PENSION SCHEME REGULATION ACT
Arrangement of Sections
Section
PART I
PRELIMINARY
1. Short title
2. Application
3. Interpretation
PART II
THE PENSIONS AND INSURANCE AUTHORITY
4. Establishment of Authority
5. Functions of Authority
6. Constitution of Board
7. Registrar
PART III
REGISTRATION OF PENSION SCHEMES
8. Registration of Pension Schemes
9. Application for registration
10. Grant of certificate of registration
11. Creation of fund
12. Application of fund
13. Conditions of certificate of registration
14. Duration of certificate
15. Register of Pension Schemes
16. Use of Register in evidence
17. Inspection of Register
PART IIIA
REGULATION OF MANAGERS AND OTHERS
17A. Management etc of pension fund
17B. Qualification of manager, administrator or custodian
17C. Principal office
17D. Appointment of chief executive officer
PART IV
PRUDENTIAL REGULATIONS AND SUPERVISION OF PENSION SCHEMES
18. Conditions of compliance of Pension Schemes
19. Appointment of Actuary
20. Qualification of Actuary
21. Actuary rights and duties
22. Accounts and Audits
23. Appointment of auditor
24. Investment policy
25. Investment of funds
26. Returns
27. Institution of legal proceedings
28. Unsafe and unsound practices
29. Examination of fund by Registrar
29A. Imposition of levy
30. General obligation of manager
30A. Penalty for late remittance of pension contributions
31. Protection against attachment
32. Liability insurance
PART V
DE-REGISTRATION AND APPEALS
33. De-registration
34. Notification
35. Rights of contributors
36. Powers of Registrar if assets insufficient
37. Appeals
PART VI
MISCELLANEOUS
38. General guidelines
39. Appointment of inspectors
40. Powers of inspectors
41. Obstruction of inspectors
42. General penalty
42A. Inspector to furnish report
43. Exemption from Banking and Financial Services Act
44. Transitional provisions
44A. References to Registrar
44B. Vesting of assets of Registry Office
44C. Registration of property to be transferred by Government
44D. Legal proceedings
44E. Staff of Registry Office
45. Tax exemptions
46. Regulations
AN ACT
to establish the Pensions and Insurance Authority and define its functions and powers; to provide for the prudential regulation and supervision of pension schemes; and to provide for matters connected with or incidental to the foregoing.
[Long title subs by s 2 of Act 27 of 2005.]
[21st February, 1997]
Act 28 of 1996,
Act 10 of 2000,
Act 27 of 2005,
Act 28 of 2022,
SI 27 of 1997,
SI 51 of 2006.
[General Note— Section 4 of the Act 28 of 2022 deleted the words "pension plan rules" wherever they appeared in the Act and substituted them by the words "pension scheme rules".]
PART I
PRELIMINARY
This Act may be cited as the Pension Scheme Regulation Act.
This Act shall apply to any institution or company that establishes or manages a pension scheme except the National Pension Scheme established under the National Pension Scheme Act.
In this Act, unless the context otherwise requires—
"administrator" means a company or institution registered under this Act whose business includes—
(a) undertaking, pursuant to a contract or other arrangement the management and day to day administration of the fund; or
(b) providing consultancy and secretarial services to the scheme funds;
[Ins by s 3(a) of Act 27 of 2005.]
"Authority" means the Pensions and Insurance Authority established by section 4;
[Ins by s 3(a) of Act 27 of 2005.]
"Board" means the Pensions and Insurance Authority Board constituted under section 6;
[Ins by s 3(a) of Act 27 of 2005.]
"Chairperson" means the person appointed as Chairperson of the Board under section 6;
[Ins by s 3(a) of Act 27 of 2005.]
"committee" means a committee of the Board established under paragraph 5 of the Schedule;
[Ins by s 3(a) of Act 27 of 2005.]
"custodian" means a company which is incorporated under the Companies Act and which holds a banking licence issued under the Banking and Financial Services Act and is registered under this Act;
[Ins by s 3(a) of Act 27 of 2005.]
"Deputy Registrar" means the Deputy Registrar appointed under section 6;
"Fidelity Fund" means the Fidelity Fund established by section 109 of the Insurance Act;
[Ins by s 3(a) of Act 27 of 2005.]
"fund" means the total assets of a pension scheme;
"member" means a member of the Board or a committee of the Board;
[Ins by s 3(a) of Act 27 of 2005.]
"manager" means a company or institution registered under this Act whose business includes—
(a) undertaking, pursuant to a contract or other arrangement the management of the funds and other assets of a scheme fund for purposes of investment; or
(b) providing professional services on the investment of the scheme funds; or
(c) reporting or disseminating information concerning the assets available for investment of scheme funds
[Subs by s 3(c) of Act 27 of 2005.]
"Multi-employer trust" means the legal entity established by a group of employers into which all contributions, investment earnings, surpluses and other moneys are accumulated on behalf of members of a pension scheme or an entity which allows affiliation by any established pension scheme for the purposes of pooling resources for investments;
[Am by s 3(b) of Act 27 of 2005.]
"pension scheme" means any scheme or arrangement, other than a contract for life assurance, whether established by a written law for the time being in force or by any other instrument, under which persons are entitled to benefits in the form of payments, determined by age, length of service, amount of earnings or otherwise and payment primarily upon retirement, or upon death, termination of service, or upon the occurance of such other event as may be specified in such written law or other instrument;
[Subs by s 3(d) of Act 27 of 2005.]
"pension scheme rules" means the regulations which shall be issued by each pension fund and which shall be distributed to each member;
[Am by s 4 of Act 28 of 2022.]
"register" means the Register of Pensions established under this Act;
"Registrar" means the person appointed as Registrar under section 7;
[Ins by s 3(a) of Act 27 of 2005.]
"Registry Office" means the Registry Office for pension funds established as a Government department under the Ministry responsible for finance and national planning for the purposes of this Act;
[Ins by s 3(a) of Act 27 of 2005.]
"single-employer trust" means a legal entity established by a single employer into which contributions, investment earnings, surpluses and other moneys are accumulated on behalf of members of a pension scheme established pursuant to this Act;
[Ins by s 3(a) of Act 27 of 2005.]
"trust" means the legal entity, separate from the employer, in which the pension scheme funds are accumulated and includes a multi-employer trust or a single-employer trust.
[Subs by s 3(e) of Act 27 of 2005.]
PART II
THE PENSIONS AND INSURANCE AUTHORITY
[Part II subs by s 4 of Act 27 of 2005.]
(1) There is hereby established the Pensions and Insurance Authority which shall be a body corporate with perpetual succession and a common seal, capable of suing and of being sued in its corporate name, and with power, subject to the provisions of this Act, to do all such acts and things as a body corporate may by law do or perform.
(2) The provisions of the Schedule shall apply to the Authority.
[S 4 subs by s 4 of Act 27 of 2005.]
