CHAPTER 407
LOCAL AUTHORITIES PROVIDENT FUND ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

   REGULATIONS

      The Local Authorities Provident Fund Regulations

REGULATIONS

THE LOCAL AUTHORITIES PROVIDENT FUND REGULATIONS

TABLE OF CONTENTS

   Regulations

Title

PART I
PRELIMINARY PROVISIONS

   1.   Citation.

   2.   Omitted.

   3.   Interpretation.

PART II
REGISTRATION

   4.   Registration by contributing employer.

   5.   Registration of depositors.

   6.   Director-General to provide LAPF registration number.

   7.   Membership card to depositors.

   8.   Duplicate Membership Card.

   9.   Registration of temporary employees.

   10.   Supplementary contribution.

   11.   Change of address, name or designation.

PART III
CONTRIBUTIONS

   12.   Deduction and payment of contributions.

   13.   Mode of payment.

   14.   Record of employees.

   15.   Record of wages and contributions.

   16.   Deposition of employer's records.

   17.   Payment of contributions for employees working outside Mainland Tanzania.

   18.   Payment of contributions for non-citizen.

   19.   Duty of depositors to contributing employer.

   20.   Refund of excess contributions.

   21.   Receipt of refund.

   22.   Request for review.

   23.   Penalty.

PART IV
BENEFIT WITHDRAWALS

   24.   Evidence to support applications for benefits.

   25.   Application for benefits.

   26.   Dismissal for misconduct or resignation.

   27.   Payment of benefits before commencement of these Regulations.

   28.   Notification of retirement.

   29.   Evidence to prove claims and authentication.

   30.   Declaration.

   31.   Medical examination.

   32.   In case of death or any event.

   33.   Payment of benefits.

   34.   Delivery by post.

PART V
INSPECTION, OFFENCES AND PENALTY

   35.   Appointment of Inspector.

   36.   Obstruction, assault or failure to produce document to inspector.

   37.   Misrepresentation and failure to disclose.

   38.   Dishonoured cheque and late remittances.

   39.   Limitation of claims.

   40.   Limitation of suits against the Board.

   41.   Procedure to serve notice to the Board.

   42.   Appeals.

   43.   Compensation in case of misappropriation of funds.

PART VI
GENERAL PROVISIONS

   44.   Signing of forms and documents.

   45.   Incomplete or inaccurate documents.

   46.   Auditing of Accounts.

   47.   Proceedings of the Board.

   48.   Meetings of the Board.

   49.   Confirmation of minutes of the Board.

   50.   Chairman's casting vote on equality of votes.

   51.   Income of the Board.

   52.   Revocation.

SCHEDULE

THE LOCAL AUTHORITIES PROVIDENT FUND REGULATIONS

(Section 59)

[1st September, 2000]

G.N. No. 298 of 2000

PART I
PRELIMINARY PROVISIONS (regs 1-3)

1.   Citation

   These Regulations may be cited as the Local Authorities Provident Fund Regulations.

2.   Commencement

   Omitted.

3.   Interpretation

   In these Regulations, unless the context otherwise requires–

   "Act" means the Local Authorities Provident Fund Act *;

   "attesting witness" means and includes a Judge or Magistrate, an Advocate or generally a Notary Public and Commissioner for Oaths;

   "benefit" means benefit received by a person or depositor under the Act;

   "Board" means the Board of Trustee of the Fund established under section 11 of the Act;

   "bonus" means a sum credited to an individual depositor's account apart from the depositor's contribution or accrued by way of interest from deposits;

   "claim" means a claim made by a person who is a depositor applying to the Fund for a benefit under the Act;

   "contributing employer" means a Local Government Authority, the Local Government Loans Board, the Local Authorities Provident 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 the Act;

   "code number" means a number issued in respect of each contributing employer;

   "contributing period" means intervals where wages are paid to an employee at intervals of more than a fortnight, the month during which the wages are paid or at intervals of more than a week but more than a fortnight, the fortnight with the last days of a week in which the wages are paid or at intervals of a week or less except for daily paid employee the week in which wages are paid or daily, the day on which wages are paid: Provided that, where wages are paid in advance to an employee, the contributing period shall be deemed to be appropriate period to which the wages relate and, if the wages relate to more than one such periods, each such period shall be deemed to be a contributing period;

