RETIREMENT FUND ACT 2007

LAWS OF MALAYSIA ONLINE VERSION OF UPDATED TEXT OF REPRINT Act 662 RETIREMENT FUND ACT 2007 As at 1 December 2015 2 RETIREMENT FUND ACT 2007 Date of Royal Assent … … … … … 12 February 2007 Date of publication in the Gazette … … … 13 February 2007 Latest amendment made by Act A1496 which came into operation on … … … … … 21 October 2015 PREVIOUS REPRINTS First Reprint … … … 2012 3 LAWS OF MALAYSIA Act 662 RETIREMENT FUND ACT 2007 ARRANGEMENT OF SECTIONS PART I PRELIMINARY Section 1. Short title and commencement 2. Interpretation PART II THE RETIREMENT FUND (INCORPORATED) 3. Establishment of the Retirement Fund (Incorporated) 4. Functions and powers of the Retirement Fund (Incorporated) 4A. The Retirement Fund (Incorporated) may act as an agent of Government 5. Common seal 6. Board 7. Investment Panel 8. Committees 9. Chief Executive Officer 10. Appointment of officer, servant, attorney, agent, etc. 11. Disclosure of interest 12. Power of the Board to make regulations PART III FINANCE 13. The Retirement Fund 4 Laws of Malaysia Section 14. Investment of the Fund 15. Unclaimed moneys 16. Statutory Bodies (Accounts and Annual Reports) Act 1980 17. Annual estimates PART IV GENERAL 18. Government’s guarantee of payments 19. Attempts and abetments punishable as offences 20. Liability of managers, etc. 21. Public servant and protection 21A. Obligation of secrecy 22. Power to amend Schedules PART V REPEAL, SAVINGS AND TRANSITIONAL 23. Repeal of the Pensions Trust Fund Act 1991 24. Continuance of laws, etc. 25. Transfer of powers, etc. 26. Transfer of land and property 27. Existing contracts 28. Continuance of civil and criminal proceedings 29. Transfer of Fund SCHEDULE Act 662 5 LAWS OF MALAYSIA Act 662 RETIREMENT FUND ACT 2007 An Act to incorporate the Retirement Fund (Incorporated), to establish the Retirement Fund and to provide for matters consequential and incidental thereto. [1 March 2007, P.U. (B) 62/2007] ENACTED by the Parliament of Malaysia as follows: PART I PRELIMINARY Short title and commencement 1. (1) This Act may be cited as the Retirement Fund Act 2007. (2) This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette. Interpretation 2. In this Act, unless the context otherwise requires— “debenture” includes debenture stock, bonds, notes and any other securities of a company or corporation whether or not constituting a charge on the assets of the company or corporation; “committee” means a committee established under section 8; 6 Laws of Malaysia Act 662 “Chief Executive Officer” means the Chief Executive Officer of the Retirement Fund (Incorporated) appointed under section 9; “Fund” means the Retirement Fund established under section 13; “Retirement Fund (Incorporated)” means the Retirement Fund (Incorporated) established under section 3; “Board” means the Board of the Retirement Fund (Incorporated); “Minister” means the Minister charged with the responsibility for finance; “Investment Panel” means the Investment Panel established under section 7; “remuneration” includes salary or wages, allowances, medical benefits, free or subsidised housing and other privileges capable of being valued in money; “securities” means— (a) debentures, stocks or bonds issued or proposed to be issued by any government (b) shares in or debentures of a body corporate; (c) unit trusts, exchange instruments, and traded fund or prescribed (d) any Islamic securities, and includes any right, option or interest ini respect thereof; “company” means a company incorporated under the Companies Act 1965 [Act 125], a trust company incorporated under the Trust Companies Act 1949 [Act 100] or any company incorporated under any written law; Retirement Fund 7 “financial year” means a period ending on the thirty-first day of December of each year; “appointed date” means the date of commencement of this Act appointed by the Minister under subsection 1(2). PART II THE RETIREMENT FUND (INCORPORATED) Establishment of the Retirement Fund (Incorporated) 3. (1) A body corporate by the name of Retirement Fund (Incorporated) is established. (2) The Retirement Fund (Incorporated) shall have perpetual succession and a common seal, and may sue and be sued in its corporate name. (3) Subject to and for the purposes of this Act, the Retirement Fund (Incorporated), upon such terms as it deems fit, may — (a) enter into contracts; (b) Bacquire, purchase, take, hold and enjoy movable and immovable property of every description; and (c) convey, assign, surrender, yield up, charge, mortgage, demise, reassign, transfer, or otherwise dispose of, or deal with, any movable or immovable property or any interest therein vested in the Retirement Fund (Incorporated). Functions and powers of the Retirement Fund (Incorporated) 4. (1) The functions of the Retirement Fund (Incorporated) are to administer and manage the Fund in accordance with and for the 8 Laws of Malaysia Act 662 purposes prescribed in this Act and to do such other things as it may be required or permitted to do under this Act. (2) The Retirement Fund (Incorporated) shall have the power to perform any or all of its functions, wholly or partly, in or outside Malaysia. (3) The Retirement Fund (Incorporated) with the approval of the Minister, may — (a) enter into any joint venture, undertaking or any other form of co-operation or arrangement for the sharing of profits or carry on its activities in association with, or otherwise, any public authority or government body carrying on or engaging in any such activities; (b) by order published in the Gazette, establish a corporation by such name as the Retirement Fund (Incorporated) may think fit, to carry out and manage any project, scheme or enterprise which has been planned or undertaken by the Retirement Fund (Incorporated) in furtherance of its functions under this Act, and the corporation may so do either by itself or by entering