(1) The functions of the Authority shall be to—
(a) register and deregister pension schemes in accordance with this Act and in consultation with the minister responsible for labour and social security;
(b) register and deregister managers, administrators and custodians of pension schemes;
(c) regulate and supervise the establishment and management of occupational pension schemes and insurance businesses;
(d) protect the interests of members and sponsors of occupational pension schemes, and of shareholders and policy holders;
(e) licence re-insurers, insurers, insurance brokers, insurance agents, loss adjustors, loss assessors, claims agents and insurance risk surveyors;
(f) administer and manage the Fidelity Fund established pursuant to section 109 of the Insurance Act and settle claims against that Fund;
(g) formulate and enforce standards in the conduct of the business of insurance with which a member of the insurance industry must comply;
(h) monitor the solvency of insurers and ensure the observance of sound insurance principles and practices by the insurers in the conduct of insurance business;
(i) monitor and periodically review premium rates and scope of cover of policies that provide insurance cover in satisfaction of a legal requirement;
(j) in consultation with the Competition Commission, formulate and implement measures calculated to encourage healthy competition and eliminate unfair practices in the insurance and pensions industries;
(k) advise the Minister and the Minister responsible for Labour and Social Security in policies relating to the pensions and insurance industries;
(l) advise the Government on adequate insurance protection of national assets and properties;
(m) implement policies relating to the insurance and pension industries;
(n) promote the development of the insurance and pensions industries;
(o) set and enforce standards for the conduct of the business of insurance and occupational pension schemes; and
(p) undertake such other activities as are conducive or incidental to the performance of its functions under the Act;
(2) Notwithstanding sub-section (1), the Board may, by direction in writing and subject to such conditions as it considers fit, delegate to any member, committee or the Registrar any of its functions under this Act.
[S 5 subs by s 4 of Act 27 of 2005.]
(1) There is hereby constituted the Pensions and Insurance Authority Board which shall, subject to the provisions of this Act, perform the functions of the Authority under this Act.
(2) The Board shall consist of the following part-time members appointed by the Minister—
(a) a representative of the Ministry responsible for finance;
(b) a representative of the Ministry responsible for labour and social security;
(c) a representative of the Bank of Zambia;
(d) a representative of the Zambia Association of Chambers of Commerce and Industry;
(e) a representative of the Attorney-General;
(f) a representative of the Zambia Institute of Certified Accountants;
(g) a representative of the Zambia Federation of Employers;
(h) a representative of a trade union representing workers in the insurance or pensions industry; and
(i) one other person who shall have expertise in the administration of pension funds, insurance or actuarial matters.
(3) The members referred to in sub-section (2) shall be nominated by their respective organisations or ministries.
(4) The Chairperson and the Vice-Chairperson shall be appointed by the minister from among the members of the board.
(5) A person shall not be appointed as a member of the Board if the person—
(a) is an undischarged bankrupt;
(b) has been convicted of an offence involving fraud or dishonesty; or
(c) has been convicted of an offence under any other written law and sentenced to a term of imprisonment of not less than six months, without the option of a fine.
[S 6 subs by s 4 of Act 27 of 2005.]
(1) The board shall, with the approval of the Minister, in consultation with the Minister responsible for labour and social security appoint a Registrar who shall be the chief executive officer of the Authority and who shall, subject to the control and direction of the Board, be responsible for the implementation of the decisions of the Board and the day to day administration of the Authority.
(2) A person shall not be qualified for appointment as Registrar unless the Minister is satisfied that the person has qualifications and experience in actuarial analysis, business management, law or accounting.
(3) The Board shall, with the approval of the Minister, determine the terms and conditions of service of the Registrar.
(4) The Registrar shall attend meetings of the Board and may attend meetings of any committee of the Board and may address the meetings, but shall have no vote.
(5) The Registrar shall, subject to the direction of the Board—
(a) ensure that the pension fund is established in form of a single-employer trust or multi-employer trust separate from the employer's business;
(b) ensure that the pension scheme is laid down in pension scheme rules covering the contribution formula, all the benefits, type of plan, options provided and deadlines for choosing, calculation of portability rights and member's rights for participation in the management of the pension fund;
(c) examine the certificate of incorporation of the trust;
(d) ensure that an auditor and an actuary are appointed in accordance with this Act;
(e) examine the annual accounts, the report of the manager of pension fund and the auditor's report;
(f) examine the actuarial evaluation and ensure it is done periodically according to this Act;
(g) ensure that re-insurance arrangements are entered into in accordance with the actuary's recommendation;
(h) ensure that, in the case of a multi-employer trust, a written affiliation agreement exits, which adequately protects the pension fund's rights, the members’ rights and the portability of accrued rights;
(i) enforce any conditions imposed under this Act on a pension fund, trust or the manager, administrator or custodian of such a fund or trust;
(j) direct insurers and re-insurers on the standardisation of the contracts of compulsory insurance;
(k) direct an insurer or re-insurer where the Registrar is satisfied that the contract of insurance issued by the insurer or re-insurer is obscure or contains ambiguous terms or terms and conditions which are unfair or oppressive to the policy-holders, to clarify, simplify, amend or delete the wording, terms or conditions, as the case may be, in respect of future contracts; and
(l) exercise and perform such other powers and functions as may be conferred on the Registrar by or under this Act and the Insurance Act.
(6) The Registrar, shall at all times—
(a) protect the rights, benefits and other interest of the members in accordance with their corresponding pension scheme; and
(b) monitor the viability of a pension scheme and ensure that a pension scheme is operating on sound financial and actuarial principles.
[S 7 subs by s 4 of Act 27 of 2005.]
PART III
REGISTRATION OF PENSION SCHEMES
8. Registration of Pension Schemes
(1) A person shall not establish a pension scheme except in accordance with this Act and under the authority of a certificate of registration of a pension scheme issued under this Act.
[S 8(1) am by s 5(a) of Act 27 of 2005.]
(2) Every pension scheme, other than a scheme established by a written law, shall be established under an irrevocable trust.
[S 8(2) ins by s 5(b) of Act 27 of 2005.]
(3) Subject to sub-section (2) the rules of the scheme or fund shall make provision for—
(a) the manner of appointment or election of trustees and their term of office;
(b) the functions, powers and duties of the trustees which shall include the general supervision and administration of the scheme or fund;
(c) the number of trustees of whom one-half shall be appointed or elected by the members and the remainder shall be appointed by the sponsoring employer,
(d) the methods of, and ground for, removal from office of trustees;
(e) the election and appointment of a chairperson of the Board of trustees and the functions, powers and duties of such chairperson:
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Provided that the chief executive officer of the sponsoring company shall not be chairperson of the Board of trustees;
(f) the quorum at any meeting of the Board of trustees shall be 50 per centum of the total number of trustees;
(g) the procedure for convening any meeting;
(h) the manager, administrator or custodian shall attend the meetings of the Board of trustees as ex-officio member and may address those meetings but shall have no vote.
[S 8(3) ins by s 5(b) of Act 27 of 2005.]
(4) A person shall not be appointed as trustee of any scheme fund if that person—
(a) has been sentenced to imprisonment by a court of competent jurisdiction for fraud or dishonesty for a period of six months or more;
(b) is adjudged bankrupt;
(c) was previously involved in the management or administration of a scheme which was deregistered for any failure on the part of the management or the administration thereof;
(d) is disqualified under any other written law, from holding office as such; or
(e) is considered by the Board to be, in any way, detrimental to the scheme.
[S 8(4) ins by s 5(b) of Act 27 of 2005.]
(5) A person who establishes or manages a pension scheme in contravention of this section shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding five hundred thousand penalty units, or to imprisonment for a term not exceeding three years, or to both.
[S 8(2) renumbered as s 8(5) by s 5(c) of Act 27 of 2005.]
9. Application for registration
(1) A person may apply to the Registrar for a certificate to establish or manage a pension scheme.
(2) An application under sub-section (1) shall be in such form as may be prescribed by the Minister, by statutory instrument, and shall specify—
(a) the name and address of the applicant;
(b) the physical address of the place where the pension scheme is to be established, managed or administered;
[S 9(2)(b) am by s 6(a) of Act 27 of 2005.]
