Public Utilities Act
Public Utilities Board (Provident Fund) Rules
REVISED EDITION 1990
(25th March 1992)
[1st January 1964]
2. In these Rules —
“Committee” means the Committee of Management constituted under rule 36;
“contribution” means the contribution payable by a member under rule 7;
“donation” means the donation payable by the Board under rule 9;
“employee’s statutory contribution” means any sum or sums which the employer is entitled to deduct from the salary of the employee under the Central Provident Fund Act [Cap. 36];
“employer’s statutory donation” means any sum or sums which the Board is bound to pay on behalf of any employee under the Central Provident Fund Act;
“Fund” means the Public Utilities Board Provident Fund established by these Rules;
“member” means a person who is for the time being a member of the Fund during his service as an employee of the Board;
“salary” means the substantive basic salary per month of a member;
“service” means service with the Board and, while actually or deemed to be in receipt of salary, includes approved leave of absence;
“year” means the year coinciding with the Board’s financial year.
3. The Public Utilities Board Provident Fund is hereby established in accordance with section 31(1) of the Act.
4. The objects of the formation and maintenance of the Fund shall be the collection, investment and accumulation of moneys in accordance with these Rules and the making of provisions for the future benefit of the members or their dependents upon their retirement from or the termination of their service with the Board in the manner hereinafter provided.
5. Every employee of the Board, shall, except the following, be a member of the Fund and be subject in all respects to these Rules:
an employee who is above the age of 50 years when he enters the service of the Board;
a daily-rated employee;
an employee employed in a temporary post;
an employee on a contract allowing an addition by way of gratuity to his basic salary or an employee on an inclusive salary:
Provided that such an employee may be specifically authorised by the Board to join the Fund on his conversion to the normal salary scale and conditions of service;
an employee who is already a member of the Municipal Provident Fund established under the Municipal Ordinance (Cap. 133, 1936 Ed.); and
an employee on secondment from the Government or any other statutory body.
6. A member of the Fund shall cease to be a member forthwith when he attains the age of 55 years.
—(1) In respect of every month the Board shall be entitled to recover from the salary payable to each member employed by the Board —
the employee’s statutory contribution under the Central Provident Fund Act [Cap. 36] which shall be paid to the Central Provident Fund Board; and
the difference, if any, which when added to the employee’s statutory contribution is equal to 7½% of the salary of that member which sum shall be paid to the Treasurer of the Committee as his contribution to the Fund:
Provided that if the sum recovered under sub-paragraph (a) is in excess of 7½% of the salary of that member then no contribution shall be made to the Fund by the member:
And provided that where a member is in receipt of a salary of not more than $200 per month the member shall not be required to make any contribution to the Fund and no deduction shall be made under this rule by the Board.
(2) Where a member is in arrears in respect of his contribution to the Fund during his service with the Board prior to 29th May 1969 he may elect to pay the arrears, which shall be calculated in accordance with paragraph (1), to the Fund. The arrears shall be paid within a period not exceeding 30 months and shall be credited to a separate account of the member to be called the “Arrears of Contributions Account”. When the arrears have been fully paid, the amount shall be transferred, on 2nd January in the year following the date of the last payment of the arrears, to the member’s Contributions Account, and the Board shall pay into the Donations Account on the same date an amount calculated in accordance with rule 9, in respect of the period for which the member has paid such arrears under this paragraph.
