the employee concerned;

(b) deduction were made from insurable earnings of the employee; or

(c) there is no prospect of recovery of the amount paid within a
reasonable time.

(2) The amount so credited to a member account shall be deemed to have been
paid in respect of him on the date of which such credit is made unless
otherwise determined by the Board.

(3) Nothing in this section prejudice the right of the Organisation to recover the
amount of such contributions together with any surcha ge due under this Act
from the employer and to credit the amounts recovered to the general
revenues of the Fund.

31 Voluntary contributors

(1) Subject to this Act, any person, or any category f persons as may be
prescribed, including citizens of Tonga living overs as, may apply to the
Organisation to contribute to the Scheme on their own behalf or on behalf on
another person.

(2) Voluntary contributors shall comply with the prescribed levels and methods of
payment of contributions to the Scheme.

(3) Persons exempted under paragraph 5 of the First Schedule shall not be entitled
to become voluntary contributors.

32 Statement of account

The Organisation shall issue statement of account to members and voluntary
contributors at annual intervals and when requested to do so in writing by members
and voluntary contributors.

PART V - EXEMPTION OF COMPLYING SCHEMES

33 Entitlement to exemption

(1) The Retirement Fund established under the Retirement Fund Act 1998 shall
be exempted from the provisions of this Act.

(2) The Board may issue a certificate of exemption fr m liability to contribute to
the Fund to an employer and employee if satisfied that-

Section 34 National Retirement Benefits Scheme Act 2010





Page 24 Act No. 41 of 2010
to



(a) the employer has before the effective date of this Act established a
retirement benefits scheme which, provides benefits quivalent to or
better than those provided under this Act; and

(b) the employer and trustees of that retirement fud concerned undertake
to make the necessary changes in the rules of that scheme within a
timescale set by the Board, in the order to conform to this Act on the
exemption of retirement benefit schemes.

(3) The Board shall give the employer of a retirement which is not exempted
under this section, notice that it is not so exempted whereupon-

(a) the provisions of this Act shall apply to him and his employees from a
date specified by the Board;

(b) no contribution shall be payable to the Fund in the month in which the
Board so informs the employer; and

(c) there shall be no liability for contributions to the Fund whilst an appeal
of the decision of the Board is under consideration.

(4) An exempted retirement benefit scheme have legal ntitlements that are equal
to or better than those specified in this Act, excluding life insurance, and
without rights to withdraw any part or the whole prior to the date of
entitlement to benefit.

34 Conditions for complying schemes

(1) An employer who provides a retirement benefit scheme for his employees
may submit an application for exemption from contribut ng to the Scheme in
the prescribed from within one month of the effective date of this Act, or such
longer period as the Board may determine.

(2) The Board may on an application for exemption-

(a) issue an employer with an interim certificate of exemption with
required modifications; and

(b) issue a final decision on the application for exemption as soon as
practicable.

35 Employee’s credit on leaving a complying scheme

(1) Where an employer who is a member of a complying scheme ceases to
participate in such a scheme or an employee leaves n employment or ceases
to contribute to a complying scheme without being entitl d to a pension
benefit, the amount of the employee’s credit in such s heme that represents
contributions to such retirement benefit scheme both y the employer and the
employee since the date of coming into force of this Act, together with any
interest thereon, shall be transferred to the Fund, within one month or such
further period as the Board may specify.

National Retirement Benefits Scheme Act 2010 Section 36





to
Act No. 41 of 2010 Page 25




Provided that the employer and employee concerned may, by mutual
agreement, elect to transfer to the Fund additional amounts or all such
amounts standing to the credit of the employee in the retirement benefit
scheme as represents the contributions paid to such scheme before the date of
coming into force of this Act.

(2) Notwithstanding the provisions in this section and section 36, where credit is
transferred to the Fund; the Board, may, upon receipt of a written request by a
member, or in the case of his death, his prescribed beneficiary:

(a) transfer amounts from a complying scheme; and

(b) if the transfer has been completed, determine that the various accounts
held in the name of the member or the prescribed beneficiary may be
combined in either the Scheme or a complying scheme for the purpose
of providing the best possible benefit.