   "depositor" means a person in receipt of a salary or wages from the fund 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 depositor's account into which deposits, bonus and accrued interests thereon are credited;

   "Director-General" means the Director-General of the Fund appointed under section 7;

   "existing fund" means the Local Authorities Provident Fund established under the Local Government Service Act, 1982 *;

   "Fund" means the Local Authorities Provident Fund established under section 4 of the Act;

   "fund registration number" means an identification number allocated to a depositor by the Fund;

   "Local Government Authority" means a district authority or an urban authority established under the Local Government (District Authorities) Act * and the Local Government (Urban Authorities) Act *;

   "Minister" means the Minister for the time being responsible for Local Government:

   "member" means an employee who is a depositor of the LAPF or a person registered as such;

   "membership card" means the identity card of a depositor with relevant particulars as specified under these Regulations;

   "registration" means registration of contributing employers and depositors of the Fund as prescribed in these Regulations;

   "reserve account" means an Account established under section 35 of the Act;

   "special contribution" means contribution made under section 22 of the Act;

   "supplementary contribution" means contribution payable under section 23 of the Act;

   "statutory contribution" means contribution payable under section 21 of the 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 fixed or determinable at intervals of time.

PART II
REGISTRATION (regs 4-11)

4.   Registration by contributing employer

   (1) Every contributing employer shall within one month from the date of commencement of the Act, complete and deliver to the Fund the Registration Form LAPF. 1 prescribed in the Schedule to these Regulations.

   (2) A contributing employer shall be registered with the Fund by using a code number which shall be provided by the Director-General to the contributing employer who shall be notified after such registration by using Form LAPF. 2.

5.   Registration of depositors

   (1) Every contributing employer shall within thirty days from the date of commencement of the Act or the date when the person concerned becomes a contributing employer or depositor complete and forward to the Director-General in respect of all his employees registerable as depositor of the Fund.

   (2) Every contributing employer under the Act shall cause depositors employed by him to be registered as such with the Fund using Form LAPF. 3.

6.   Director-General to provide LAPF registration number

   (1) Subject to the provisions of Regulations 4 and 5, it shall be the duty of the Director-General to provide LAPF registration number to every contributing employer and depositor covered under the Act.

   (2) An LAPF Registration Card of a depositor as prescribed in the Schedule to these Regulations as Form LAPF. 4 shall bear the following information:

   (a)   picture of depositor;

   (b)   name of depositor;

   (c)   name of contributing employer;

   (d)   signature of depositor;

   (e)   signature of Issuing officer.

7.   Membership Card to depositors

   (1) The Director-General shall forward to every contributing employer a membership card for each depositor to the Fund and every contributing employer to whom such membership card is sent shall within thirty days hand it or cause it to be handed over to the depositor concerned, or if the employee is no longer in his employment the contributing employer shall return it to the Director-General.

   (2) The Director-General shall forward to every contributing employer depositor's membership cards using Form LAPF. 5 as prescribed in the Schedule to these Regulations.

8.   Duplicate membership card

   (1) If the membership card of a depositor is lost or destroyed, the depositor may apply to the Director-General for a duplicate membership card to replace the lost card at a fee as shall be determined by the Board from time to time.

   (2) Upon receipt of an application for a duplicate membership card, the Director-General shall proceed to issue a new card which shall be marked the words "Duplicate" and the date of issuance.

9.   Registration of temporary employees

   The Director-General shall provide a special Form LAPF. 6 for the registration of temporary employees for whom a contributing employer is required to pay special contribution under the Act.

10.   Supplementary contribution

   (1) The Director-General shall provide registration Form LAPF. 7 to be completed by a contributing employer or depositor who intends to make a supplementary contribution.

   (2) Subject to the provisions of subsections (1) and (2) of section 23 of the Act, where a contributing employer or depositor elect to make supplementary contribution to the Fund, the contributing employer or depositor shall not stop to make such supplementary contribution to the Fund except with the permission of the Board.

   (3) If the contributing employer or depositor fails to contribute such supplementary contribution, such failure shall be taken to be a default and the sums due to such supplementary contribution which remains to be deposited to the Fund shall be a debt due and shall be recovered in like manner as provided for in the Act.

11.   Change of address, name or designation

   (1) Where there is a change in the contributing employer's address, business name, or designation, such contributing employer shall within thirty days from the date of such change, notify the Director-General of such change by using the appropriate Form LAPF. 8 prescribed in the Schedule to these Regulations.

