ARRANGEMENT OF SECTIONS
1. Short title.
3. Pension to be granted in accordance with the Act and Regulations.
THE PARASTATAL PENSIONS SCHEME
4. Establishment of the Scheme.
5. Membership of the Scheme.
THE PARASTATAL PENSIONS FUND
6. Establishment of the Fund.
7. Management of the Fund.
8. Compulsory contributions.
9. Additional contributions by way of penalty where payment is delayed.
10. Contributions and penalties recoverable as debts.
11. Records and returns by employers.
12. Fund to be held by the Board as trustees.
13. Investment of moneys available in the Fund.
14. Accounts and audit.
15. Report by the Board.
16. Evaluation of the Fund.
BOARD OF TRUSTEES OF THE PARASTATAL PENSIONS FUND
17. Establishment of the Board.
18. Functions of the Board.
19. Duties of the Board.
20. Remuneration and allowances of members of the Board.
21. Powers of the Board to delegate.
22. Duties of the Fund in relation to the Board.
23. Minister may give directions to the Board.
24. Age of retirement.
GRANTING OF PENSIONS AND GRATUITIES
25. Pensions not as of right.
26. Circumstances in which pension may be granted.
27. Service not qualifying for pension.
28. Rate of pension and gratuity.
29. Maximum pension.
30. Pension in the case of removal from service in the public interest.
31. Transfer to public service.
32. Effect of conviction or detention on pension.
33. Restriction on assignment, attachment of pension.
34. Gratuity where length of service does not qualify for pension.
35. Gratuity on marriage of female member.
37. Liability of pensioner to be recalled for service.
39. Death gratuity.
40. Survivors' benefits for dependants.
41. Pension or Survivors' benefits payable monthly in arrear.
42. Pension to cease on death.
43. Board may arrange with Public Trustee or other public officer for distribution of pension or survivors' benefits.
44. Withdrawal benefits.
LEGAL PROCEEDINGS, OFFENCES AND PENALTIES (ss 45-50)
45. Criminal proceedings.
46. Joinder in cases of non-payment of contributions.
47. Legal proceedings.
48. Priority for payment of contribution.
49. Protection of contribution.
51. Provisions regulating employees' terminal benefits schemes in operation prior to the commencement of this Act.
52. Exemption from National Social Security Fund.
53. Exemption from stamp duty.
54. Exemption from tax.
55. Liability of members.
58. Fund guarantee.
THE PARASTATAL ORGANISATIONS PENSIONS SCHEME ACT
An Act to establish a Parastatal Pension Scheme and a Board of Trustees to administer the Scheme and for related matters.
[1st July, 1978]
[G.N. No. 109 of 1978]
14 of 1978
4 of 1989
7 of 1991
3 of 1992
9 of 2000
25 of 2001
PRELIMINARY PROVISIONS (ss 1-3)
This Act may be cited as the Parastatal Organisations Pensions Scheme Act.
(1) In this Act, unless the context otherwise requires–
"Board" means the Board of Trustees of the Parastatal Pensions Fund established by section 17;
"contract terms" in relation to employment means the terms whereby a person is employed for a period of service with an eligibility for payment of a sum of money upon satisfactory completion of such period of service;
"employee" means any person employed by a parastatal organization or any self employed person;
"employees' terminal benefits scheme" shall have the meaning assigned to that expression in the Employees' Terminal Benefits Scheme (Registration and Regulation) Act *, but shall not include–
(a) the National Social Security Fund established by the National Social Security Fund Act *.
(b) the scheme established by this Act; and
(c) any scheme for payment of terminal benefits upon determination of employment on contract terms;
"employer" in relation to any employee means the parastatal organisation employing the employee;
"Fund" means the Parastatal Pensions Fund established by section 6;
"member" means an employee who is a member of the Parastatal Pensions Scheme established by section 4;
"Minister" means the Minister responsible for Finance;
"parastatal organisation" means–
(a) any body corporate established by or under any written law including–
(i) the East African Community;
(ii) any corporation within the East African Community;
(iii) any company registered under the Companies Act * upon registration and becoming a member;
(b) any company registered under the Companies Act of which the Government or any parastatal organisation has shares;
(c) any body of persons, whether corporate or incorporate, upon becoming a member;
(d) any person in the informal sector upon becoming a member; and
"pensionable emoluments" means the salary used in deduction of contributions which shall be taken into account in computing pensions, gratuities or other benefits under this Act.