36 Transfer within same group of complying scheme

(1) Where an employee-

(a) transfers from employment, that is certified as a complying scheme, to
employment under another employer of the same, group and where
such transfer is permitted by the rules of such a scheme, continues to
contribute thereto on the same terms and conditions, such employee,
shall not be deemed to have left an employment; and

(b) in accordance with the rules of such a scheme, th amount standing to
the credit of any employee consists in whole or in part of a policy of
life insurance such policy shall not transferred to the Fund, but shall be
dealt with in accordance with such rules.

(2) Subject to the rules of a complying scheme, an employee who takes up
employment with an employer with a complying scheme ay choose to
continue with or join the Scheme instead of the complying scheme, within one
month of commencing employment.

(3) If an employee chooses to leave the Scheme and joi a complying scheme,
contributions in respect of the employee shall not become payable to the Fund
but any amount standing to the credit of such employee shall remain in the
Fund.

(4) Where a complying scheme is wound up the amount standing to an
employee’s credit in such a scheme that represents contributions to such
retirement benefit scheme both by the employer and the employee since the
date of coming into force of this Act, together with any interest thereon shall,
be transferred to the Fund, and which amount the Board shall cause to be
credited to the employee.

(5) Where the assets of such a scheme are not sufficient to meet its liabilities, the
amount to be credited to the employee under subsection (4) shall be reduced
in such proportion as the Board may determine.

Section 37 National Retirement Benefits Scheme Act 2010





Page 26 Act No. 41 of 2010
to



Provided that where the amount standing to the credit of any employee
consists of a policy of life insurance, such policy shall not be transferred to
the Fund.

(6) Where under sub-section (4) any amount of contributions paid after this Act
came into force is transferred to the Fund, the employer and employee
concerned may, by mutual agreement, elect to transfer to the Fund additional
amounts or all such amounts standing to the credit of the employee in the
scheme, and if the Board approves such transfer, th employee shall be
credited with amount so transferred to the Fund.

37 Obligation of exempted employer

(1) An employer who has received a certificate of exemption in respect of this
Scheme-

(a) shall furnish the Organisation with such audited accounts as the Board
may require in respect of the complying scheme;

(b) may amend the rules of the complying scheme with the written
approval of the Board;

(c) furnish the Organisation with such particulars of those employees
contribution to this complying scheme as may be prescribed by the
Board; and

(d) provide such information specified by the Organis tion in respect of
persons entitled to benefits under the rules of the complying scheme.

(2) An employer of any complying scheme shall be subject to the same offences
and penalties in respect of deductions or contributions made under this Act.

(3) Any expenses incurred by the Organisation in enforcing the obligations of
complying schemes under this Act shall be reimbursed to the Organisation
from the funds of such complying schemes on the basis of such membership.

38 Revocation of a certificate of exemption

(1) The Board shall revoke an employer’s certificate of exemption where the
conditions for the certificate of exemption are notor are no longer met by the
employer unless the employer provides the Board with satisfactory
explanations or information in writing.

(2) Where the Board makes a revocation decision under subsection (1) it shall-

(a) inform the employer of its decision in writing;

(b) make the decision effective from the date on which it considers
entitlement to the complying scheme status has ceased; nd

(c) apply the provisions of sections 36(4) and (5) as if such funds were
wound up from that date.

National Retirement Benefits Scheme Act 2010 Section 39





to
Act No. 41 of 2010 Page 27




(3) The employer and employees concerned shall be lia le to contribute to the
Scheme form the date on which the certificate of exemption was revoked.

39 Probation

Where an employee is precluded by the rules of this employment’s complying
scheme from contribution thereto during a specified p riod of probation or other
periods of non-qualifying service under the rules of the scheme, any sum standing to
such employee’s credit in the Fund which represents contributions to the Fund both
by the employer and employee since the date on which such employment
commenced, together with any interest thereon, shall remain in the members account
in the Fund.

PART VI - BENEFITS

40 Benefit entitlement

(1) Subject to this Act, the Scheme shall provide benefits to a member in the
following events –

(a) attainment of pension age, or any age between ag 60 and age 65, in a
lump-sum or installments;

(b) permanent and total disablement before pension age, by payment of the
total balances held in the name of the member or in a lump-sum of up
to one third of the total balance and the remainder in installments;

(c) death before pension age, by payment of the total balance held in the
name of the member or payment in a lump-sum unless the beneficiary
requests in writing that the benefit due to him should be paid by a
lump-sum of up to one third of the total balance and the remainder in
instalments; and

(d) in the case of death before pension age of active members other than
voluntary contributors, a life insurance benefit equal to the average insurable
earnings of all members in the last financial year, provided that the amount of
life insurance benefit shall be the amount declare by the Board and in force at
the date of death.