into partnership or any arrangement for sharing of profits, co-operation, joint venture or otherwise; and (c) incorporate or acquire a company or other corporation incorporated under the laws of a foreign jurisdiction, to carry on or engage in any activity approved or undertaken by the Retirement Fund (Incorporated). (4) The provisions of the First Schedule shall apply to a corporation established under paragraph (3)(b). The Retirement Fund (Incorporated) may act as an agent of Government 4A. (1) The Retirement Fund (Incorporated) may act as an agent of the Government of Malaysia for the purpose of paying any pension, Retirement Fund 9 gratuity or other benefit granted under any written law from the Consolidated Fund in such manner as may be agreed between the Government of Malaysia and the Retirement Fund (Incorporated). (2) The Retirement Fund (Incorporated) may be paid by the Government of Malaysia for services rendered by it as an agent of the Government of Malaysia under subsection (1). Common seal 5. (1) The common seal of the Retirement Fund (Incorporated) shall bear a device as the Board may approve and the common seal may from time to time be broken, changed, altered and made anew as the Board thinks fit. (2) The common seal shall be kept in the custody of the Chief Executive Officer and shall be authenticated by either the Chief Executive Officer or by any officer duly authorized by the Board in writing. (3) All deeds, documents and other instruments purporting to be sealed with the common seal and authenticated in accordance with subsection (2) shall, until the contrary is proved, be deemed to have been validly executed. (4) Any deed, document or instrument which, if executed by a person not being a body corporate, is not required to be under seal, may in like manner be executed by a member of the Retirement Fund (Incorporated) or any officer or servant of the Retirement Fund (Incorporated) authorized on that behalf. (5) The common seal of the Retirement Fund (Incorporated) shall be officially and judicially noticed. 10 Laws of Malaysia Act 662 Board 6. (1) The Retirement Fund (Incorporated) shall have a board who shall be responsible for the administration and management of the Retirement Fund (Incorporated). (2) Notwithstanding subsection (1), all matters pertaining to the investment of the Fund shall, subject to subsection 7(4), be dealt with by the Investment Panel. (3) The Board shall have powers to perform its duties as are given or imposed by this Act and do all acts which may be exercised or done by the Retirement Fund (Incorporated). (4) The Board shall consist of the following members who shall be appointed by the Minister: (a) a Chairman who shall be the Secretary General of the Ministry of Finance; (b) a representative from the Central Bank of Malaysia; (c) a representative from the Ministry of Finance; (d) the Chief Executive Officer who shall be an ex-officio member; (e) three representatives of the Government of Malaysia; (f) three other persons from the private sector with experience and expertise in business, investment, banking or finance; and (g) a person who, in the opinion of the Minister, shall fairly represent the contributories to the Fund other than representatives of the Government of Malaysia. (5) The Board may — (a) appoint attorneys or agents and technical advisers including actuaries, advocates and solicitors, bankers, fund managers, stockbrokers, surveyors, valuers or such other experts or professionals to transact any business or Retirement Fund 11 to do any act required to be transacted or done in the execution of its functions or for the better carrying into effect the purposes of this Act; and (b) pay from the Fund all charges and expenses so incurred. (6) On the request of the Investment Panel, the Board shall appoint and pay such persons referred to in subsection (5), in or outside Malaysia, as the Investment Panel may require for the purposes of carrying out its duties and functions under this Act. (7) The Minister may issue general guidelines consistent with the provisions of this Act with respect to the exercise of the Board’s functions and the Board shall give effect to all guidelines issued under this section. (8) The provisions of the Second Schedule shall apply to members of the Board. Investment Panel 7. (1) An Investment Panel which shall be responsible for matters pertaining to the investment of the Fund is established. (2) The Investment Panel shall consist of the following members who shall be appointed by the Minister: (a) Chairman who shall be the Chairman of the Board or such other person as may be appointed by the Minister; (b) (Delected by A1496); (c) a representative from the Ministry of Finance; (d) the Chief Executive Officer who shall be the secretary; and 12 Laws of Malaysia Act 662 (e) four persons from the public or private sector with experience and expertise in business, investment, banking or finance. (3) The Investment Panel may, with the prior approval of the Minister, delegate to its Chairman any of the powers set out in subsection 14(1), for the purposes of carrying out its functions in cases of emergency, as may be determined by the Board. The Chairman shall exercise such powers in accordance with the directions of the Investment Panel. (4) The Investment Panel shall be subject to such directions as to general policy that may be issued by the Board and approved by the Minister from time to time. (5) The Investment Panel shall report its activities to the Board in such form and manner as the Board may determine. (6) The provisions of the Second Schedule shall apply to members of the Investment Panel. Committees 8. (1) The Board may establish such committees to assist it in the performance of its functions under this Act. The Board may determine the chairman, number of members and the terms of reference of each committee so establi