"pensionable office" means an office in a parastatal organisation which office is approved by the management responsible for that parastatal organisation to be pensionable;
"pensionable service" means–
(a) any period of continuous service rendered by a member since his becoming a member of the scheme and includes periods of absence from duty on leave with not less than half salary; and
(b) any period of continuous service rendered by a member immediately prior to his becoming a member of the scheme during which he was employed by a parastatal organisation on other than contract terms or on other than temporary terms daily-paid or casual basis and during which he was governed by any employees' terminal benefits scheme under which the terminal benefit on retirement took the form of payment of a pension, and includes any periods of absence from duty on leave with not less than half salary;
"qualifying service" in relation to any member means the aggregate of–
(a) his pensionable service;
(b) his period of continuous service immediately prior to his becoming a member of the scheme during which he was employed by a parastatal organisation on other than contract terms or other than temporary, terms daily-paid or casual basis, and during which he was not governed by an employees' terminal benefits scheme; and
(c) in the case of any employee who, having served in any public service, is transferred to the service of a parastatal organisation, his public service on terms other than contract terms or on other than temporary, daily-paid or casual basis;
"salary" means the basic salary of the member excluding bonus, commission, cost of living allowance, incentive allowance, over-time payment, cost of living allowance, incentive allowance, overtime payment, Directors' fees or any other additional emoluments;
"scheme" means the Parastatal Pensions Scheme established by section 4;
"service" means service with or under the Government of the United Republic and includes any service which the Minister may, by notice in the Gazette, declare to be public service for the purposes of this Act;
"service" means service with a Parastatal Organisation or with two or more Parastatal Organisations;
"survivor" means any person who on the death of a member may be entitled to a survivors' benefit under this Act;
"trustee" means a member of the Board and includes the Chairman of the Board;
"wife" means lawfully married wife and the expression "husband" shall be construed accordingly.
(2) Where it appears to the Board that there is no satisfactory proof of the correct age of an employee or of any child, then the Board may, upon such evidence as it may think fit, presume the age of the employee or of such child, and such presumed age shall be taken to be the correct age of the employee or of such child for purposes of this Act.
For the avoidance of doubt, it is hereby declared that where an employee has been confirmed in a pensionable office, then, unless the terms of such appointment otherwise require, such last-mentioned office is, for the purposes of this Act, an office in which he has been confirmed.
(1) Pensions, gratuities and other benefits may be granted by the Board in accordance with the provisions of this Act and of the regulations made under the Act.
(2) Any pension or gratuity granted under this Act shall be computed in accordance with the provisions in force at the actual date of the member's retirement from or of his death in the service.
THE PARASTATAL PENSIONS SCHEME (ss 4-5)
There is hereby established a scheme to be called the Parastatal Pensions Scheme.
(1) All employees who are confirmed in a pensionable office in the service shall become members of the Scheme with effect from the date of commencement of the Scheme or from the date of employment whichever date last occurs:
(a) no employee who has attained the age of forty-five years as at the service shall become members of the Scheme with effect from the date of commencement of the Scheme or from the date of employment whichever date last occurs;
(b) where, at the commencement of the Scheme an employee has attained the age of forty years, he shall not be eligible to become a member of the Scheme unless, at such date, he has to his credit such length of qualifying service as, when aggregated with the period for which he would serve as an employee were he to continue as such an employee until his retirement upon attaining the age of fifty years, would be not less than ten years;
(c) any person registered as a member under this Act shall not cease to be a member by reason that his employer has been privatized, sold, leased or liquidated;
(d) any person who ceases to be a member due to any of the circumstances referred to in paragraphs (c), (d), (e) and (f) of subsection (1) of section 26 of the Act, in which he does not attain retirement age, he shall upon re-employment resume membership.
(2) Notwithstanding the provisions of subsection (1) of this section, a person who is non-pensionable in the service may become with effect from the date of employment a member of the scheme.
THE PARASTATAL PENSIONS FUND (ss 6-16)
(1) There is hereby established a Fund to be called the Parastatal Pensions Fund into which shall be paid all contributions and other moneys required or permitted by this Act.
(2) There may be charged on and paid out of the Fund all such sums of money as may be granted by way of pension, gratuity or other benefits, including the expenses of administration, as are authorised by this Act.
(3) An account known as "the Parastatal Pensions Fund Account" shall be kept with such bank or banks as the Board shall approve and all moneys payable into the Fund together with the income from investment of the Fund and other moneys required to be paid into the Fund shall be deposited in the Parastatal Pensions Fund account.
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