(c) a certified up to date extract from the register of companies;
(d) a description of the applicant's qualifications enabling him to manage or administer a pension scheme;
[S 9(2)(d) am by s 6(b) of Act 27 of 2005.]
(e) the name and address of the appointed actuary and auditor;
(f) the latest annual account established in compliance with generally accepted accounting principles and report of the auditor;
[S 9(2)(f) am by s 6(c) of Act 27 of 2005.]
(g) the latest actuarial valuation containing the confirmation that the pension fund's assets sufficiently cover the accrued benefit obligations;
[S 9(2)(g) am by s 6(d) of Act 27 of 2005.]
(h) the applicant has supplied such other information as the Registrar considers necessary in determining the application:
[S 9(2)(h) ins by s 6(e) of Act 27 of 2005.]
Provided that paragraphs (f) and (g) shall not apply to newly established pension funds or pension fund managers.
(3) An application under sub-section (1) shall be accompanied by the prescribed application fee.
10. Grant of certificate of registration
The Registrar shall issue the applicant with a certificate of registration authorising the applicant to establish, manage or administer a pension scheme, if the Registrar is satisfied that—
[S 10 renumbered as s 10(1) by s 7(a) and am by s 7(b) of Act 27 of 2005.]
(a) the applicant shall carry out the scheme in accordance with this Act and in accordance with generally accepted actuarial principles;
(b) the applicant shall protect the interests of the members;
(c) the applicant is likely to be at all times capable of meeting its obligations to members in accordance with the pension scheme rules;
(d) the applicant has the capacity and the necessary facilities to conduct and manage a pension fund professionally; and
(e) the applicant is capable of keeping the individual accounts of the members, and collecting the contributions and paying out the benefits.
(2) No scheme, other than a scheme established by a written law, shall be registered under this Act unless—
[S 10(2) ins by s 7(c) of Act 27 of 2005.]
(a) it is proposed to be established under an irrevocable trust;
[S 10(2)(a) ins by s 7(c) of Act 27 of 2005.]
(b) the proposed scheme rules adequately protect the rights and interests of the sponsors and members thereof;
[S 10(2)(b) ins by s 7(c) of Act 27 of 2005.]
(c) the trustees thereof satisfy the requirements for appointment specified in the Act;
[S 10(2)(c) ins by s 7(c) of Act 27 of 2005.]
(d) the proposed scheme rules provide for early retirement at the age of 55 years, normal retirement at the age of 60 years and late retirement at the age of 65 years;
[S 10(2)(d) ins by s 2 of Act 28 of 2022.]
(e) the proposed scheme rules provide for the payment of a pension on the retirement of an employee from the service of an employer on, or after, attaining the normal retirement age or on early retirement or due to an infirmity of mind or body;
[S 10(2)(e) ins by s 2 of Act 28 of 2022.]
(f) the proposed scheme rules provide that contributions made to the fund or scheme by the employer shall not be returned to the employer; and
[S 10(2)(f) ins by s 2 of Act 28 of 2022.]
(g) the proposed scheme rules provide that, where any pension payable out of the fund or the pension scheme to an employee may be commuted, the amount of the pension that may be commuted shall not exceed an annual pension equivalent to 20 per cent of the annual national average earnings or one half of the pension, whichever may be greater.
[S 10(2)(g) ins by s 2 of Act 28 of 2022.]
Each pension scheme registered under this Act shall have a fund established in a separate single-employer trust or multi-employer trust into which shall be paid all contributions, investment earnings, surpluses from insurance and other moneys, as may be required under the relevant pension scheme rules or under this Act.
[S 11 am by s 8 of Act 27 of 2005.]
There shall be charged on, and discharged from a pension fund—
(a) the payment of benefits in accordance with pertaining pension scheme rules and this Act;
(b) the expenses incurred in the management of the fund including the auditing and actuarial fees; and
(c) any other payments authorised to be made out of the fund under this Act or any other law.
13. Conditions of certificate of registration
(1) A certificate of registration shall be subject to the conditions laid down in this Act and such other conditions as the Registrar may consider necessary so as to ensure that the rights of the members under the pension plan are protected in accordance with this Act.
(2) The Registrar may attach such other conditions to a certificate when it is granted as the Registrar may determine.
(3) The conditions of a certificate of registration shall include conditions—
(a) requiring the trustee to comply with this Act, the pension scheme rules and the directions given by the Registrar under this Act;
[S 13(3)(a) am by s 9 of Act 27 of 2005.]
(b) requiring the trustee to furnish the Registrar, annually within three months after the end of the financial year, with the annual accounts established in compliance with the generally accepted accounting principles, the report of the auditor and the confirmation that the individual accounts of the members are duly kept;
[S 13(3)(b) am by s 9 of Act 27 of 2005.]
(c) requiring the trustee to furnish the actuarial reports in accordance with this Act;
[S 13(3)(c) am by s 9 of Act 27 of 2005.]
(d) requiring the trustee to file the pension plan scheme rules and any revisions to those rules for approval;
[S 13(3)(d) subs by s 3 of Act 28 of 2022.]
(e) requiring the trustee to maintain assets of such value as the actuary and the auditor may determine so as to ensure that the trustee shall meet his obligation towards the members; and
[S 13(3)(e) am by s 9 of Act 27 of 2005.]
(f) which the Registrar may determine in consultation with the actuary and the auditor.
Subject to the other provisions of this Act, a certificate of registration issued in respect of a scheme shall be valid from the date of issue and shall remain in force until the scheme is deregistered or wound up in accordance with the scheme rules or the provisions of the written law, under which the scheme is established.
[S 14 subs by s 10 of Act 25 of 2007.]
15. Register of Pension Schemes
(1) The Registrar shall establish and maintain a register to be known as the Register of Pension Schemes, in which shall be entered particulars of all registered pension schemes in accordance with this Act.
(2) The particulars under sub-section (1) shall include—
(a) the name of the pension scheme and the date of registration;
(b) a specification whether it is a single or multi-employer trust;
(c) a summary of the pension scheme rules stating the type of pension scheme;
(d) a statement of assets and liabilities of the pension fund;
(e) the investment portfolio including a summary of the investments and the net return on investment realised during the last financial year;
(f) the total administration cost in per cent of the total contributions made to the fund;
(g) the financial year of the pension scheme; and
(h) such other particulars as the Minister may prescribe.
16. Use of Register in evidence
(1) For the purposes of ascertaining the facts concerning the registration of a pension scheme, entries made in the Register shall be prima facie evidence as to the facts specified in the Register.
(2) A document certified by the Registrar as a true copy or extract from the Register shall be admissible in any court as prima facie evidence of the contents of the Register.
The Register or a copy of the Register shall be available for inspection by the public at the office of the Registrar during business hours and upon payment of such fee as may be prescribed by regulation.
PART IIIA
REGULATION OF MANAGERS AND OTHERS
[Part IIIA ins by s 11 of Act 27 of 2005.]
17A Management etc of pension fund
(1) A person shall not act as a manager, administrator or custodian of a pension fund unless that person is registered as such and holds a valid certificate of registration issued under this Act.
(2) A person may apply to the Board for registration as a manager, administrator or custodian of a pension fund in the prescribed form.
(3) The Board shall within, sixty days of the date of receipt of an application for registration, consider the application.
(4) Where the Board is satisfied that the applicant has complied with the requirements for registration ander this Act, the Board shall, on the payment of the prescribed fee, register the applicant and may refuse to register the applicant where the Board is not so satisfied.
(5) Upon registration the Board shall issue the applicant with a certificate of registration in the prescribed form.
