PARLIAMENTARY PENSIONS ACT.

"AGM" means the Annual General Meeting of the members of the scheme including a former member receiving a pension under the scheme or with deferred benefits in the scheme;

"beneficiary or nominee" means a person designated by a member to benefit under the scheme;

"Board" means the Board of Trustees established under section 18;

"custodian" means an institution appointed by the Board for the purposes of holding safe custody of the funds, securities, financial instruments and documents of title of the scheme in accordance with such terms and conditions of service as may be specified in the instrument of appointment;

"defined benefits scheme" means a retirement benefits scheme in which a sponsor undertakes to provide benefits expressed in the form of annuity or lump sum calculation based on work history and guaranteed return on contribution account regardless of the investment performance of the fund associated with the scheme and accordingly constitutes a contingent liability for the sponsor;

"dependant" means a son or daughter under the age of 18 years, or a son or daughter above the age of 18 years or any other person who is wholly or substantially dependent on the member;

"disability" means a substantial functional limitation of daily life activities caused by physical, mental or sensory impairment and environment barriers resulting in limited participation;

"Fund" means the Parliamentary Pensions Fund established under section 8;

"fund manager" means a person appointed by the trustees to advice on the investment of the assets of the scheme in accordance with such terms and conditions of service as may be specified in the instrument of appointment;

"hybrid cash balance scheme" means a defined benefits scheme which includes elements of money purchase pension design scheme;

"member" means a Member of Parliament and a member of staff of the Parliamentary Commission on permanent and pensionable terms contributing to the Fund;

"money purchase pension design scheme" means a scheme that provides benefits based upon the amount of money that is in a member account when benefits are due to be paid;

"Parliamentary Commission" means the Parliamentary Commission established by and under the Administration of Parliament Act, Cap. 257;

"pensionable emolument" means basic salary, excluding any allowance or gratuity;

"pensionable service" means service as a Member beginning from the 2nd"> day of July, 2001;

"pensioner" means a person receiving pension under this Act;

"reserve account" means a reserve account established under section 20B;

"retirement" means retirement as, or ceasing to be, a Member after a period of five continuous years of service as a Member and on attainment of 45 years of age;

"Scheme" means the pension scheme established under section 4;

"scheme credit" means the total contributions by and in respect of a member and interest accruing on it;

"spouse" means a husband or wife by a lawful marriage.

3. Application.

This Act shall apply to any person who, on the date of commencement of this Act, was a Member of Parliament, whether as an elected Member or an ex officio Member, or is a member of staff of Parliament.

PART II
ESTABLISHMENT OF PENSIONS SCHEME AND PENSIONS FUND.

4. Establishment of the Scheme.

(1) There is established a pension scheme, to be known as "the Parliamentary Pension Scheme".

(2) The Scheme shall be a hybrid cash balance scheme under which Members and the Government shall make contributions to the Fund in accordance with section 6.

5. Membership of the Scheme.

(1) Membership of the Scheme shall consist of Members of Parliament, whether elected or ex officio, and members of staff, on permanent and pensionable terms, of the Parliamentary Commission except that any member who is also a Vice President or a Prime Minister or becomes Speaker or Deputy Speaker shall not be a member of the Scheme.

(2) A member who is subsequently appointed as Vice President or Prime Minister or elected Speaker or Deputy Speaker shall withdraw from the Scheme and his or her benefits may be deferred under section 12A.

(3) All Members of the 7th"> Parliament and staff of the Parliamentary Commission shall, on the date of commencement of this Act, be deemed to have joined the Scheme.

(4) For the purposes of this Act, a person who ceases to be a member in consequence of the dissolution of Parliament, or in consequence of a court order relating to any election petition, shall be deemed to continue to be a member until such time as he or she fails to be re-elected to Parliament.

(5) The benefits of the Speaker and Deputy Speaker shall be provided for under Part IVA of this Act.

6. Contributions to the Scheme.

(1) There shall be a deduction from each monthly payment of the pensionable emolument made to a member, a sum calculated at the rate of 15 percent of the pensionable emolument.

(2) Government contribution to the Scheme shall be calculated at the rate of 30 percent of the monthly pensionable emolument paid of each member, or at a rate determined to guarantee the solvency of the Scheme as provided for under section 21.

(3) Where for any reason the appropriate deduction is not made from a member's pensionable emolument within any month, there shall be deducted from any other monies payable to a member, an amount equal to the relevant deduction as if such monies were pensionable emoluments.

(4) Except as otherwise expressly provided for in this Act, no deduction made under this section or any part of that deduction shall be refunded to a Member.