8. If a member of the Fund is released from duty for a period in order to undertake a course of study or training under conditions which provide for his maintenance in lieu of the payment of the whole or part of his salary, or if special leave of absence without pay is granted to any member, the liability of the member to contribute and the corresponding liability of the Board to donate to the Fund shall, subject as hereinafter provided, be suspended during the period of such release from duty or special leave of absence, but if the member concerned shall desire to continue to contribute to the Fund during that period he shall in writing notify the Board of such desire, and if the Board agrees to the course proposed then and in such case the member shall during that period pay to the Treasurer monthly the sum the Board would have paid to the Treasurer under rule 7 on the salary (including increments) the member would have been receiving as a contribution by him to the Fund, and the amount so paid to the Treasurer shall be entered in the individual account of the member concerned in the portion entitled “Contributions Account”, and the Board may at its option pay to the Treasurer as a donation to the Fund the sum the Board would have paid to the Treasurer under rule 9 on the salary (including increments) the member would have been receiving and the same shall be entered in the individual account of the member concerned in the portion entitled “Donations Account”.
9. In respect of every month the Board shall donate towards the Fund in respect of each member the sum which when added to the employer’s statutory donation for the member is equal to 15% of the salary of the member.
10. The Fund shall be under the management and control of the Committee of Management constituted under rule 36.
—(1) The Board shall be the trustees of the Fund.
(2) The Treasurer shall pay all moneys received by him for the credit of the Fund into a separate account at a bank which has been approved by the Board. Such account shall be in the name of the trustees for “The Public Utilities Board Provident Fund”, and pending investment may keep the moneys on current account or on deposit.
—(1) Investments of the Fund shall be made in the name of the trustees of the Fund.
(2) The Committee shall invest the Fund in such securities as it considers fit:
Provided that not less than 15% of the Fund is at all times retained in the current or deposit account with the Bank and not less than 35% of the Fund is invested in securities for the time being authorised by the laws of Singapore for the investment of trust moneys, but the investment shall not conflict with the investment policy on pensions or provident fund as laid down from time to time by the Comptroller of Income Tax.
(3) The Committee may, subject to paragraph (2), in its discretion, from time to time and at any time, realise, vary or transfer any investment and may reinvest any moneys or any part of the moneys received as the result of any such operation.
(4) The Committee may, for purposes referred to in paragraphs (2) and (3), seek the advice of any person in determining the choice of securities proposed to be invested in by the Committee.
(5) All documents relating to investments of the Fund shall be executed on behalf of the Fund by the trustees.
—(1) All amounts received by way of interest on investments belonging to the Fund shall be carried to an Income Account.
(2) All amounts received by way of rents from the properties owned by or mortgaged to the Fund shall be carried to the Income Account, but there shall be deducted therefrom any payments made in respect of rates, insurance, repairs and any other expenses or outgoings made for the purpose of maintaining the properties in a rent earning condition, including any commission paid to a receiver appointed by the Committee as mortgagee of any property.
(3) Upon the purchase of any investments, a proportion of the purchase price equivalent to the interest or dividend payable in respect thereof for the period elapsed since the end of the last period in respect of which the interest or dividend thereon has been paid shall be debited to the Income Account.
(4) Upon the realisation of any investment a proportion of the proceeds shall be deducted equivalent to the interest or dividend payable in respect thereof for the period elapsed since the end of the last period in respect of which the interest or dividend thereon has been received and the amount deducted shall be credited to the Income Account.
—(1) At the end of each year the Income Account shall be closed and the amount standing to the credit of the Income Account on such date shall be transferred and credited by way of interest to the Contributions Account and the Donations Account of the members of the Fund, and to the Reserve Account, in proportion to the amounts actually standing to the credit of such accounts as on 1st January next preceding and the amount transferred from the Income Account shall thereupon be added to and become part of the principal standing to the credit of such accounts.
(2) The amount to be transferred from the Income Account for the credit of the aforesaid accounts shall be the percentage which the net income for the year yields on the aggregate amount standing to the credit of the Contributions Account and the Donations Account of all members, and the Reserve Account, as on 1st January next preceding, but fractions of less than % shall be discarded and the portion of the next income represented by such fraction shall be carried forward to the next yearly account:
Provided that the percentage to be credited to the accounts of members in each year shall not be less than 2½%:
And provided that the Committee may subject to the approval of the Minister for Finance decide on the percentage of interest if the percentage to be paid to members exceeds 2½% per annum.