(6) Where the Board refuses to register an applicant as a manager, administrator or custodian, as the case may be, the Board shall, in writing, furnish the applicant concerned with the reasons for such refusal within fourteen days of taking the decision.
(7) A certificate of registration issued under sub-section (5) shall, unless earlier revoked, be valid from the date of issue to the 31st day of December next following the date of issue.
(8) A registered manager, administrator or custodian may apply for renewal of registration three months before the expiration of the certificate of registration upon payment of the prescribed renewal fee.
(9) Notwithstanding the provisions of sub-section (7), where an application for the renewal of a certificate of registration has been made, such certificate shall continue in force until the application for renewal is determined.
(10) A registered manager, administrator or custodian shall not transact any business for which the manager, administrator or custodian is not registered under this Act.
[S 17A ins by s 11 of Act 27 of 2005.]
17B. Qualification of manager, administrator or custodian
(1) A person shall not be registered as a manager unless the person—
(a) is a limited liability company incorporated under the Companies Act whose liability is limited by shares and one of whose objects is to manage pension funds;
(b) has such minimum paid up share capital as may be determined by the Board;
(c) has the professional capacity to manage pension funds;
(d) has never been involved in the management of the fund or any scheme which was deregistered due to any failure on the part of management; and
(e) has shares of which not less than 51 per cent are held by a Zambian citizen or by a partnership whose partners are Zambian citizens or by a body corporate whose shares are wholly owned by citizens of Zambia.
(2) A person shall not be registered as an administrator unless the person—
(a) is a limited liability company incorporated under the Companies Act whose liability is limited by shares and one of whose objects is to undertake administrative or secretarial functions of a pension scheme or fund;
(b) has such minimum paid up share capital as may be prescribed by the Board;
(c) has the professional capacity to administer a pension scheme;
(d) has never been involved in the administration of any scheme which was deregistered due to any failure on the part of the administrator; and
(e) has shares of which not less than 51 per cent are held by a Zambian citizen or by a partnership whose partners are Zambian citizens or by a body corporate whose shares are wholly owned by citizens of Zambia.
(3) A person shall not be registered as a custodian unless the person—
(a) is a limited liability company incorporated under the Companies Act whose liability is limited by shares and one of whose objects is to perform the functions of the custodian within the meaning of this Act;
(b) has professional and technical capacity and adequate operational systems to perform the functions of custodian;
(c) has never been a custodian of any pension scheme or fund which was deregistered due to any fault, either fully or partially, of the custodian; and
(d) has shares of which not less than 51 per cent are held by a Zambian citizen or by a partnership whose partners are Zambian citiziens or by a body corporate whose shares are wholly owned by citizens of Zambia.
(4) The Board may refuse to register a person as a manager, administrator or custodian under this Act on the ground that—
(a) the person has not provided the Board with such information relating to the company or any person employed by or associated with the company or of any circumstance likely to affect its method of conducting business as may be prescribed by the Board;
(b) any director of the company has become mentally or physically incapable of performing the duties of a manager, administrator or custodian;
(c) any director of the company is an undischarged bankrupt;
(d) it appears to the Board that the company should not be registered because the company or any director, controller, secretary, employee or officer concerned in the management of the company has been convicted, whether in Zambia or elsewhere, of an offence involving fraud or dishonesty, or has been convicted of any offence under this Act;
(e) it appears to the Board by reason of any other circumstances which either are likely to lead to improper conduct of business by, or reflect discredit on the method of conducting business of the company; or
(f) the Board has reason to believe that the company will not efficiently, honestly and fairly perform the duties required of it under this Act.
(5) A manager, administrator or custodian in operation on the date of the commencement of this Act shall comply with the requirements of shareholding by Zambian citizens within two years from the date of the commencement of this Act.
[S 17B ins by s 11 of Act 27 of 2005.]
(1) A registered manager, administrator or custodian shall maintain a principal office in Zambia and shall furnish the Registrar with the address of the office.
(2) Where a registered manager, administrator or custodian changes the address of the principal office the manager, administrator or custodian shall notify the Registrar of the change of address within three months of making the change.
(3) A manager, administrator or custodians who contravenes sub-sections (1) and (2) shall be liable to pay to the Board a penalty of 1000 fee units for each day the contravention continues.
[S 17C ins by s 11 of Act 27 of 2005.]
17D. Appointment of chief executive officer
(1) Every registered manager, administrator or custodian shall, with the approval of the Registrar, appoint a chief executive officer and shall, for the purpose of such approval, notify the Registrar of the following—
(a) the full name and address of the officer,
(b) the date and place of birth of the officer;
(c) the officer's citizenship;
(d) the officer's academic and professional qualifications; and
(e) work experience and record of employment.
(2) The Registrar shall not approve the appointment of any person as a chief executive officer unless the Registrar is satisfied that the person—
(a) is resident in Zambia;
(b) has served in the pension fund or the financial sector or industry in a senior management position for a period of not less than—
(i) 10 years in the case of a manager,
(ii) 10 years in the case of a custodian; and
(iii) 7 years in the case of an administrator;
(c) has power of attorney sufficient to allow the person to act for the registered manager, administrator or custodian in all matters necessary to secure the compliance of the manager, administrator or custodian with the provisions of this Act and regulations made under the Act; and
(d) is not disqualified by this Act from appointment, and is in all respects a fit and proper person to be the chief executive officer of the manager, administrator or custodian.
(3) A copy of the power of attorney referred to in paragraph (c) of sub-section (2) shall be lodged with the Registrar immediately after any appointment of a chief executive officer.
(4) If it appears to the Registrar that the person appointed as chief executive officer of a manager, administrator or custodian is not a fit and proper person to hold office as such, the Registrar, after giving the person concerned an oppotunity to be heard, may if the Registrar thinks fit, by notice in writing to the manager, administrator or custodian, direct the manager, administrator or custodian to revoke the appointment with effect from the time specified in the notice.
(5) A notice under sub-section (4) shall specify the reasons for the Registrar's decision to revoke the appointment of the chief executive officer and shall require the manager, administrator or custodian to whom the notice is addressed to comply with the notice.
(6) The minister may, on the advice of the Board, by statutory instrument, extend the provisions of sub-sections (1) to (5) withnecessary modification, to any office having duties of a kind prescribed in that statutory instrument in relation to the business of the manager, administrator or custodian.
(7) An officer or employee of a manager, administrator or custodian shall not be an officer or employee of another manager, administrator or custodian.
(8) Any person who contravenes sub-section (7) commits an offence and shall be liable, on conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding twelve months or to both.
[S 17D ins by s 11 of Act 27 of 2005.]
PART IV
PRUDENTIAL REGULATIONS AND SUPERVISION OF PENSION SCHEMES
18. Conditions of compliance of Pension Schemes
(1) A pension scheme shall—
(a) make adequate arrangements for the preservation of pension rights so as to protect the interest of its members;
(b) lay down the rights and obligations of the members in writing in the pension scheme rules, a copy of which shall be given to each member;
(c) each year give to every member a benefit statement showing the member's actual benefits and the member's accrued portable benefits;
(d) if it is a defined benefit scheme, during the first four years after registration, carry out an actuarial valuation every two years, thereafter at least every three years so as to review and determine the sound funding of the pension scheme;
[S 18(1)(d) subs by s 12(a) of Act 27 of 2005.]
(e) in managing its assets, aim to maintain at any time the real value of its members' accrued portable benefits; and
(f) grant to members leaving the scheme before a benefit has become payable full portability of the accrued retirement benefits at the time the member leaves the scheme.