(5) The Board shall maintain a member account for each member to which all contributions made by and in respect of each member under this Act shall be credited, and from which there shall be paid all individual benefits in respect of each Member.

7. Deductions not assignable, etc.

(1) Subject to the provisions of this Act, no deductions made under this Act shall be assignable or transferable or liable to be attached, sequestered or levied upon for, or in respect of, any debt or claim.

(2) Subsection (1) shall not apply to an order of court for the payment of periodical sums of money towards the maintenance of the spouse or former spouse or child, of the Member to whom the pension, gratuity or other benefit has been granted.

7A. Pension not subject to attachment on bankruptcy.

Where a person in receipt of a pension under this Act is adjudicated insolvent by a competent court, the person shall continue to receive the pension and the pension shall not be subject to attachment under the insolvency laws.

7B. Restriction on use of Scheme Funds.

(1) The funds of the Scheme shall not—

(a) be used for speculative investment;

(b) be lent to any person, except through securities sold on the open market; or

(c) be invested with a bank, non-banking financial institution, insurance company, building society or other institution with a view to securing loans or mortgages, at a preferential rate of interest or for other consideration to the trustee, custodian, administrator or fund manager of the retirement benefits scheme.

(2) Notwithstanding section 7 and section 7B(1), a prescribed proportion of the benefits accruing to a member under this scheme may be assigned and used by the member to secure a mortgage or a loan for purchasing a residential house from any institution and on such terms as may be prescribed in the regulations made under this Act.

8. Parliamentary Pensions Fund.

There is established a fund to be known as "the Parliamentary Pensions Fund" for the purposes of the pension scheme referred to in section 4.

9. Objectives of the Fund.

The objectives of the Fund are to—

(a) collect contributions by and in respect of Members;

(b) ensure the grant of reasonable retirement benefits to Members;

(d) maintain the long term solvency and sustainability of the Scheme.

10. Contributions to the Fund.

(1) Contributions deducted from Members' emoluments and Government contribution under section 6, shall be paid into the Fund.

(2) Government contribution to the Fund shall be charged on and payable out of the Consolidated Fund without further appropriation other than this section.

(3) The Government shall, in addition to the contribution made under section 6, contribute the initial liability of the Fund resulting from any pensionable service.

(4) The contributions by and in respect of each member under section 6 shall be paid to the Fund before the 15th"> day of the next following calendar month.

10A. Payments from the Fund.

The following payments shall be made from the Fund—

(a) pension;

(b) refund of contributions; and

PART III
PENSIONABLE SERVICE AND RETIREMENT BENEFITS.

11. Pensionable service.

(1) Except as otherwise provided under this Act, only continuous service as a Member shall be taken into account as pensionable service.

(2) Any question as to whether a Member's service is or has been continuous or not shall be determined by the Parliamentary Commission.

12. Pension for former members.

(1) Pension shall be paid to a member who retires or ceases to be a Member on or after attaining 45 years of age, subject to service as a member for a continuous period of five years or more.

(2) The pension payable to a former member shall be calculated basing on a formula provided in Schedule 1 to this Act.

(3) The Board may by Statutory Instrument in consultation with the Parliamentary Commission amend the Schedule after an actuarial review.

(4) The pension payable to a former member on his or her retirement shall be of such amount as can be purchased by his or her Scheme credit at the day of retirement by monthly payments.

(5) Notwithstanding subsection (4), a member entitled to a pension shall have an option of receiving a commuted lump sum payment of not more than 25 percent of his or her Scheme credit.

12A. Retirement as a consequence of another Government appointment.

The benefits of a member, who retires or ceases to be a member as a consequence of another Government appointment with a retirement Scheme, shall be deferred until the member retires or ceases to hold the new appointment.

13. Refund of contributions.

(1) Subject to section 12A, a member who retires or ceases to be a member whose age is less than 45 years, or who has had less than five years of pensionable service, shall be entitled to a refund of his or her Scheme credit.

(2) For the purposes of subsection (1), the proportion of Government contribution that vests in the Member shall be calculated as follows—

(a) 10 percent of contribution shall vest after service of less than or equal to one year;

(b) 20 percent of contribution shall vest after service of one year but less than two years;

(d) 60 percent of contribution shall vest after service of at least three years but less than four years;

(e) 80 percent of contribution shall vest after service of at least four years but less than five years;

(f) 100 percent of contribution shall vest after service of at least five years.

(3) This section shall not apply to a person who was a Member before 2010.

14. Deferment of payment of benefits.

(1) Notwithstanding the provision of subsection (1) of section 13, a member whose membership ceases before he or she attains the age of 45 years, but whose pensionable service is five years or more, may leave his or her contribution in the Scheme as deferred benefits until he or she attains the age of 45 years.