(3) In the event of the amount transferred from the Income Account for the credit of the aforesaid accounts being insufficient to pay the required minimum interest of 2½% the deficiency shall be borne by the Board.
(4) When any member ceases to be a member of the Fund there shall be transferred from the Income Account to the account of the member an amount in respect of interest which shall be calculated from the date of the last closing of the Account to the date of his ceasing to be a member on the amount standing to his credit at the commencement of the year at the rate at which interest was transferred from the Income Account to the account of the member in the preceding year.
15. The expenses of managing and administering the Fund shall be borne by the Board:
Provided that any brokerage, commission, stamp duty or other expenses incidental to the buying and selling of investments or the collection of dividends or interest on investments held on behalf of the Fund shall be charged to the Fund.
16. Cheques drawn on the bank account kept by the Committee in accordance with rule 11 shall be signed by the Treasurer and countersigned by the chairman or deputy chairman of the Committee. Cheques, drafts or other negotiable instruments requiring endorsement may be endorsed by either the Treasurer, or in his absence, by a member of the Committee.
—(1) If in the exercise of its discretion the Committee considers such a course desirable or expedient it may in the month of January in any year cause the Fund to be valued as on 31st December next preceding.
(2) Any surplus ascertained as the result of any such valuation shall be allocated in proportion to the totals respectively appearing at the last-mentioned date in —
each member’s Contributions Account;
each member’s Donations Account; and
the Reserve Account,
and each of such totals shall be increased accordingly.
(3) If it so thinks fit, the Committee may make or cause to be made a valuation and apportionment similar to that provided for in paragraph (1) at any time when a member’s account has to be dealt with under rule 14(4) or at any other time.
(4) Every valuation and apportionment made pursuant to this rule shall be final and binding on the Board and on each and every member.
18. The Committee shall cause to be kept proper books of account for the Fund and proper records of investment of the Fund.
—(1) The Committee shall cause to be kept an individual account for each member and the credit side of the account shall be divided into two parts, one whereof shall be referred to as the “Contributions Account” and the other as the “Donations Account”.
(2) The Contributions Account shall show the contributions made by the member and the share of income apportioned thereto.
(3) The Donations Account shall show the proportion of the donations allocated to the account of the member and the share of income apportioned thereto.
(4) The fact that the donations and the income thereof shall in the manner aforesaid be entered in the Donations Account of each member shall not be evidence that the donations and income or any part thereof belong to the member concerned and shall not give rise to any claim thereto on behalf of the member until the same shall if at all become payable to the member in accordance with rule 32 and until such donations and income become payable to such member as aforesaid the same shall be and remain part of the Fund.
20. As soon as conveniently may be after the expiration of each year, the Committee shall cause to be prepared —
a balance-sheet giving particulars of the assets and liabilities of the Fund as at 31st December then last preceding and of the investments representing the Fund; and
an income and expenditure account of the Fund for the year ended on 31st December then last preceding giving particulars of the income derived from the investments of the Fund and of the expenditure and of the amount credited to the accounts of the members.
22. Every member shall be entitled to inspect at all reasonable times both the Contributions Account and the Donations Account pertaining to himself with the Fund.
23. In every year as soon as conveniently may be after the completion of the audit made pursuant to rule 21, the Treasurer shall by prepaid letter post forward to each member with notice of the annual general meeting of members to be convened in accordance with rule 24 a copy of the balance-sheet and of the income and expenditure account of the Fund.
—(1) In every year as soon as may be practicable after the completion of the audit made pursuant to rule 21, the Treasurer shall convene a general meeting (referred to in these Rules as the Annual Meeting) of the members to be held at a place to be selected by the Committee and the Treasurer shall give at least 14 days’ previous notice in writing of the meeting to every member.
(2) The Committee may convene a general meeting of members at any other time if it thinks fit to do so, and the Treasurer shall give to the members such notice in writing thereof as the Committee considers reasonable.