   (2) Every contributing employer shall notify the Director-General of the date when a depositor ceases to be in his employment and shall furnish to the Director-General such further information as may be required for making known the whereabouts of such depositor.

   (3) In case of transfer or change of employment, the contributing employer to whom the depositor has been transferred shall furnish the Director-General with information regarding such transfer or change of employment by using Form LAPF. 9 as prescribed in the Schedule to these Regulations.

PART III
CONTRIBUTIONS (regs 12-23)

12.   Deduction and payment of contributions

   (1) There shall be made deduction of contribution and paid into the Fund by both contributing employer and depositor.

   (2) Every depositor shall contribute to the Fund the sum equivalent to five per centum of his monthly salary which sum shall be deducted by the contributing employer from the depositor's monthly salary.

   (3) A contributing employer shall in every month pay to the Fund a sum equal to fifteen per centum of a depositor's monthly salary as contribution under the Act known as bonus.

   (4) A depositor's contribution deducted and the contributing employer's bonus shall be paid to the Fund by the contributing employer within one month after the end of each month on which such contribution relates or falls.

13.   Mode of payment

   All contributions to the Fund shall be paid–

   (a)   by cheque drawn on any bank in Tanzania, delivered or sent by post to the office, or offices of the Fund as may be designated for that purpose;

   (b)   in such other manner as the Director-General may authorise in any particular case or cases.

14.   Record of employees

   Every contributing employer shall keep and maintain a record of employment in which he shall make necessary entries in respect of every person employed by him.

15.   Record of wages and contributions

   (1) A record of all wages paid including statutory and supplementary contributions payable during the month shall be entered in Form LAPF. 10 set out in the Schedule by the contributing employer and the same shall be forwarded together with the appropriate contributing to the Director-General.

   (2) Where a contributing employer employs a temporary employee, he shall pay to the Fund special contribution equal to fifteen per centum of the employees wage to the Fund by using Form LAPF. 11 as prescribed in the Schedule to these Regulations.

   (3) Supplementary and special contributions shall be paid to the Fund within thirty days from the date when they become due.

16.   Deposition of employer's records

   Where a contributing employer intends to close his business, he shall inform the Director-General thirty days before the date of closure of the business and shall submit to the Fund records of payments of contributions and remittances in accordance with the provisions of the Act.

17.   Payment of contributions for employees working outside Mainland Tanzania

   (1) A contributing employer who assigns an employee to undertake duties pursuant to the contract of service for the employer outside Mainland Tanzania shall notify the Director-General and shall together with the employee be liable to contribute to the Fund as if the employee was in Mainland Tanzania.

   (2) The provisions of subregulation (1) shall be subject to any agreement which the Fund may enter into with such organs of other countries concerning mutual arrangements to provide for collection of contributions and payment of benefits for employees working outside Tanzania.

18.   Payment of contributions for non-citizens

   A contributing employer who employs a non-citizen shall pay to the Fund contributions on his behalf subject to any agreement or contract of service and may make agreement with such organs of other countries concerning mutual arrangements to provide for collection of contributions and payments of benefits for employees working outside Mainland Tanzania.

19.   Duty of Depositors to contributing employer

   It shall be the duty of every depositor to the Fund to furnish to the contributing employer all necessary information and to produce any document required in completing any form or returns which may be made by an employer under the Act or under these Regulations.

20.   Refund of excess contributions

   (1) Subject to the provisions of these Regulations, where the Director-General is satisfied that an amount has been paid to the Fund in excess of the amount that was due to be paid, he may, subject to the provisions of subregulation (3), refund the amount so paid in excess to the person by whom it was made.

   (2) Where:

   (a)   the excess payment is not claimed within three years from the date on which it was made; or

   (b)   the person in respect of whom it was made has withdrawn it as a benefit,

such excess payment shall not be refunded but shall be deemed to have been properly made and be credited to the records of the depositor or depositors in respect of whom it was made.

   (3) Where an amount is due to the fund from the person to whom refund of the amount paid in excess would otherwise be made, the Director-General may retain the whole or any part of the excess payment and set it off against the amount due.

   (4) No refund shall be made and no amount shall be offset under this regulation except with the consent of the Director-General who may require the person by whom the excess payment was made to make a written application for refund and to furnish such information as he may require to determine the amount of the excess payment and the circumstances in which it occurred.