(2) For the purposes of this section and the defined contribution schemes "portable benefits" means the total of the retirement contributions paid by the employee and the employer on the leaving member's account, plus interest during his participation under the plan.
(3) Where a member leaves a scheme under paragraph (f) of sub-section (1), in the case of—
(a) a defined contribution scheme, the portable benefits shall be the total of the retirement contributions paid by the member and the member's employer on the leaving member's account, plus interest during his participation under the plan; and
(b) a defined benefit scheme, the portable benefit shall amount to the present value of the accrued retirement pension to be determined by the scheme actuary.
[S 18(3)(b) am by s 12(b) of Act 27 of 2005.]
(4) For the purposes of this section the Minister shall, on the recommendation of the Board, by statutory instrument, regulate the minimum interest rates to be applied when calculating the portable benefits.
[S 18(4) ins by s 12(c) of Act 27 of 2005.]
The board of trustees shall appoint an actuary to the fund, who shall not be bound to take directions from the manager, the trustees or the employer, and shall be financially independent from any such person or body.
[S 19 am by s 13 of Act 27 of 2005.]
The board of trustees shall not appoint an actuary to its pension scheme for the purposes of this Act unless the actuary so appointed has an actuarial qualification equivalent to the one of an associate or fellow of the Institute of Actuaries of England and has the experience to perform the tasks assigned to him under this Act.
[S 20 am by s 14 of Act 27 of 2005.]
21. Actuary's rights and duties
(1) An actuary appointed under section 19 shall prepare an actuarial valuation of a pension scheme at the intervals stated in paragraph (d) of sub-section (1) of section 18.
(2) The actuary shall, upon any valuation of a pension scheme, prepare a report on the state of the fund with regard to the fund's ability to meet the obligations it has entered into in the pension scheme rules and the affiliation agreement and shall make recommendations and state any action required to be taken by, the manager of such a pension scheme.
(3) The actuary shall submit the report under sub-section (2) to the manager, the trustees and the Registrar and a copy to the Minister.
(4) The Registrar shall ensure that the recommendations made by the actuary are carried out by the manager and trustees, within the deadlines fixed by the Registrar in consultation with the actuary, the manager and the trustees.
(5) A manager or trustee who contravenes this section shall be guilty of an offence and shall be liable upon conviction to a fine not exceeding fifty thousand penalty units or to imprisonment for a term not exceeding three years, or to both.
[S 21(5) am by s 15 of Act 27 of 2005.]
The board of trustees shall after the end of each financial year cause to be prepared—
[S 22 am by s 16 of Act 27 of 2005.]
(a) an audited balance sheet;
(b) an audited statement of income and expenditure;
(c) an audited statement of the administration cost;
(d) an audited statement that the individual account for the members are duly established in accordance with the pension rules under this Act;
(e) such other information as the Registrar may require in order to ensure compliance with the pension rules and this Act;
(1) The trustees of a pension scheme shall appoint an auditor for each financial year.
[S 23(1) am by s 17(a) of Act 27 of 2005.]
(2) A person shall not be qualified for appointment as an auditor unless he is a member in good standing of a professional association of accountants in Zambia under the Accountant's Act.
(3) The auditor appointed under sub-section (2) shall not be bound to take directions from the manager, the trustees and the employer and shall be financially independent from any such person.
(4) An auditor appointed under sub-section (2) shall audit the accounts of the pension fund for the financial year for which he was appointed, and audit annually the pension fund so as to ensure compliance with this Act.
(5) The auditor shall submit a report to the board of trustees and the manager of the pension scheme so audited.
(6) The trustees shall lodge a copy of its accounts in accordance with sub-section (1) and the auditor's report to the Registrar within three months after the end of its financial year.
[S 23(6) am by s 17(b) of Act 27 of 2005.]
(7) Any person who contravenes sub-section (6) shall be liable to pay a late submission penalty of 1000 fee units for each day the annual report is late.
[S 23(7) ins by s 17(c) of Act 27 of 2005.]
(1) Each pension scheme shall have an investment policy so as to—
(a) achieve secure and profitable investments; and
(b) maintain at any time the real value of its members' accrued portable benefits
(2) The trustees of a pension scheme shall, at such times as the Registrar may require, prepare and furnish to the Registrar, a statement of existing and proposed investments for the pension scheme.
[S 24(2) am by s 18 of Act 27 of 2005.]
(1) The trustees may invest in such type of investment as may be approved by the Registrar.
(2) A pension fund shall not make unsecured loans to an affiliated employer:
Provided that any secured loan to an employer shall not exceed five per centum of the total assets of the pension fund.
(3) The Minister may, on the recommendation of the Board, by statutory instrument, issue investment guidelines relating to the limits for investment categories:
Provided that the Minister may, on the recommendation of the Board, by statutory order, permit a pension fund to invest and maintain outside Zambia for the benefit of members not more than 30 per centum of the net assets of the pension fund subject to agreement between the trustees and the fund managers.
[S 25 subs by s 19 of Act 27 of 2005.]
(1) The trustees shall prepare quarterly returns in the prescribed form relating to the investment of pension funds, and shall furnish the returns to the Registrar within 14 days after the end of each quarter.
[S 26(1) subs by s 20(a) of Act 27 of 2005.]
(2) The quarterly returns under sub-section (1) shall be recorded in the register, and made available for inspection by the public; and inspection shall be free of charge to the members.
(3) For purposes of sub-section (1), the first quarter ends on 31st March, the second quarter ends on thirtieth June, the third quarter ends on thirtieth September and the fourth quarter ends on 31st December of each year.
[S 26(3) ins by s 20(b) of Act 27 of 2005.]
(4) Any person who contravenes sub-section (1) shall be liable to a late submission penally of 500 fee units for each day the quarterly return is late.
[S 26(4) ins by s 20(b) of Act 27 of 2005.]
27. Institution of legal proceedings
A contributor may institute legal proceedings against any trustee contravening this Act, pension scheme rules or regulations so as to protect his contributions under a pension scheme.
[S 27 am by s 21 of Act 27 of 2005.]
28. Unsafe and unsound practices
(1) Where in the opinion of the Registrar, the auditor, the actuary and the trustees are pursuing any act or course of conduct that the Registrar considers as unsafe or of unsound business practice, the Registrar shall direct the manager of such a pension scheme to refrain from adopting or pursuing a particular course of action.
[S 28(1) am by s 22(a) of Act 27 of 2005.]
(2) The trustees shall comply with the directions given by the Registrar under sub-section (1).
[S 28(2) am by s 22(b) of Act 27 of 2005.]
(3) Directions given under this section shall be given by notice in writing to the trustees of a pension scheme and may in like manner be varied or revoked.
[S 28(3) am by s 22(c) of Act 27 of 2005.]
(4) A direction given under this section shall be effective immediately and shall remain in effect in accordance with its terms.
(5) The trustees acting in contravention of this section shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding fifty thousand penalty units, or to imprisonment for a term not exceeding three years, or to both.
[S 28(5) am by s 22(d) of Act 27 of 2005.]
29. Examination of fund by Registrar
(1) The Registrar may cause an on site examination to be made of a pension scheme's books of accounts so as to determine the viability of the fund and to determine whether the pension fund is operating prudently in accordance with section 24.
(2) An examination under sub-section (1) shall be made by the Registrar if—
(a) he has reasonable cause to believe that the trustees is contravening the Act;
[S 29(2)(a) am by s 23(a) of Act 27 of 2005.]