25. The business of the Annual Meeting shall be to receive and consider the balance-sheet for the previous financial year, the auditor’s report thereon, and the report of the chairman of the Committee, to elect Committee members in place of those retiring, and to transact any other business notice of which has been received by the Treasurer not less than 7 days before the Annual Meeting.
26. The chairman of the Committee if present shall be chairman of every Annual Meeting and general meeting and if he be absent the deputy chairman of the Committee shall take the chair. If both the chairman and the deputy chairman are absent, the members of the Committee present shall agree amongst themselves who shall take the chair.
27. All questions arising at any Annual Meeting or general meeting shall be decided by a majority of votes and in case of an equality of votes the chairman of the meeting shall have a casting vote.
—(1) At every Annual Meeting or general meeting every member present shall have one vote on every question arising.
(2) A quorum for a general meeting of the members shall be 100 members of the Fund.
(3) In the event of there being no quorum, the meeting shall be adjourned to the same day in the following week at a place and time to be appointed and should the number then present be insufficient to form a quorum, they shall nevertheless be deemed to have constituted a quorum for that meeting.
—(1) A member shall not have any claim upon the Fund beyond the payments provided for under these Rules.
(2) Any payment made under these Rules shall be subject to section 31(2) of the Act.
—(1) Any member may by completing the form set out in the Schedule appoint a nominee or nominees to receive all moneys payable out of the Fund on the death of the member.
(2) If at the time of the death of the member, the person nominated other than a widow is under the age of 21 years at the time of payment of the moneys payable out of the Fund, his portion of the amount payable shall be paid to the Public Trustee for the benefit of that person. The receipt of the Public Trustee shall be a discharge to the Board for such portion of the moneys payable out of the Fund on the death of the member as are payable to that person.
31. If any member becomes insane or mentally incapable of acting for himself and the insanity or incapacity is proved to the satisfaction of the Committee, the Committee, if satisfied of the urgency of the case, may authorise payments from time to time out of the money standing to the credit of the member in the Fund to any person who it thinks proper, and the receipt of that person shall be a good discharge of such payment.
—(1) If any member ceases to be in the employment of the Board by reason of the happening of any one of the following events, there shall, subject to rule 29(2), be paid to the member, or, in the case of his death, to his nominees, trustees or legal personal representatives, the amount standing to the credit of his account in respect of both the Contributions Account and the Donations Account, together with such interest as is calculated in accordance with rule 14(4):
retirement on attaining 55 years of age or optional retirement with the consent of the Board on or after attaining the age of 50 years;
resignation or retirement on account of incapacity for service by reason of illness;
retirement on account of reduction or alteration in the establishment or staff of the Board, or at the request of the Board on grounds other than misconduct, irregularity or negligence in which event the second proviso to paragraph (2) will apply.
(2) If a member ceases to be in the employment of the Board on the grounds of misconduct, irregularity or negligence, or on the happening of an event, which is not set out in paragraph (1), he shall, subject to rule 29(2), be entitled to be paid —
the amount standing to his credit in the Contributions Account; and
the amount standing to his credit in the Donations Account in the following proportions:
(i) where he has been a member for less than 5 years
(ii) where he has been a member for not less than 5 years, but less than 10 years
50% standing to the credit of the member in the Donations Account;
(iii) where he has been a member for not less than 10 years, but less than 15 years
75% standing to the credit of the member in the Donations Account; or
(iv) where he has been a member for not less than 15 years
100% standing to the credit of the member in the Donations Account:
Provided that the Committee may, in its discretion, with the approval of the Minister, pay to a member an amount from the Donations Account of that member in excess of the proportion set out in this paragraph:
And provided that if a member has not reached the normal retirement age of 55 years, he shall not be entitled to be paid in cash the amounts stated in sub-paragraphs (a) and (b), in which event the sums due to such member shall be —
retained in the Fund until his death or the attainment by him of the age of 55 years or his premature retirement through chronic disability or his departure from Singapore and Malaysia with the intention of taking up permanent residence elsewhere;
transferred to another approved pension or provident fund or the Central Provident Fund; or
converted into a paid-up life assurance policy maturing upon his attaining the age of 55 years or upon his prior death which policy shall be retained by the Committee until its maturity.