21.   Receipt of refund

   Where an excess payment has occurred, any portion of which, has been withheld or deducted from an employee's earnings, the Director-General shall refund to the employee the amount withheld or deducted in excess of the correct amount.

22.   Request for review

   (1) For the purpose of these Regulations "review" means the act of revisiting the records of a depositor's contributions and the bonus thereof for purposes of ascertaining the correct amount of money to be paid to a depositor.

   (2) Where a depositor's contribution is due for withdrawal, and the depositor or heir as the case may be, is dissatisfied with the amount paid by the Fund as the depositor's entitlement, the depositor or heir may call for a review to be undertaken by the Director-General.

   (3) A request for review to be filed with the Fund shall be in writing and shall bear the following particulars:

   (a)   depositor's full name and membership card number;

   (b)   grounds of review;

   (c)   statement of additional evidence, if any; and

   (d)   the name and address of person designated as personal representative by the depositor.

   (4) A request for review shall be filed at the headquarters or branch offices of the Fund within sixty days from the date of receipt of the determination of the Fund of the depositor's entitlement.

23.   Penalty

   (1) Where a contributing employer fails without reasonable cause to remit contributions within thirty days from the date on which they become due, the contributing employer shall be liable to the payment of a penalty being five per centum per month of the contributions which have been delayed, and the Director-General shall have powers to impose such penalty and demand the same from any person or contributing employer.

   (2) Where a contributing employer fails to remit contributions as under subregulation 1 of regulation 23, the Director-General shall issue a penalty notice LAPF. 14 as prescribed in the Schedule to these Regulations requiring the defaulter to pay the amount of penalty stated thereof.

   (3) Notwithstanding the provisions of these Regulations, the Board shall have power to deal with such a default in like manner as provided under the provisions of the Act to ensure that the contributing employer fulfils his obligations under the Act.

PART IV
BENEFIT WITHDRAWALS (regs 24-34)

24.   Evidence to support applications for benefits

   Any member who makes a claim for a benefit shall furnish such certificate, documents, information or other evidences as the Director-General may reasonably require in order to establish the identity and the right of that member to the benefit.

25.   Application for benefits

   (1) A member shall apply for benefits, by completing and delivering to the Director-General Application Forms prescribed in the Schedule to these Regulations together with appropriate supporting documents as prescribed in subregulations 2 and 3 herein below.

   (2) In a claim for retirement or withdrawal benefits, the claimant shall furnish to the Director-General the following documents:

   (a)   application Form LAPF. 12;

   (b)   membership card;

   (c)   a letter of notification of retirement or termination or resignation or dismissal as a depositor to the Fund;

   (d)   two passport photographs of the claimant.

   (3) In case of a survivor's benefit, the claimant shall furnish to the Director-General:

   (a)   a death certificate of the deceased depositor;

   (b)   application Form LAPF. 13 providing information and particulars of the deceased depositor;

   (c)   two passport size photographs of the administrator of the deceased estate.

26.   Dismissal for misconduct or resignation

   A member who is dismissed from employment for misconduct or resigns from employment, shall be paid an amount equal to the total deposits made by him and that of the contributing employer known as bonus together with interest which has accrued thereon.

27.   Payment of benefits before commencement of these Regulations

   (1) A member who applies and qualifies for retirement, withdrawal or survivor's benefit before the commencement of these Regulations shall be paid his benefits in accordance with the Local Government Provident Fund (Central Board of Management and General Provisions) Regulations, 1983, and the Local Government Provident Fund (Deposits and Withdrawals) Regulations, 1989.

   (2) Subject to the provisions of these Regulations a member who qualifies on grounds mentioned above shall be refunded all his contribution and interests accumulated thereof.

28.   Notification of retirement

   A member who is about to retire shall within six months before the date of retirement, notify in writing, the Director-General of his intention to retire.

29.   Evidence to prove claims and authentication

   The Director-General may, where he deems necessary, require from any claimant:

   (a)   such further evidence as is in his opinion necessary to prove the claim for the benefit; and or

   (b)   the authentication by an attesting witness of the signature of the member to the application for benefit.

30.   Declaration

   The Director-General may require any person who has made an application for the benefit to make a statutory declaration as to the truth of any statement of fact made by him in his application or in any evidence which may have been submitted along with the application.