(b) the manager has continued to contravene any requirement under this Act after notice has been given to him by the Registrar;
(c) the trustees has failed to carry out the recommendations made by an actuary under this Act; or
[S 29(2)(c) am by s 23(b) of Act 27 of 2005.]
(d) he has received a complaint from a member under a pension scheme.
(3) The Registrar shall publish his findings in the Gazette within 30 days after he has concluded the examination under sub-section (1) and shall furnish a copy to the trustees.
[S 29(3) am by s 23(c) of Act 27 of 2005.]
(4) Subject to sub-section (1), the Registrar may give such directions as he sees fit to the trustees so as to protect the member's interest.
[S 29(4) am by s 23(d) of Act 27 of 2005.]
(1) The Board may, with the approval of the Minister, impose such levy—
(a) on the net assets of pension funds;
(b) on insurance premiums paid to insurers and re-insurers; on such base as the Board may determine.
(2) A levy imposed under this section shall be payable at such rate as the Minister may, on the recommendation of the Board, by statutory instrument, prescribe.
(3) The statutory instrument made under sub-section (2) shall specify the time at which any amount payable by way of the levy under this section shall become due.
(4) All moneys received in respect of the levy shall be paid to the Authority and if not paid on or before the date stated in the Registrar's regulatory statement as provided under section 38 the amount due and any sum payable under this section shall be a civil debt recoverable summarily by the Authority.
[S 29A ins by s 24 of Act 27 of 2005.]
30. General obligation of manager
The trustees, administrator or manager shall—
[S 30 am by s 25 of Act 27 of 2005.]
(a) ensure that the pension scheme is at all times managed in compliance with this Act, pertaining regulations, the pension scheme rules and directions of the Registrar;
(b) take reasonable care to ensure that the administration of pension funds is carried out in the best interest of members of pension scheme and that members are informed periodically in accordance with the pension rules and this Act;
(c) report to the Registrar immediately any occurrences which in his view could affect the rights of the members under the pension plan or under this Act;
(d) report to the Registrar immediately if the contributions of an employer or a member are more than one month in arrears;
(e) inform the Registrar of any mass-dismissals in process or impending with a contributing employer.
30A. Penalty for late remittance of pension contributions
From the date of the commencement of this Act, any employer who does not remit pension contributions to a pension fund within 30 days after the end of the month to which the contributions relate shall be liable to pay interest on the contributions at the Bank of Zambia rate and a penalty of 1000 penalty units for each day the remittance of the contributions is late.
[S 30A ins by s 26 of Act 27 of 2005.]
31. Protection against attachment
Notwithstanding anything contained in any other law, where any judgment or order has been obtained against a member, no execution or attachment or process of any nature shall be issued against the contributions of a member, or an employer, except in accordance with the terms of the pension scheme and such contributions shall not form part of the assets of the member or an employer in the event of bankruptcy.
A manager, administrator or trustees in consultation with the auditor and the actuary shall take out liability insurance with a recognised insurance company against the negligence or dishonesty of the directors, officers or employees of a pension scheme in order to safeguard its member's contributions and a copy of the insurance policy shall be lodged with the Registrar.
[S 32 am by s 27 of Act 27 of 2005.]
PART V
DE-REGISTRATION AND APPEALS
(1) The Board, on the recommendation of the Registrar may deregister a pension scheme if—
(a) it appears to the Board that the manager has contravened or failed to comply with any provision of, or requirement under, this Act or regulations made under this Act or the pension scheme rules; or
(b) it is wound-up in accordance with such regulations as the Minister may, on the recommendation of the Board, prescribe.
[S 33(1) subs by s 28(a) of Act 27 of 2005.]
(2) The Board shall, before taking any action under this section, satisfy himself so far as the Board reasonably can, that the action would not unfairly operate to the detriment of a contributor of a pension scheme.
[S 33(2) am by s 28(b) of Act 27 of 2005.]
(3) The Board may appoint a curator who in the opinion of the actuary and of the auditor has had training and experience in pension fund management, to advise the manager on the implementation of such measures as may be specified by the Board after consultation with the actuary and the auditor to restore the pension scheme to a sound financial and operating condition.
[S 33(3) am by s 28(c) of Act 27 of 2005.]
(4) When a curator is appointed under this section, the manager and any of his employees shall act in accordance with every instruction given by the curator concerning the pension scheme or any part of the pension scheme's administration and operations that is regulated by or under this Act.
(5) If a manager fails to comply with any instruction of a curator appointed under this section, he shall be guilty of an offence and liable, upon conviction, to a fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding five years, or to both.
(6) The curator shall comply with any written instruction of the Board, and in all other matters shall act honestly and in good faith so as to restore the pension scheme to a sound financial and operating condition.
[S 33(6) am by s 28(d) of Act 27 of 2005.]
(7) Any act or omission of the manager in accordance with a direction of the curator shall be binding upon the manager, but no person shall have any right or claim against the curator or the Board as a result of any direction given by the curator in good faith in accordance with this Act.
[S 33(7) am by s 28(e) of Act 27 of 2005.]
(8) The curator shall advise the Board within six months following the curator's appointment whether in his opinion the pension scheme can be restored to a sound financial and operating condition within a reasonable time, or should be de-registered.
[S 33(8) am by s 28(f) of Act 27 of 2005.]
(9) The Board shall not be bound to accept the advice of a curator under sub-section (8).
[S 33(9) am by s 28(g) of Act 27 of 2005.]
(1) The Board shall within 14 days after its decision to de-register a pension scheme notify, in writing—
(a) the manager, the actuary and the auditor;
(b) the members of such a pension scheme;
(c) the employer of a member and any other person otherwise entitled to any funds held by the pension fund;
of the decision to de-register the pension scheme.
[S 34(1) am by s 29(a) of Act 27 of 2005.]
(2) A notice for the purposes of sub-section (1), shall set forth such information as the Board may require by notice to the manager, contributor and contributor's employer.
[S 34(2) am by s 29(b) of Act 27 of 2005.]
The decision of the Board under this Part for de-registration of a pension scheme shall not prejudice the rights of a contributor or other creditor to payment in full of a claim against the scheme.
[S 35 am by s 30 of Act 27 of 2005.]
36. Powers of Registrar if assets insufficient
If the Board finds that the assets of a pension scheme that is de-registered shall not be sufficient for the full discharge of its obligations to its members, the Board may take over the distribution of the assets and the supervision of the pension fund so as to protect contributors' interest under the pension scheme so de-registered and such distribution shall take place only after a corresponding distribution plan has been established by the Board.
[S 36 am by s 31 of Act 27 of 2005.]
(1) Any person aggrieved by the Board's—
(i) refusal to register a pension scheme;
(ii) refusal to register such person as a manager, administrator or custodian, as the case may be or to renew a certificate of registration on its expiry; or
(iii) decision to de-register a pension scheme;
may appeal to the Minister within 30 days after receiving notification of the Board's refusal or decision.
[S 37(1) subs by s 32(a) of Act 27 of 2005.]
(2) A person not satisfied with the decision of the Minister under sub-section (1) may appeal to the High Court within 30 days.
(3) The Board shall give effect to the decision of the Minister under sub-section (1) pending a decision of the High Court.
[S 37(3) am by s 32(b) of Act 27 of 2005.]
(4) Where an appeal is disallowed by the Minister or the High Court, the Board shall take adequate steps to ensure the member's interest under the pension scheme are protected.
[S 37(4) am by s 32(c) of Act 27 of 2005.]
PART VI
MISCELLANEOUS
The Registrar shall have power to prescribe and publish guidelines or other regulatory statements as he, in consultation with the actuaries and the auditors, may consider necessary or desirable for the administration and execution of this Act.
