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Vanuatu National Provident Fund (Amendment) Act No 15 of 2000

Assent: 5 May 2000
Commencement: 1 January 2000

REPUBLIC OF VANUATU

VANUATU NATIONAL PROVIDENT FUND
(AMENDMENT) ACT

NO. 15 OF 2000

Arrangement of Sections

1. Amendment of section 16A
2. Amendment of section 16E
3. Repeal of section 17 and substitution of new section
4. Amendment of section 30
5. Commencement.

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REPUBLIC OF VANUATU

VANUATU NATIONAL PROVIDENT FUND
(AMENDMENT) ACT

NO. 15 OF 2000

An Act to amend the Vanuatu National Provident Fund Act [CAP. 189] ("the Principal Act").

BE IT ENACTED by the President and Parliament as follows:

AMENDMENT OF SECTION 16A

1. Section 16A of the Principal Act inserted by the Vanuatu National Provident Fund (Amendment) Act No. 23 of 1998 is amended by renumbering that section 16AB.

AMENDMENT OF SECTION 16E

2. Section 16E of the Principal Act is amended by deleting "one half" from subsection (1) and substituting "an amount determined by the Board not exceeding 20 percent.".

REPEAL OF SECTION 17 AND SUBSTITUTION OF NEW SECTION

3. Section 17 of the Principal Act is repealed and the following section is substituted:

"RATE OF INTEREST PAYABLE BY THE FUND

17. (1) Subject to subsections (3) and (4), the Board must, as soon as practicable after the start of each financial year, declare:

(a) an interim rate of interest for that financial year; and

(b) a rate of interest for the previous financial year.

(2) The Board must have regard to the following in declaring a rate of interest under paragraph (1)(a) or (b):

(a) any written recommendations of the General Manager; and

(b) the actual and expected income of the Fund after payment of expenses for any financial year; and

(c) the need for the Fund to maintain investment reserves; and

(d) the costs of administering the Fund.

(3) The Board must not declare a rate of interest under paragraph (1)(a) or (b) that exceeds 3 per cent per annum unless the Board is satisfied that the Fund can meet all payments required to be made under this Act.

(4) The Board must not declare a rate of interest under paragraph (1)(a) or (b) that exceeds 3 per cent per annum if any sums advanced by the Government under section 18 have not been repaid.

(5) To avoid doubt:

(a) the Board may declare a rate of interest under paragraph (1)(b) for the financial year ending on 31 December 1999 (the "1999 year"); and

(b) despite the provisions of paragraph 30(2)(b) as in force on 31 December 1999, the rate so declared is to be used for the purposes of paragraph 30(2)(b) for the 1999 year (other than in relation to amounts being withdrawn from the Fund by a member in the 1999 year).".

AMENDMENT TO SECTION 30

4. Section 30 of the Principal Act is amended by:

(a) deleting paragraph (2)(b) and substituting the following paragraph:

"(b) at the end of each financial year, interest at the rate declared by the Board under paragraph 17(1)(b) in respect of that financial year on the amount standing to the member's credit in the Fund at the commencement of that financial year.";

(b) adding at the end the following subsections:

"(3) If in a particular year ("the withdrawal year") a member withdraws from the Fund an amount standing to his or her credit:

(a) interest is payable on the amount in the Fund standing to the credit of the member at the end of each month of the withdrawal year prior to the month in which the withdrawal is made; and

(b) the rate of interest to be used in calculating the interest that is payable under paragraph (a) is the monthly equivalent of the interim rate declared by the Board under paragraph 17(1)(a) for the withdrawal year.

(4) If a member applied to withdraw from the Fund an amount standing to his or her credit in 1998 while the state of emergency declared under Article 69 of the Constitution was in force:

(a) interest is payable on the amount withdrawn only for the months in 1998 preceding the month in which the amount was paid to the member; and

(b) the rate of interest to be used in calculating the interest that is payable under paragraph (a) is the monthly equivalent of an annual rate of 3 per cent.

(5) Subsection (4) applies despite any other provision of this Act, including any provision that was in force prior to the commencement of this subsection.".

COMMENCEMENT

5. This Act commences on 1 January 2000.

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