STATUTORY AND LOCAL AUTHORITIES SUPERANNUATION FUND ACT 1977

Statutory and Local Authorities Superannuation Fund LAWS OF MALAYSIA REPRINT Act 185 STATUTORY AND LOCAL AUTHORITIES SUPERANNUATION FUND ACT 1977 Incorporating all amendments up to 1 January 2006 PUBLISHED BY THE COMMISSIONER OF LAW REVISION, MALAYSIA UNDER THE AUTHORITY OF THE REVISION OF LAWS ACT 1968 IN COLLABORATION WITH PERCETAKAN NASIONAL MALAYSIA BHD 2006 1 2 STATUTORY AND LOCAL AUTHORITIES SUPERANNUATION FUND ACT 1977 Date of Royal Assent ... ... ... Date of publication in the Gazette ... … ... 26 May 1977 … ... 9 June 1977 PREVIOUS REPRINT First Reprint ... ... ... ... ... 2001 3 LAWS OF MALAYSIA Act 185 STATUTORY AND LOCAL AUTHORITIES SUPERANNUATION FUND ACT 1977 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and application 2. Interpretation PART II (Deleted) 3–5. (Deleted) PART III (Deleted) 6–10. (Deleted) PART IV SUPERANNUATION BENEFITS FOR PENSIONABLE EMPLOYEES 11. Pension, etc., not of right 11 A. Pensions, etc., charged on the Consolidated Fund 12. Cases in which pensions, etc., may be granted 13. Retirement in the public interest 14. Emplacement on the pensionable establishment 15. Pension contribution 4 Laws of Malaysia ACT 185 Section 16. Reckonable past service 17. Option to pensionable employees on retirement 18. Maximum pension from service 19. Rate of pension 20. Rate of gratuity 21. Pension, etc., not to be assignable 22. Pension, etc., to cease on bankruptcy 23. Pension, etc., to cease on conviction 24. Pension, etc., may cease on accepting employment in certain companies or in engaging in certain occupations for gain 25. Derivative pension or gratuity where an employee dies in service or after retirement PART V GENERAL 26. Compulsory retirement 27. (Deleted) 28. Power to make regulations 29. (Deleted) 30. Winding up of fund of pension scheme 30 A. Winding up of the Fund established under the Act 31. Previous actions FIRST SCHEDULE—(Deleted) SECOND SCHEDULE Statutory and Local Authorities Superannuation Fund LAWS OF MALAYSIA 5 Act 185 STATUTORY AND LOCAL AUTHORITIES SUPERANNUATION FUND ACT 1977 An Act for the grant of superannuation benefits for employees of statutory and local authorities and for matters connected therewith. [1 May 1969] BE IT ENACTED by the Seri Paduka Baginda Yang di-Pertuan Agong with the advice and consent of the Dewan Negara and Dewan Rakyat in Parliament assembled, and by the authority of the same, as follows: PART I PRELIMINARY Short title and application 1. (1) This Act may be cited as the Statutory and Local Authorities Superannuation Fund Act 1977. (2) This Act shall apply throughout Malaysia. Interpretation 2. In this Act, unless the context otherwise requires— “appropriate authority” means the pensions authority or management of a statutory or local authority; “employee” means a person in the employment of a statutory or local authority and who by virtue of his option is bound by the new scheme or who is appointed under the new scheme; “employer” means a statutory or local authority; 6 Laws of Malaysia ACT 185 “last drawn salary” means the last drawn monthly salary in accordance with the salary scales of the new scheme; “Minister” means the Minister charged with responsibility for pensions; “new scheme” means the revision of salaries and terms and conditions of service of employees in the statutory and local authorities pursuant to the recommendations of the Royal Commission appointed by the Yang di-Pertuan Agong [P.U.(B) 202/1971]; “pensionable employee” means an employee who has been emplaced on the pensionable establishment or deemed to have been so emplaced; “pensions authority” means the Director General of Public Services or any officer authorized by him in writing to act on his behalf; “salary” means a monthly salary including any pensionable allowance payable in accordance with the salary scales of the new scheme; “service” means service in a civil capacity under the Government, any State Government, or in any statutory or local authority; “statutory or local authority” means a statutory or local authority within the purview of the new scheme; “superannuation benefits” means an award or grant which is payable under this Act. PART II (Deleted by Act A496) 3–5. (Deleted by Act A496). PART III (Deleted by Act A496) 6–10. (Deleted by Act A496). Statutory and Local Authorities Superannuation Fund 7 PART IV SUPERANNUATION BENEFITS FOR PENSIONABLE EMPLOYEES Pension, etc., not of right 11. (1) No employee shall have any right to compensation for past services or to any pension, gratuity or other award under this Part. (2) Where it is established to the satisfaction of the Minister by an appropriate authority, that an employee has been guilty of negligence, irregularity or misconduct, it shall be lawful for the Minister to reduce or withhold the pension, gratuity or other award for which such employee would be eligible but for this section. Pensions, etc., charged on the Consolidated Fund 11A. All pensions, gratuities and other benefits granted under the Act shall be charged on the Consolidated Fund. Cases in which pensions, etc., may be granted 12. No pension, gratuity or other award shall be granted under this Part to an employee until the employee has retired from service in a statutory or local authority— (a) on or after attaining the age of *fifty-five years; (b) on or after attaining the age of *fifty years in the case of a male employee, or forty-five years in the case of a female employee and an employee of the Fire Services holding the rank of Sub-Officer and below, with the prior consent of the appropriate authority; (c) on medical evidence acceptable to the appropriate authority that he is incapable of discharging the duties of his office, by reason of infirmity of mind or body likely to be permanent; (d) on the abolition of his office; (e) on the termination of his employment in the public interest; *NOTE—The compulsory age of retirement as provided in the Statutory and Local Authorities Pensions Act 1980 [Act 239] has been amended to “fifty-six”–see Statutory and Local Authorities Pension (Amendment) Act 2001 [Act A1125]. 