(2) Subject to section 12(5), a member whose payment is deferred under subsection (1) shall, on attaining the age of 45 years or more, be paid his or her Scheme credit as a pension.

15. Retirement on health grounds.

Where a Member retires or ceases to be a Member by reason of ill health and the Board is satisfied, on the basis of a report of the Medical Board appointed by the Director General of Medical Services, that there is no reasonable possibility of the Member becoming fit to be an active Member again, the Member shall be paid—

(a) where the Member has had five or more years of pensionable service, under section 12 notwithstanding that he or she has not attained the age of 45 years; or

(b) where the Member has less than five years of pensionable service,

a refund of the Member's contributions together with the contribution made by the Government on his or her behalf calculated with interest as may be determined by the Board.

15A. Disability pension.

(1) The board may, in addition to payments made under this Act, grant a disability pension where a member is required to retire as a result of—

(a) sustaining an injury in the course and arising out of performing his or her official duties or due to a travel accident; or

(b) contracting a disease to which he or she is exposed by the nature of his or her duties.

(2) For the purpose of subsection (1), injury or disease means injury or disease which is not due to, aggravated or contributed by negligence or misconduct on the part of the member.

16. Death of a Member.

Where a member dies while in pensionable service, his or her spouse or dependant, and where applicable a person nominated by the member before the member's death shall be paid a refund of his or her Scheme credit.

16A. Death of a person receiving pension.

Where a person dies when he or she is receiving a pension under this Act, his or her spouse, dependant or where applicable a person nominated by the member before the member's death shall be entitled to receive the deceased member's pension.

17. Suspension of pension on re-election.

(1) Where a person receiving a pension under this Act is elected as a Member of Parliament or appointed as a member of staff of the Parliamentary Commission on permanent and pensionable terms contributing to the Fund, the payment of the pension or any part of it shall be suspended during the period he or she is a serving member.

(2) For avoidance of doubt, no pension under this Act shall be paid to a serving Member of Parliament.

PART IV
MANAGEMENT OF THE SCHEME AND FUND.

18. Establishment of Board of Trustees.

(1) There is established a Parliamentary Pension Scheme Board of Trustees consisting of—

(a) the Minister responsible for finance or his or her representative;

(b) two backbench Members of Parliament elected from different political parties or organisations one of whom shall be a woman;

(d) one member of staff elected by the members of staff of the Parliamentary Commission; and

(e) two pensioners elected by the pensioners, one of whom is a former staff of the Parliamentary Commission and the other a former Member of Parliament.

(2) The Chairperson of the Board shall be elected by the Board of Trustees from the two backbench members of Parliament from different political parties or organisations and pensioners.

(3) In the absence of the Chairperson, the members present shall elect from amongst themselves, a Chairperson for the purposes of the sitting.

(4) The Clerk to Parliament shall be the Secretary to the Board and chief executive of the Fund.

(5) The Board shall be responsible for the management and control of the Scheme.

(6) The Board shall appoint an actuary, custodian, fund manager, auditor and any other professional of the Scheme as the Board may deem necessary for the proper administration of the Fund.

(7) A member of the Board of Trustees shall serve for a period of five years but may be eligible to serve one other term.

(8) A person shall cease to be a Trustee if he or she—

(a) is sentenced to imprisonment by a court of competent jurisdiction for a period of six months or more;

(b) becomes insolvent or makes an arrangement or composition with his or her creditors generally;

(d) fails without reasonable cause and without the consent of the other trustees to attend four consecutive meetings of the Board and the Board resolves in a meeting that by reason of such failure he or she shall cease to be a trustee;

(e) removed by a resolution of members in an AGM;

(f) in the case of a trustee appointed by virtue of the office he or she holds, on ceasing to hold that office;

(g) resigns;

(h) is forbidden to act as trustee under any written law; or

(i) dies.

19. Expenses of management of Fund.

(1) The expenses for management and administration of the Scheme and the Fund shall be borne by the Fund.

(2) The Parliamentary Commission shall be responsible for the set up costs of managing the Scheme and the Fund.

20. Meetings of the Board.

(1) The Board shall meet—

(a) at least once in four months at such time and place as the Chairperson may determine; or

(b) upon a request in writing to the Chairperson by at least three members of the Board.

(2) The quorum of the Board shall be five members of the Board.

(3) Subject to the provisions of this Act, the Board may regulate its own procedure at its meetings.

(4) The decisions of the Board shall be by simple majority.

20A. Interest on member accounts.

(1) Interest on the Scheme credit of each member shall be calculated at the rate specified in Schedule 2.

(2) Subject to section 24,

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