ARRANGEMENT OF SECTIONS
1. Short title.
THE LOCAL AUTHORITIES PROVIDENT FUND
4. Establishment of the Fund.
5. Functions of the Fund.
6. Membership of the Fund.
7. Management and administration of the Fund.
8. Vesting of existing Fund.
9. Appointment of officers.
10. Terms of employment.
THE BOARD OF TRUSTEES OF THE FUND
11. Establishment of the Board of Trustees.
12. Composition of the Board.
13. Functions of the Board.
14. Duties of the Board.
15. Powers of the Board.
16. Remuneration, allowances and benefits of members.
17. Power to delegate.
18. Minister may give directions to the Board.
DEPOSITORS AND CONTRIBUTING EMPLOYERS
20. Contributing employers.
21. Statutory contribution.
22. Special contribution.
23. Supplementary contribution.
DEPOSITS AND WITHDRAWALS
24. Depositors contribution and bonus pay.
25. Rate of interest.
26. Opening of accounts.
28. Amount outstanding.
29. Fund to vest in Board.
30. Financial resources of the Board.
31. Investment of moneys in the Fund.
32. Utilisation of Fund for acquisition of assets.
33. Board's liability to depositors guaranteed.
34. Refund of excess contributions.
35. Special accounts.
36. Interest on depositors' accounts.
37. Annual and supplementary budget.
38. Power to borrow.
39. Accounts, audit and records.
40. Fund account.
41. Accounts of the Fund.
OFFENCES, LEGAL PROCEEDINGS AND PENALTIES
43. Contribution to be debt to Board.
44. Penalty for non-payment of statutory contribution.
45. Joinder in cases of non-payment of contributions.
46. Summary recovery.
47. Legal proceedings.
48. Suits against the Board.
49. Certificates as evidence.
50. Priority for payment of contributions.
51. Protection of contributions.
52. Protection against attachment.
53. Liability for acts of bodies of persons.
54. Exemption from tax.
55. Persons deemed to be in the employment of the first-mentioned person.
57. Liability of members.
58. Contributions inalienable.
60. [Amendment of Act No. 10 of 1982.]
61. Savings and transitional provisions.
THE LOCAL AUTHORITIES PROVIDENT FUND ACT
An Act to establish the Local Authorities Provident Fund and to provide for its constitution, administration and other matters related to it.
[23rd June, 2000]
Act No. 6 of 2000
PRELIMINARY PROVISIONS (ss 1-3)
This Act may be cited as the Local Authorities Provident Fund Act.
[Omitted: Commencement date.]
In this Act unless the context requires otherwise–
"Board" means the Board of Trustees of the Fund, established by section 11;
"bonus" means a sum credited to an individual depositor's account which is not part of the depositor's contribution or accrued by way of interest;
"contract of service" has the meaning ascribed to that expression in the Employment Act *;
"contributing employer" means a local government authority, the local government loans board, the Fund, an institution under ownership of a local government authority, or any other institution which may elect to join the Fund by contributing to it in accordance with the provisions of this Act;
"contribution credits" means a number of contributions made in respect of a depositor;
"contribution period" means, where wages are paid to an employee–
(a) at intervals of more than a fortnight, the month during which the wages are paid; or
(b) at intervals of more than a week but not more than a fortnight, the fortnight ending with the last day of the week in which the wages are paid; or
(c) at intervals of a week or less (except for a daily paid employee), the week in which the wages are paid; or
(d) daily, the day on which wages are paid:
Provided that, where wages are paid in advance to an employee the contribution period shall be deemed to be the appropriate period to which the wages relate and, if the wages relate to more than one such period, each such period shall be deemed to be a contribution period;
"depositor" means a person in receipt of a salary or wages from the funds of a local government authority, the Local Government Loans Board, the Local Authorities Provident Fund, an institution owned by a local government authority and who is required or permitted to become a depositor in the Fund and any other institution which elects to join the Fund by contributing to the Fund;
"depositor's account" means individual depositors' account into which deposits, bonus and accrued interests thereon are credited;
"Director-General" means the Director-General of the Fund appointed under section 7;
"employer" means the person with whom the employees entered into a contract of service, or apprenticeship, and who is responsible for the payment of the salary or wages of the employees;
"existing fund" means the Local Authorities Provident Fund established under the Local Government Service Act *;