(1) In order to ensure compliance with the provisions of this Act the Minister may appoint suitably qualified public officers as inspectors for the purposes of this Act.
(2) Every inspector shall be provided with a certificate of appointment, and in the exercise of any powers of the inspector under this Act, the inspector shall produce the certificate for inspection by any person reasonably requiring its production.
For the purposes of this Act, an inspector may at any reasonable time, enter the premises where a pension scheme is operating and inspect any accounts, documents or records relating to a pension scheme so as to determine the viability of such a pension scheme.
A person who—
(a) delays or obstructs an inspector in the exercise or performance of the inspector's powers and functions;
(b) refuses to give an inspector such reasonable assistance as the inspector may require for the purpose of the exercise of the inspector's power under this Act; or
(c) gives an inspector false or misleading information in answer to any inquiry made by the inspector;
shall be guilty of an offence and shall be liable, upon conviction to a fine not exceeding one hundred thousand penalty units or to imprisonment for a term not exceeding five years, or to both.
(1) Any person who—
(a) contravenes any provision of this Act that is expressly stated to be an offence but for which no other penalty is provided; or
(b) fails to comply with any direction given by the Registrar under this Act;
shall be guilty of an offence and be liable on conviction to a fine not exceeding fifty thousand penalty units or to imprisonment for a term not exceeding three years, or to both.
(2) In the case of any offence under this Act committed by a body of persons—
(a) in the case of a body corporate, every director or similar officer of the body shall be guilty of the offence; and
(b) in the case of a partnership, every partner shall be guilty of an offence.
(3) Where an offence under this Act committed by a manager, administrator or custodian is proved to have been committed with the consent or connivance of any director or officer, such director or officer shall be deemed to have committed the same offence and shall, on conviction, be liable to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding 12 months, or to both.
[S 42(3) ins by s 33(a) of Act 27 of 2005.]
(4) A person shall not be guilty of an offence under sub-section (1), if he proves to the satisfaction of the court that the act constituting the offence was done without his knowledge, consent or connivance or that he attempted to prevent the commission of the offence having regard to all the circumstances of the case.
[S 42(3) renumbered as s 42(4) by s 33(b) of Act 27 of 2005.]
42A. Inspector to furnish report
Each inspector shall furnish the Board with such reports and other information relating to an inspection as the Board may direct.
[S 42A ins by s 34 of Act 27 of 2005.]
43. Exemption from Banking and Financial Services Act
The Banking and Financial Services Act shall not apply to any pension scheme registered under this Act in so far as it relates to the regulation and supervision of a pension scheme.
Any pension scheme to which this Act applies that was operating immediately before the commencement of this Act shall apply to the Registrar for registration within 90 days after the commencement of this Act.
On or after the appointed date, reference in any written law or any other legal document to the Registrar of Pensions and Insurance shall be read and construed as references to the Registrar appointed under section 7 of this Act.
[S 44A ins by s 35 of Act 27 of 2005.]
44B. Vesting of assets of Registry Office
(1) On or after the appointed date, there shall he transferred to, and vest in, or subsist against, the Authority by virtue of this Act and without further assurance—
(a) the affairs of the Registry Office and
(b) subject to this Act, all property, rights and obligations which immediately before the appointed date were the property, rights and obligations of the Registry Office.
(2) Except as provided in this Act, every deed, bond and agreement (other than an agreement for personal service) to which the Government was a party immediately before the commencement of this Act in respect of the Registry Office, whether in writing or not, and whether or not of such a nature that rights, liabilities and obligations thereunder could be assigned, shall, unless its subject-matter or terms make it impossible that it should have effect as modified in the manner provided by this sub-section, have effect as from the date of the assignment thereof, as if—
(a) the Authority had been a party thereto;
(b) for any reference to the Government there were substituted, as respects anything falling to be done on or after the appointed date, a reference to the Authority; and
(c) for any reference to any officer of the Registry Office not being a party thereto and beneficially interested therein there were substituted, as respects anything falling to be done on or after the commencement of this Act, a reference to such officer of the Authority as the Authority shall designate.
(3) Subject to the provisions of sub-section (2), documents, other than those referred to therein, which refer specifically or generally to the Registry Office shall be construed in accordance with sub-section (2) as fer as applicable.
[S 44B ins by s 35 of Act 27 of 2005.]
44C. Registration of property to be transferred by Government
(1) Where under this Act, any property, rights, liabilities and obligations of the Government through the Registry Office are deemed transferred to the Authority in respect of which transfer a written law provides for registration, the Authority shall make an application in writing to the appropriate authority for registration of the transfer.
(2) The registration authority referred to in sub-section (1) shall make such entries in the appropriate register as shall give effect to such transfer and, where applicable, issue to the transferee concerned a certificate of title in respect of the property or make necessary amendments to the register, as the case may be, and shall make endorsement on the deeds relating to the title, right or obligation concerned, and no registration fees, stamp duty or other duties shall be payable in respect thereof.
[S 44C ins by s 35 of Act 27 of 2005.]
(1) Without prejudice to the other provisions of this Act, where any right, liability or obligation vests in the Authority by virtue of this Act, the Authority and all other persons shall, as from the commencement of this Act, have the same rights, powers and remedies (and in particular the same rights as to the instituting or defending of legal proceedings or the making or resisting of applications to any authority) for ascertaining, perfecting that right, liability or obligation as they would have had if it had at all times been a right, liability or obligation of the Authority.
(2) Any legal proceedings or application of any authority pending immediately before the commencement of this Act by or against the Government in respect of the Registry Office may be continued by or against the Authority.
(3) After the commencement of this Act, proceedings in respect of any right, liability or obligation which was vested in, held, enjoyed, incurred or suffered by the Government in respect of the Registry Office may be instituted by or against the Authority.
[S 44D ins by s 35 of Act 27 of 2005.]
(1) On or after the appointed date, the Board shall on such terms and conditions as it may, with the approval of the Minister, determine appoint as officers of the Authority such public officers from the Registry Office as may be necessary for the performance of the functions of the Authority.
(2) Where an officer from the Public Service is appointed to the service of the Authority—
(a) the terms and conditions of service with the Authority shall not be less favourable than those the officer enjoyed in the Public Service; and
(b) the officer shall be deemed to have retired under section 39 of the Public Service Pensions Act.
(3) On or after the appointed date public officers from the Registry Office who are not engaged by the Authority under sub-section (2) shall be retained by the Government and shall—
(a) be redeployed in the service of the Government; or
(b) be retired under section 39 of the Public Service Pensions Act.
[S 44E ins by s 35 of Act 27 of 2005.]
Any pension scheme to which this Act applies shall be entitled to tax exemptions as may be provided for under the Income Tax Act.
(1) The Minister, in consultation with the Minister responsible for labour and social security, and the Registrar, may, by statutory instrument, make regulations to give effect to the provisions of this Act, and to prescribe anything which by the provisions of this Act is required to be prescribed.
(2) Without limiting the generality of sub-section (1), regulations may provide for the following matters—
(a) the form and manner of making applications for registration of a pension scheme and fees payable for such application;
(b) prescribe investment guidelines; and
(c) the form and manner of appeals.
FIRST SCHEDULE
(Section 4)
PART I
ADMINISTRATION OF AUTHORITY
1. Seal of Authority
(1) The seal of the Authority shall be such device as may be determined by the Board and shall be kept by the Secretary.
(2) The affixing of the seal shall be authenticated by the Chairperson or the Vice-Chairperson and the Secretary or any other person authorised in that behalf by a resolution of the Board.