(2) Any member of the Scheme may nominate one or more beneficiaries.

(3) The Court upon application shall appoint a person to represent the beneficiary
if he is under 18 years of age at the date of entitl ment.

41 Applications for benefits

Applications for benefits shall be submitted to theOrganisation in the prescribed
from with all documents and other information prescibed by Regulations.

Section 42 National Retirement Benefits Scheme Act 2010





Page 28 Act No. 41 of 2010
to



42 Entitlement to benefits

(1) Subjects to this Act a member shall be entitled at age 60 or at any age up to
age 65 to claim a retirement pension if his total balance is equal to or greater
than the minimum sum in force at the date of entitlement as prescribed by
Regulations.

(2) Where the total balance standing to the credit of a member is less than the
minimum sum, he shall be entitled only to the payment of this amount as a
lump-sum.

(3) If the total balance standing to the credit of a member is equal to or greater
than the minimum sum, he shall be entitled only to the lump-sum of one third
of the total balance and a monthly pension during his lifetime and in no event
to be less than a period of five years.

(4) The rate of the retirement pension shall be calcul ted by multiplying the total
balance, less than amount if any, to be paid as a lump-sum at the request of
the member, in accordance with subsection (5) with the prescribed annuity
factor.

(5) The member may elect to take up to one-third of the total balance as lump-
sum.

43 Payment of retirement pension

(1) Subject to this Act, retirement pension is payable from the months following
the month-

(a) in which the member attains age 60; or

(b) in which the member attains age 65; or

(c) between (a) and (b) during which the last contribu ion is paid.

(2) Payment shall continue up to the months in which the pension dies or to the
expiry of five years of payment, whichever is the later.

(3) Where a pensioner dies before expiration of five years of payment, the
balance of the pension shall be paid in a lump-sum unless the prescribed
beneficiary elects to receive payments for the remainder of term of five years.

(4) (a) If there are more than one beneficiary they can agree to nominate a
person to receive the payment and any one of them can request
termination of that agreement at any time without cause being given.

(b) Pension benefits shall be paid in equal portions to children entitled
under this Act.

44 Permanent and total disablement

(1) Subject to this Act, the total balance of an account of a member who is under
pension age shall be payable to him if he is certifi d by a Medical Board as

National Retirement Benefits Scheme Act 2010 Section 45





to
Act No. 41 of 2010 Page 29




suffering from permanent and total disablement for the type of employment
he has undertaken .

Provided that the Organisation may dispense with a certificate of a Medical
Board in any case where, due to the serious physical or mental condition of
the member, as certified by a senior hospital physician it deems this
unnecessary.

(2) The Organisation may pay the pension in a lump-sum of up to one-third of the
total balance and the remainder in instalments.

(3) The Organisation shall establish Medical Boards for the purpose of
establishing entitlement under the Act and shall defray all expenses as part of
the Scheme’s administrative expenditure.

45 Death benefit

(1) The prescribed beneficiary may claim the total b ance in the member’s
account and life insurance benefit, if any on the death of a member before he
has been awarded a pension.

(2) Where there are two or more children eligible for benefits they shall be paid in
equal portions.

(3) The Organisation may pay the balance in the form f a lump-sum of up to
one-third of the total balance and the remainder in instalments, if requested by
the beneficiary.

(4) The Organisation shall pay the total entitlement into the estate of the deceased
in the absence of a prescribed beneficiary.

PART VII - DETERMINATION OF CLAIMS AND QUESTION

46 Determination of claims

(1) The Board shall determine, within one month of receiving, questions on
liability to contribute, right to benefit and any other question arising under the
Act, and such decision shall be in writing with reasons.

(2) The Board may, on new facts coming to its notice, or if it is satisfied that the
decision was given in ignorance of, or was based on a mistake as to some
material fact, review and revise its decision.

47 Right of appeal

(1) There shall be a right of appeal from the decision of the Board under section
46.

Section 48 National Retirement Benefits Scheme Act 2010





Page 30 Act No. 41 of 2010
to



(2) (a) Appeals against a decision of the Board shall be filed with the office of
the Organisation within 21 days of the days of such decision.

