This note is not part of the order, but is intended to indicate its general effect.
This order, which is made pursuant to section 10A of the National Provident Fund Restructuring Act 1990, approves a number of amendments to the proposal for the restructuring of the National Provident Fund. The amendments either correct errors in the proposal or are of a technical nature.
The proposal for the restructuring of the National Provident Fund was approved by the National Provident Fund (Approval of Restructuring Proposal) Order 1991.
Section 10A(1) of the Act empowers the Governor-General, on the recommendation of the Minister of Finance, by Order in Council, to approve any amendment to the proposal after the transfer day.
The term transfer day is defined in the Act as being 1 April 1991 and was the day on which, by virtue of the Act, the property held by the National Provident Fund Board under the National Provident Fund Act 1950 vested in the Board as the Board of Trustees of the National Provident Fund in accordance with the proposal.
Section 10A(2) provides that the Minister of Finance shall not recommend the making of an order approving any amendment to the proposal unless—
Every amendment approved under section 10A of the Act is deemed to have effect on and from the transfer day and the Act applies to the proposal as so amended accordingly.
The amendment to paragraph 3.1.2(b)(iv) of Schedule 1 of the proposal makes provision for valuing liabilities to pay benefits under the DBP Annuitants Scheme to persons retiring on account of ill health.
The new paragraph 3.2 of Schedule 1 relates to the valuation of Existing Investment Arrangements and requires the value to be based on the value of the total liability as determined by the Board in the balance sheet of the Fund as at 31 March 1991.
The first amendment to Schedule 2 corrects an error in the name of a company referred to in that schedule.
The second amendment ensures that the proposal is consistent with the practice of the Board in treating contributions due but not received as assets of the relevant scheme.
The third amendment relates to the cash component of the Property Unit Fund. The proposal provided for a cash component of up to 10% of the market value of the Unit Fund. The amount allocated exceeded this proportion on the basis of property values shown in the Board's financial statements as at 31 March 1991. The cash component is accordingly increased from 10% to 11%.
The omission of the proviso to paragraph 1 of Schedule 3 takes account of the fact that the amount that would have been allocated to existing schemes under that proviso had already been distributed before the transfer day.
The amendment to paragraph 2(c)(ii) of Schedule 3 relates to the new paragraph 3.2 of Schedule 1 and is consequential.
The addition of a further proviso to paragraph 2 of Schedule 3 takes account of the fact that the amount to be allocated to certain schemes under the proviso is limited by agreements between the Crown and the Board.
The insertion in Schedule 4 of a new paragraph 2.1.1A relates to the Board's practice of treating contributions due but not received as assets of the relevant scheme.