31.   Medical examination

   Where the Director-General reasonably believes that circumstances exist which necessitate that a claimant entitled to any benefit should be medically examined, he may refer the claimant to a Medical Board for examination and may use the report as evidence in deciding the claimant's claim to the benefit.

32.   In case of death or any event

   (1) The death, retirement or termination of appointment of a member shall be notified to the Director-General by the contributing employer within thirty days from the date of such event.

   (2) The notification shall be in such form and manner as shall be specified by the Director-General.

33.   Payment of benefits

   The Director-General shall pay the benefit of the claimant by cheque or any other suitable instrument of payment he considers expedient and appropriate provided that no payments in relation to benefits shall be made in cash.

34.   Delivery by post

   (1) The posting of a letter containing an instrument of payment sent to a claimant at the address furnished on the Application Form LAPF. 2 or 13 as the case may be and as prescribed in the Schedule to these Regulations, shall as regards the liability of the Fund, be deemed equivalent to be a delivery of the instrument of the payment to the person to whom the letter was addressed.

   (2) Subject to the provisions of subregulation (1) where the instrument of payment is lost or destroyed, the Director-General may for good cause issue a duplicate or other instrument of payment, on production of duty executed indemnity to the Fund.

PART V
INSPECTION, OFFENCES, AND PENALTY (regs 35-43)

35.   Appointment of Inspector

   (1) It shall be the duty of an Inspector appointed under the Act to inspect at all times and at such places as the Director-General may direct the contributing employer's source records on which the depositor's earnings and contribution reports are based and any other form of information relating to liability to register or to contribute under the Act.

   (2) An Inspector who is instructed to inspect a contributing employer shall be issued with a special certificate of inspection contained in Form LAPF. 15 as prescribed in the Schedule to these Regulations by the Director-General under his hand or by a person acting on that behalf empowering the Inspector to carry out inspection on the contributing employer's source records.

   (3) A certificate of inspection issued to an Inspector by the Director-General under these Regulations shall bear the stamp of the Director-General and shall be in duplicate.

   (4) When an Inspector has carried out the inspection, he shall return the certificate of inspection to the Director-General who shall cause it to be initialled and kept in safe custody.

36.   Obstruction, assault or failure to produce document to inspector

   Any person who:

   (a)   obstructs or assaults; or

   (b)   fails to produce a document to an Inspector,

commits an offence and is liable on conviction to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding two years or to both such fine and imprisonment:

   Provided that nothing precludes prosecution to be taken under any law in respect of the offences mentioned in this regulation.

37.   Misrepresentation and failure to disclose

   Any person who:

   (a)   misrepresents himself; or

   (b)   fails to disclose any material facts to the Director-General, Inspector or any officer of the Fund duly instructed,

commits an offence and is liable on conviction to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.

38.   Dishonoured cheque and late remittances

   Notwithstanding any other provision in these Regulations relating to issuing of false documents by any person or any contributing employer and the punishment provided thereon, the Director-General shall cause to be paid to the Fund by any person or any contributing employer the total amount of contributions which remains unpaid being the subject matter of dishonoured cheque(s) and an interest equal to the current commercial bank rate when payment by a cheque(s) was made for purposes of contributions or other remittances the same became dishonoured by the paying bank for lack of funds or any other irregularity or where payment(s) were late remittance(s) to the Fund.

39.   Limitation of claims

   Any claim for payment of benefits or any claim payable from the Fund shall survive for a period of ten years from the date on which it accrued.

40.   Limitation of suits against the Board

   Nothing in the Act shall prejudice the right of the Board to rely upon any written law relating to the limitation of time for bringing proceedings against the Board.

41.   Procedure to serve notice to the Board

   Document relating to summons, notice, or any other document required or authorized to be served to the Board shall be served by delivering it to or by sending it by registered post addressed to the Director-General at the head office of the Fund.

42.   Appeals

   All appeals by or against the Board shall, depending on the court of original jurisdiction in any particular matter be brought before and heard by a competent Court exercising appellate jurisdiction.

43.   Compensation in case of misappropriation of funds

   (1) Where a depositor is convicted by the court of an offence involving misappropriation of funds belonging to the contributing employer and where the court issues an order for compensation an amount equal to the sum misappropriated may, on closing of such depositor's account be deducted from the amount standing to his credit in the Fund and paid as compensation to the contributing employer as the case may be.

This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article.