—(1) Subject to the conditions in paragraph (2), where a member elects to utilise his contributions towards a life or endowment assurance, the Committee may pay the annual premium on such life or endowment assurance from the amount standing to the credit of the member’s Contributions Account.
(2) The following shall be the conditions for the life or endowment assurance to be paid from the member’s Contributions Account:
every assurance policy shall be —
affected at a Singapore branch of a life assurance company approved by the Committee;
in the name of the trustees of the Fund and shall not be assigned by the Committee until maturity;
made payable to the trustees; and
effected on the life of a member;
the sum assured in the policy shall not exceed one year’s total salary and emoluments of the member concerned;
an annual premium shall not exceed the employee’s total contribution of the preceding year;
the period of the policy shall extend to not less than the date of retirement of the member and shall not be for less than 10 years; and
the Committee may impose such other conditions as it may think necessary.
—(1) A member may, subject to the approval of the Committee, assign to the trustees any existing policy of assurance which is free from any lien or charge, and the Committee shall then pay future premiums from the amount standing to the credit of the member’s Contributions Account.
—(1) Any moneys standing to the credit of an account of a member with the Fund which shall remain standing to such credit after payment to that member of the amount due or paid to him under rule 32(1) and (2) shall be transferred by the Committee to the credit of a separate account (referred to in these Rules as the Reserve Account).
(2) All income derived from the investment of moneys standing to the credit of the Reserve Account shall be credited to that account and dealt with in the same manner as the capital from which the income is derived.
(3) The Committee shall be at liberty to deal with the moneys in the Reserve Account in such manner as it thinks fit, including —
the payment of any amount to the dependent or dependents of a member; and
the transfer to the Donations Account of each member of an amount proportionately in the proportion which the total of such individual account bears to the total of the individual accounts to be credited.
—(1) The Committee shall consist of —
two persons appointed by the Board;
two persons elected by members of the Fund;
the chief executive officer; and
the Director of Finance of the Board.
(2) The Committee shall elect the two persons appointed by the Board as its chairman and deputy chairman.
(3) The Director of Finance of the Board shall be the Treasurer of the Committee.
—(1) The Committee may meet as often as it considers necessary but it shall in any case meet at least once in 3 months.
(2) The quorum at a Committee meeting shall be 4 members.
(3) All questions arising at a Committee meeting shall be decided by a majority of the members present and voting, and in case of an equality of votes the person presiding at the meeting shall have a second or casting vote.
(4) Minutes shall be kept of all proceedings and resolutions passed at meetings of the Committee.
(5) If a vacancy occurs in the membership of the Committee —
for any reason other than the due expiry of the term of a member elected by the members of the Fund under rule 36(1)(b), the Committee may co-opt a member of the Fund to fill the vacancy during the remainder of the term; and
for any reason other than the due expiry of the term of a member appointed by the Board under rule 36(1)(a), the Board may appoint one of its members to fill the vacancy during the remainder of the term.
—(1) No member of the Committee shall be liable for any depreciation of any part of the Fund or for any loss arising from the acts, negligence or default of any other member of the Committee or arising from the bankruptcy or any act of any person properly in possession of any part of the Fund or arising from the insufficiency of any security or arising from any other cause unless the same shall occur through his own fraudulent, dishonest or negligent act.
(2) Where the Committee considers it necessary it may seek the advice of the Board, or of any qualified person or firm and no member of the Committee shall be liable for any loss which may occur in acting on such advice or opinion.