(b) The notice of such appeal shall be in writing and shall contain
statement of the grounds of appeal.

48 Establishment of Appeal Board

(1) There shall be an Appeal Board established under this Act.

(2) The Minister shall appoint members of the Appeal Board which shall consist
of a Chairman and two assessors to hear appeals under this Act.

(3) The decisions made by the Appeal Board shall be final.

49 Membership of Appeal Board.

(1) The Minister shall appoint the two assessors from nominations received from
organisations representing employers and employees.

(2) The Chairman shall be a person who has for 10 years been a law practitioner
in the Kingdom.

50 Powers of the Appeal Board

(1) The Appeal Board shall have the powers to issue mmons, call for the
production of documents, examine witnesses, and administer oaths and record
evidence.

(2) An order of the Appeal Board shall be enforceabl as if it were a judgment of
the Supreme Court.

PART VIII - OFFENCES AND PENALTIES

51 Offences and Penalties

(1) Any person who fails to-

(a) pay to the Fund in any month any amount required under section 20(1);

(b) submit returns under section 25(2);

(c) produce at the time specified, any document requi d to be produced by
notice in writing under section 26(3);

(d) pay any contribution or other amount which he is require to pay under
section 28;

(e) pay the Fund, within such period as may be prescribed, any surcharge
which he is liable to pay under the provisions of section 29; or

National Retirement Benefits Scheme Act 2010 Section 52





to
Act No. 41 of 2010 Page 31




(f) transfer to the Fund within the prescribed time any sum which he is
required to transfer to it under section 35;

commits an offence and shall be liable upon conviction to a fine not
exceeding $2,500.

(2) Notwithstanding the provisions of any other Act, proceedings may be taken
for any offence under this Act within three years of the date of commission of
such offences

52 Offences relating to officers

(1) Any person who-

(a) obstructs any officer or servant of the Organistion in the exercise of
his duties; or

(b) procures any member, officer, servant or agent of the Organisation to
communicate any such matter which is not permitted by the Board;

commits an offence and shall be liable upon conviction to a fine not
exceeding $10,000 or to imprisonment for a term not exceeding three years or
both.

(2) Any Board member, officer, servant or agent of the Organisation who
communicates to any person any information which is not permitted by the
Board commits an offence and shall be liable upon cviction to a fine not
exceeding $10,000 or to imprisonment of a term not exceeding three years or
both.

(3) Any Board member, officer, servant or agent of he Organisation unlawfully
using inside information for his own benefit or the b nefit or another person
commits an offence and shall be liable upon conviction to a fine not
exceeding $20,000 or to imprisonment for a term not exceeding 5 years or
both.

53 Offences relating to contributions

Any person who-

(a) makes any deductions or calculations of contributions at a time other than the
time at which such contributions are payable;

(b) deducts from the wages of the employee any sum greater than that permitted
under this Act; or

(c) having made any deductions, fails to pay to the Fund in the months in which
they are due;

commits an offence and shall be liable upon conviction o a fine not exceeding
$2,500.

Section 54 National Retirement Benefits Scheme Act 2010





Page 32 Act No. 41 of 2010
to



54 Liability of officers of Corporation

(1) Where an offence under this Act has been committed by a body corporate, any
person who at the time of the commission of the offence was a director,
manager or secretary shall be personally liable for that offence.

(2) It shall be a defence for any person named in subsection (1) to prove that the
offence was committed without his consent and that e exercised due
diligence to prevent the commission of the offence.

55 Civil Proceedings

(1) For the purposes of this section the word “contribu ion” shall be deemed to
include any surcharge under the provisions of section 29.

(2) All contributions payable under the provisions of this Act may be recoverable
by the Organisation as a debt due.

(3) Notwithstanding any other Act, proceedings for the recovery of debts relating
to contributions may be brought within five years from the date the
contribution becomes due.

(4) Proceedings for the recovery of debts may be instituted by the Organisation or
its nominee authorised in writing.

56 Loss of benefit through default or employer

(1) Any employer who fails to pay any contribution when due and by reason
thereof any person or persons fails to qualify for benefit under this Act or
become entitled to benefit at a lower rate, the Organisation may pay benefit at
the rate to which he or they would have been entitld if the failure to pay
contributions had not occurred, and the Organisation shall be entitled to
recover from the employer the contributions due andthe expenditures on
benefits otherwise not due save for the provisions of this sub-section.