8 Laws of Malaysia ACT 185 (f) on compulsory retirement for the purpose of facilitating improvement in the organization of the statutory or local authority to which he belongs by which greater efficiency or economy may be effected; or (g) on the ground of national interest at the instance of the Government. Retirement in the public interest 13. Where an employee’s services are terminated on the ground that, having regard to the conditions of the service, the usefulness of the employee thereto and all the other circumstances of the case, such termination is desirable in the public interest, and a pension, gratuity or other award cannot otherwise be granted to him under this Act, the Minister may, if he thinks fit, grant such pension, gratuity or other award as he thinks just and proper, but in no case exceeding the amount for which the employee would be eligible if he had retired from the service in the circumstances described in paragraph 12(c). Emplacement on the pensionable establishment 14. (1) A permanent employee shall be eligible for emplacement on the pensionable establishment on completion of not less than ten years’ service provided that the following periods shall not be taken into account except with the approval of the pensions authority— (a) any past service broken as a result of voluntary resignation; and (b) any past service in the Government, any State Government or any statutory or local authority which has been superannuated. (2) For the purpose of subsection (1), the following periods of service shall not be taken into account— (a) any period of leave without pay and periods of training for which only allowances were paid; and (b) any period of past service broken as a result of termination of service on disciplinary grounds or dismissal. Statutory and Local Authorities Superannuation Fund 9 Pension contribution 15. (1) Upon an employee being emplaced on the pensionable establishment, his employer shall make monthly contributions to the Consolidated Fund at the appropriate rate set out in the Second Schedule. (2) The Minister may, with the concurrence of the Minister of Finance, amend the rates in the Second Schedule by order. Reckonable past service 16. (1) An employee who is pensionable shall be eligible to have his past service in the Government, any State Government or any statutory or local authority reckoned as service for pension purposes provided that the following periods may not be taken into account except with the approval of the pensions authority— (a) any past service broken as a result of voluntary resignation; and (b) any past service in the Government, any State Government or any statutory or local authority which has been superannuated. (2) For the purpose of subsection (1), the following periods shall not be reckoned for pension purposes— (a) any period of leave without pay and periods of training for which only allowances were paid; and (b) any period of past service broken as a result of termination of service on disciplinary grounds or dismissal. (3) In the case of an employee appointed to another statutory or local authority under the new scheme, his past service prior to the date of appointment shall not be taken into account unless a written approval for his release from his former employer had first been sought and obtained. 10 Laws of Malaysia ACT 185 Option to pensionable employees on retirement 17. A pensionable employee who was a contributor to the Employees Provident Fund or any other provident fund established by any statutory or local authority may on retirement either— (a) accept the full pension and gratuity or gratuity for which he is eligible provided that payment is made to the Fund of an amount equivalent to the contributions with interest which the Government or any State Government or employer made to the Employees Provident Fund or other provident fund established by the statutory or local authority on his behalf during any period of reckonable past service as in section 16; or (b) forgo that portion of pension and gratuity or gratuity that would otherwise have accrued in respect of service during which he was a contributor to the Employees Provident Fund or other provident fund established by the statutory or local authority and to retain his provident fund credit instead. Maximum pension from service 18. (1) A pension granted to an employee under this Part shall not exceed one-half of his last drawn salary. (2) For the purpose of subsection (1), an allowance granted in respect of injury or disease shall not be taken into account but where the employee is granted such an allowance the amount thereof together with the amount of his pension shall not exceed two-thirds of his last drawn salary. Rate of pension 19. A pensionable employee who retires under section 12 after completion of not less than ten years’ service shall be eligible for a pension calculated at the rate of one-six-hundredth of his last drawn salary for each completed month of reckonable service. Rate of gratuity 20. A pensionable employee who retires under section 12 shall be eligible for a gratuity calculated at the rate of one-twentieth of his last drawn salary for each completed month of reckonable service. Statutory and Local Authorities Superannuation Fund 11 Pension, etc., not to be assignable 21. A pension, gratuity or other award granted under this Part shall not be assignable or transferable or liable to be attached, sequestered or levied upon for or in respect of any debt or claim except for the purpose of satisfying— (a) a debt due to the Government, any State Government or any statutory or local authority; or (b) an order from a court for the payment of periodical sums of money towards the maintenance of the wi