TUVALU

PROVIDENT FUND ACT 1984

PROVIDENT FUND (CREDITING ACCOUNTS) (AMENDMENT) REGULATIONS 2008

LN 11 of 2009

MADE UNDER SECTION 17(3) OF THE PROVIDENT FUND ACT 1984

Commencement [11 September 2009] 

1 Short title, commencement and interpretations 

(1) These Regulations may be cited as Provident Fund (Crediting Accounts) (Amendment) Regulations 2008. 

(2) These Regulations shall come into operation on a date to be appointed by the Minister by notice. 

(3) In these Regulations, "the Regulations" means the Provident Fund (Crediting Accounts) Regulation 1984 including all subsequent amendment. 

2 Crediting Contributions 

Regulation 3(2) of the Regulations is repealed and substituted with the following paragraph: 

"(2) All contributions paid under section 12 shall be credited to a member's account at the date in which they are paid. In case of contribution credited under section 17, the Board shall decide the appropriate date in which such contribution shall be credited to a member's account.".

3 New regulations 3A and 3B

The following are added to the regulations — 

"3A Type of members accounts 

All registered members shall be allocated with the following type of accounts — 

(a) Retirement and General Account; and 

(b) Medical and Educational Saving Account to be known as a MEDU saving account. 

3B Rates of crediting contributions to member's accounts 

(1) Subject to the foregoing regulations, all contributions received by the Fund, being contributions paid by an employer in accordance with section 12(1) of the Act and in pursuance of the requirements of the Provident Fund (Contributions) Regulations or being contributions credited in accordance with section 17, shall be credited to a member's account at the following rates — 

(a) 73.91% of the amount received shall be credited to the member's Retirement and General account; and 

(b) 26.09% of the amount received shall be credited to the member's Medical and Educational Saving account. 

(2) Subject to the foregoing regulations, all contributions received by the Fund, being contributions paid by an employer / Agent in accordance with section 12(3) of the Act and in pursuance of the requirements of the Provident Fund (Contributions) Regulations or being contributions credited in accordance with section 17, shall be credited to a member's account at the following rates — 

(a) 73.91% of the amount received shall be credited to the member's Retirement and General account; and 

(b) 26.09% of the amount received shall be credited to the member's Medical and Educational Saving account. 

(3) Subject to the foregoing regulations, all contributions received by the Fund, being additional or voluntary contributions made in accordance with the requirements of the Provident Fund (Contributions) Regulations shall be credited to member's account at the following rates — 

(a) 73.91% of the amount received shall be credited to the member's Retirement and General account; and 

(b) 26.09% of the amount received shall be credited to the member's Medical and Educational Saving account.".

4 Crediting interest to member's account 

Regulation 4 of the Regulations is amended — 

(a) by deleting paragraphs (a) – (d) of sub-regulation (1) and substitute with new paragraphs — 

"(a) the opening balance of a member standing in his account for that financial year; 

(b) the rate of interest declared under section 10 shall be applied to that amount under paragraph (a).". 

(b) by deleting the words "paragraphs (1) (c) and (d)" from sub-regulation (2) and substitute with "paragraph (1) (b)".

5 Calculation of final amount 

Regulation 5 of the Regulations is amended — 

(a) by deleting paragraphs (a) and (b) of sub-regulation (2) and substitute with new paragraphs — 

"(a) applying the rate of interest declared for the financial year immediately preceding the date of entitlement to the opening balance, on a pro rata basis, being the ration of the complete days between the 1st day of January and the date of entitlement; 

(b) adding the interest arrived at under paragraph (a) to any contributions paid under section 12 or credited under section 17 or otherwise added or credited to the member's account for the period to the date of entitlement.".

6 Statements of Account 

Regulation 6 of the Regulations is amended by deleting sub-regulation (1) – (3) and substitute as follows — 

"(1) As soon as possible at the end of each financial year after the interest calculated under regulation 4 has been added to the member's credit balance at the close of the financial year, the Manager shall announce over Radio Tuvalu inviting members to apply for a statement of account. 

(2) All applications for a statement of account shall be communicated to the Fund within three months after the announcement. Those members in the outer islands may communicate their applications through the Fund's Agents in the respective outer islands. 

(3) The Fund shall issue statements of accounts as soon as possible without charging any fees to those who make their applications within the three months period required under sub-regulation (2) above. Any member's statements of account issued by the Fund upon an application made outside that three months period may be issued only after settlement of a fee prescribed by the Manager.".