(2) Any sum which an employer is liable to pay under subsection (1) may be
recoverable by the Organisation as a debt due.

PART IX - MISCELLANEOUS

57 Power of Minister on exemptions

(1) Any person listed in the First Schedule is exempted from the provisions of
this Act.

(2) The Minister may, on the recommendations of the Board exempt any other
person or category of person from the provisions of this Act.

National Retirement Benefits Scheme Act 2010 Section 58





to
Act No. 41 of 2010 Page 33




58 Power to Minister to make Regulations

The Minister may, with the consent of Cabinet, make regulations for giving effect to
any purposes of this Act including, but not limited to the following-

(a) the registration of employers and employees;

(b) the payment and collection of contributions;

(c) the submission and adjudication of claims to benefits;

(d) the exemption of existing retirement benefit schemes as complying schemes
under this Act;

(e) the investment of the Fund including the appointment of fund management
institutions;

(f) the manner and time of payment of contributions and the supply of
information to the Organisation; and

(g) the proper and effective administration of this Act.

59 Exemption from tax

(1) There shall be no tax liability in respect of benefits paid under this Scheme.

(2) The contributions paid by employers shall be deductible as an expense for the
assessment of taxes.

60 Overpayment of benefits

(1) Any person who has received any benefit or payment or payment under this
Act to which he is not entitled, shall be liable to refund the overpayment to the
Organisation.

(2) An overpayment is a debt due to the Organisation.

61 Limitations on contributions and benefits

Notwithstanding any other law -

(a) no sum deducted from the wages of a member of the Scheme under section
19;

(b) no amount payable by the employer as his contribution;

(c) no amount standing to the credit of a member of the Fund; and

(d) no pension or other benefit under the Act;

shall be assignable, transferable, liable to be attached, sequestered, for, or in respect
of, any debt or claim whatsoever.

Section 62 National Retirement Benefits Scheme Act 2010





Page 34 Act No. 41 of 2010
to



62 Insured person working abroad

(1) An employer who assigns a member to undertake duti s under his contract of
service outside Tonga for a period not exceeding twelve months shall-

(a) notify the Organisation of the date the employee leaves and when he
returns; and

(b) be liable to contribute to the Scheme as if the employee is in Tonga.

(2) Employees working outside Tonga on assignment shall be included in the
contribution schedule with information on the remuneration in Tongan
currency.

63 Beneficiary abroad

(1) Subject to this Act, a person shall not be disqualified from receiving any
benefit for any period during which that person absent from Tonga.

(2) Benefit or person abroad may be payable in Tonga i Tongan currency to a
person appointed to act for and on behalf of the beneficiary, or to the bank
account of the beneficiary in Tonga as may be approved by the Organisation.

64 Confirmation of Entitlement

The Organisation shall contact every pensioner at least once every year to confirm
continued eligibility to receive pension payments.






Passed by the Legislative Assembly this 21st day of September 2010.










National Retirement Benefits Scheme Act 2010 FIRST SCHEDULE





to
Act No. 41 of 2010 Page 35




FIRST SCHEDULE

(Section 57)

EXEMPTIONS

1 Any domestic employee or out-worker.

2 Any person who is a daily paid labourer in any Government employment.

3 Any person who is a member of a complying scheme.

4 Any person who is detained in a prison or mental hospital.

5 Any person who is not a Tongan subject and has diplomatic privileges and
immunities extended to him by the Kingdom of Tonga.

6 Any person who is not a Tongan subject employed in Tonga who provides
proof satisfactory to the Board that either he or she i -

(a) contributing to a national superannuation scheme in another country
established under legislation, which provides equivalent or better
benefits than those prescribed under this Act; or

(b) employed under a contract or contracts the duration of which when
combined does not exceed 5 years, and calculation of the total period
shall exclude any gaps between such contracts of not more than 24
months.

SECOND SCHEDULE National Retirement Benefits Scheme Act 2010





Page 36 Act No. 41 of 2010
to





SECOND SCHEDULE

(Section 20)

RATES OF CONTRIBUTION

Contribution rates payable by employers and employees shall be the following
percentages of each complete pa’anga of insurable ernings:



Employers Employees
1. For the first five years of Implementation of
this Act

5 per cent 5 per cent

2. After the first five years of this Act 7.5 per cent
5 per cent

Related Laws