(3) Any contract or instrument which, if entered into or executed by a person not being a body corporate, would not be required to be under seal, may be entered into or executed without seal on behalf of the Authority by the Secretary or any other person generally or specifically authorised by the Board in that behalf.
(4) Any document purporting to be a document under the seal of the Authority shall be received in evidence and shall be deemed to be so executed or issued, as the case may be, without further proof, unless the contrary is proved.
2. Tenure of office and vacancy
(1) Subject to the other provisions of this Act, a member of the Board shall hold office for a period of three years from the date of appointment and shall be eligible for re-appointment for one further term of three years.
(2) The office of the member shall become vacant—
(a) upon the member's death;
(b) if the member is absent without reasonable excuse from three consecutive meeting of the Board of which the member has had notice;
(c) on ceasing to be a representative of the organisation which nominated the member;
(d) if the member becomes mentally or physically incapable of performing the duties of a member of the Board;
(e) if the member is declared bankrupt;
(f) if the member is convicted of an offence involving fraud or dishonesty; or
(g) if the member is convicted of an offence against any other written law and is sentenced to a term of imprisonment of not less than six months without the option of a fine.
(3) On the expiration of the period for which a member is appointed the member shall continue to hold office until a successor has been appointed but in no case shall the further period exceed three months.
3. Filling of casual vacancy
Whenever the office of a member becomes vacant before the expiry of the term of office, the Minister may appoint another member in place of the member who vacates office but that member shall hold office only for the unexpired part of the term.
4. Proceedings of Board
(1) Subject to the other provisions of this Act, the Board may regulate its own procedure.
(2) The Board shall meet for the transaction of business at least every three months at such places and times as the Chairperson may determine.
(3) The Chairperson may, upon giving notice of not less than fourteen days, call a meeting of the Board and shall call a special meeting to be held within fourteen days of receipt of a written request to the Chairperson by at least five members of the Board.
(4) If the urgency of any particular matter does not permit the giving of such notice as is required under sub-section (3), a special meeting may be called by the Chairperson, upon giving a shorter notice.
(5) Five members of the Board shall form a quorum at any meeting of the Board.
(6) There shall preside at any meeting of the Board—
(a) the Chairperson;
(b) in the absence of the Chairperson, the Vice-Chairperson; or
(c) in the absence of the Chairperson and the Vice-Chairperson such member as the members present may elect for the purpose of that meeting.
(7) A decision of the Board on any question shall be by a majority of the members present and voting at the meeting and in the event of an equality of votes, the person presiding at the meeting shall have a casting vote in addition to the deliberative vote.
(8) The Board may invite any person, whose presence is in its opinion desirable, to attend and to participate in the deliberations of the meeting of the Board but such person shall have no vote.
(9) The validity of any proceedings, act or decision of the Board shall not be affected by any vacancy in the membership of the Board or by any defect in the appointment of any member or by reason that any person not entitled to do so took part in the proceedings.
5. Committees of Board
(1) The Board may, for the purpose of performing its functions under this Act, constitute such committees as it considers necessary and may delegate to any committee such of its functions as it considers fit
(2) The Board may appoint as members of a committee, persons who are, or are not, members of the Board, except that at least one member of a committee shall be a member of the Board.
(3) A person serving as a member of a committee shall hold office for such period as the Board may determine.
(4) Subject to any specific or general directions of the Board, a committee may regulate its own procedure.
6. Allowances of members
The members of the Board or any committee shall be paid such allowance as the Board may, with the approval of the Minister, determine.
7. Disclosure of interest
(1) If a member or person is present at a meeting of the Board or any committee of the Board at which any matter is the subject of consideration and in which matter the member or person or the member or person's spouse is directly or indirectly interested in a private capacity, the member or person shall as soon as is practicable after the commencement of the meeting, declare such interest and shall not, unless the Board or the committee otherwise directs, take part in any consideration or discussion of, or vote on, any question touching that matter.
(2) A declaration of interest made under sub-section (1) shall be recorded in the minutes of the meeting at which it is made.
8. Prohibition of publication or disclosure
(1) A person shall not without the consent in writing given by, or on behalf of, the Board, publish or disclose to any person other than in the course of duties, the contents of any document, communication, or information which relates to, and which has come to the person's knowledge in the course of the person's duties under this Act.
(2) Any person who knowingly contravenes the provisions of sub-section (1) commits an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding three months, or to both.
9. Deputy Registrars, Secretary and other staff
(1) The Board shall appoint—
(a) a Deputy Registrar who shall be responsible for insurance; and
(b) a Deputy Registrar who shall be responsible for pensions.
(2) A person shall not be appointed as Deputy Registrar unless the person has qualifications and experience in actuarial analysis, business management, law or accounting.
(3) The Deputy Registrar referred to in sub-paragraph (2) shall—
(a) assist the Registrar in the performamnce of the Registrar's duties under this Act; and
(b) discharge the functions of the Registrar if the Registrar is absent or is for any reason unable to discharge the functions of the Registrar's office.
(4) The Board shall appoint a Secretary and such other staff of the Authority as it considers necessary for the performance of its functions under this Act.
(5) The Board shall, with the approval of the Minister, determine the terms and conditions of service of the Deputy Registrars, Secretary and staff of the Authority.
PART II
FINANCIAL PROVISIONS
10. Funds of Authority
(1) The funds of the Authority shall consist of such money as may—
(a) be appropriated by Parliament for the purposes of the Authority;
(b) be paid to the Authority by way of loans, grants or donations;
(c) be paid to the Authority from a levy which may be imposed on the net assets of pension funds or insurance premiums paid to insurers and re-insurers; and
(d) vest in or accrue to the Authority.
(2) The Authority may—
(a) accept moneys by way of grants or donations from any source in Zambia; and
(b) subject to the approval of the Minister, raise by way of loans or otherwise, such moneys as it may require for the discharge of its functions.
(3) There shall be paid from the funds of the Authority—
(a) the salaries, allowances, loans, gratuities and pensions of staff of the Authority and other payments for the recruitment and retention of staff;
(b) such reasonable travelling and subsistence allowances for members or members of any committee of the Board when engaged on the business of the Board at such rates as the Board may, with the approval of the Minister, determine; and
(c) any other expenses incurred by the Board in the performance of the Authority's functions.
11. Investment of funds
The Board may, with the approval of the Minister, invest in such manner as it considers necessary any of the Authority's funds which it does not immediately require for the performance of the Authority's functions.
12. Financial year
The financial year of the Authority shall be the period of twelve months ending on 31st December in each year.
13. Accounts
(1) The Board shall cause to be kept proper books of the accounts and other records relating to the Authority's accounts.
(2) The accounts of the Authority shall be audited annually by independent auditors appointed by the Board subject to the approval of the Minister.
(3) The Auditor's fees shall be paid by the Authority.
14. Annual report
(1) As soon as is practicable, but not later than one hundred and eighty days after the end of the financial year, the Board shall submit to the Minister a report concerning its activities during such financial year.
(2) The report referred to in subparagraph (1) shall include information on the financial affairs of the Authority and there shall be appended to the report—
(a) an audited balance sheet;
(b) an audited statement of income and expenditure;
(c) an audited statement of income and expenditure of the Fidelity Fund; and
(d) such other information as the Minister may require
(4) The Minister shall, not later than seven days after the first sitting of the National Assembly next after receipt of the report referred to in sub-section (1), lay it before the National Assembly.
[Sch ins by s 36 of Act 27 of 2005.]
{/mprestriction}