"Fund" means the Local Authorities Provident Fund established under section 4;
"local government authority" means a district authority or an urban authority established under the relevant law;
"Minister" means the Minister responsible for local government authorities;
"reserve account" means an account established under section 35;
"special contribution" means contribution to the fund made by the contributing employer for a temporary employee;
"statutory contribution" means the statutory contribution payable under section 21;
"supplementary contribution" means supplementary contribution payable under section 23 of this Act;
"wages" means remuneration in money paid to an employee under his contract of service or apprenticeship, as the case may be, and whether agreed to be paid at fixed or determinable intervals of time–
(a) in respect of normal periods of work to be performed by the employee; or
(b) where payment is calculated in relation to set tasks or journeys completed by the employee; or
(c) where payment is calculated in relation to the volume of work done, in respect of the volume completed by the employee,
and includes any allowance paid by the employer to the employee either directly or by implication in respect of living and any payment of wages in lieu of notice of termination of employment;
"widow" or "widower" includes a spouse and any person whom the deceased depositor had been living with as a wife or husband for at least two years.
THE LOCAL AUTHORITIES PROVIDENT FUND (ss 4-10)
There is hereby established a fund which shall be known as the Local Authorities Provident Fund.
(1) The functions of the Fund shall be–
(a) to provide a scheme for the payment of retirement and other benefits to depositors;
(b) to formulate, offer and administer retirement and other benefit packages which are attractive to persons and institutions who may become depositors or contributing employer;
(c) to work towards the gradual and continuous improvement of retirement and other benefits paid to, local authorities employees.
(2) All contributions, deposits and other monies required or permitted to be paid by or under this Act shall be paid into the Fund.
(3) There may be charged on and paid out of the Fund the benefits and other payments, including payments in respect of the expenses of the Board, as may from time to time be authorised by this Act.
(4) The Fund shall, subject to this Act, be under the control and supervision of the Board.
Membership of the Fund shall be open to contributing employers and depositors in accordance with this Act.
(1) The management and administration of the Fund shall vest in the Board.
(2) Subject to this Act, the Board shall be responsible for–
(a) the payment of benefits and claims out of the Fund;
(b) the investment of surplus funds;
(c) accounting for all monies collected, paid or invested under this Act.
(3) There shall be a Director-General of the Fund who shall be appointed by the President on such terms and conditions as shall be determined by the President in the letter of appointment.
(4) The Director-General shall be the chief executive officer of the Fund and shall, subject to any directions of a general or specific character given by the Board, be responsible for–
(a) carrying out and overseeing the carrying out of the day to day management of the business operations and affairs of the Fund;
(b) the performance of such other functions and duties as may from time to time be conferred upon him by or through the Board.
The existing Fund shall, with effect from the commencement of this Act, by virtue of this section and without any further assurance, be transferred to the Fund and be vested in the Board which shall, subject to this Act, have the sole management and control of it.
(1) The Board may establish such offices in the Fund and appoint persons to hold those offices as it may deem necessary for the efficient and effective discharge of the functions and business of the Fund.
(2) In the discharge of functions pursuant to subsection (1), the Board may establish branch offices of such designation, in such places and for such areas of the country as it may deem necessary for the efficient and effective discharge of the functions and business of the Fund.
The Fund may upon such terms and conditions as it may deem fit for proper and efficient conduct of the business and activities of the Fund–
(a) establish or cause to be established an efficient scheme of service for the staff of the Fund;
(b) appoint at such salaries and upon such terms and conditions as may deem fit, such other officers and employees of the Fund as it deems necessary or advisable for the effective discharge of the functions of the Fund;
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