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1. This Ordinance may be cited as the Public Service Provident Fund Ordinance.
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Establishment of the fund.
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2.
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(1) A fund to be known as the Public Service Provident Fund is hereby established for the grant of benefits, as hereinafter provided, to those non-pensionable employees of the Government whose posts or offices are specified or described in the Schedule.
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(2) A general account for the fund and a separate account for each contributor to the fund shall be opened and kept at the Treasury in such manner as the Deputy Secretary to the Treasury1 may direct.
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Control and management of the fund.
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3.
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(1) The control and management of the fund are
hereby vested in a board of management consisting of-
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(a) the Deputy Secretary to the Treasury ; [1]
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(b) the Solicitor-General;
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(c) two persons, each of whom is the head of a department of Government or the deputy or principal assistant to the head of such a department; and
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(d) one person who is a contributor to the fund.
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(2) The persons referred to in paragraphs (c) and (d) of subsection (1) shall be appointed to the board by the Minister of Finance.[3]
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(3) The Deputy Secretary to the Treasury[1] shall be the chairman of the board.
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Compulsory
contributions to the fund.
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4.
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(1) Subject to the provisions of section 8, every scheduled employee shall, until the termination of his service with the Government, pay, each month, as a compulsory contribution to the fund, an amount equivalent to one-twentieth of his monthly salary.
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(2) The compulsory contribution of a scheduled employee for any month shall, subject as hereinafter provided, be calculated on the full monthly salary of such employee notwithstanding that the amount received as salary for that month is less than the full monthly salary or that no amount whatever is received by way of salary for that month :
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Provided that, where a contributor is on half-salary or no salary for a period exceeding two months continuously, he may elect to contribute, in respect of that part of the period which exceeds two months, at the rate of one-twentieth of any salary which he receives.
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(3) The contribution required or authorized to be paid by a scheduled employee under the preceding provisions of this section shall be paid in rupees and shall be calculated in rupees on the salary payable to such employee when he is employed in Ceylon. Such contribution may be deducted from the salary of such employee by the Deputy Secretary to the Treasury[1] or by the Crown Agents in a case where such salary is paid by the Crown Agents ; and, when so deducted, shall be credited to the fund.
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(4) Where any deduction is made by the Crown Agents under subsection (3) from the salary of any scheduled employee, such employee shall be entitled to receive from the Crown Agents the equivalent in sterling of the balance of such salary calculated at the rate at which such employee is entitled to receive such salary in England.
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Voluntary-contributions to the fund.
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5. Subject as hereinafter provided and subject to such conditions as may be prescribed, a scheduled employee may, in addition to his compulsory contribution, pay as a voluntary contribution to the fund an amount not exceeding one-twentieth of his full monthly salary :
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Provided that the rate at which any such voluntary contribution is calculated shall not be varied except at half-yearly intervals.
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Modification of sections 2, 4 and 5 in certain cases.
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6. Notwithstanding anything in sections 2, 4 and 5, a person who becomes a scheduled employee on or after such date *[* 1st July, 1951.-Gazette No. 10,258 of 15th June, 1951] as may be specified by the Governor-General [3] for the purposes of this section by Order published in the Gazette, not being a date earlier than the 1st day of March, 1947, shall not be entitled to contribute to the fund or to receive any benefits therefrom unless the salary of such person is payable at a monthly rate.
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7.
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(1) At the close of each financial year, the general account of the fund shall be credited by the Deputy Secretary to the Treasury[1] with a sum equivalent to one and a half times the aggregate of the compulsory contributions made by all the contributors during that financial year; and the separate account of each contributor shall be provisionally credited with a sum equivalent to one and a half times the aggregate of the compulsory contributions made by him during that , financial year.
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(2) Each sum so credited to the separate account of a contributor shall be called a bonus.
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Premiums on life policies may be regarded as contributions to the fund.
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8.
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(1) Every contributor may, in lieu of the whole or any portion of the compulsory contribution under section 4, pay an equivalent sum towards a policy of assurance on his own life in the manner and subject to such conditions as may be prescribed by regulation.
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(2) Such payment shall be deemed to have been contributed to the fund for the purpose of calculating any bonus under section 7, but not for the purpose of the calculation or payment of interest under sections 11, 12 and 14.
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(3) No premium paid on or in respect of a policy of life assurance shall be deemed, under subsection (1), to be paid to the fund, if, at the time such premium is paid, the policy has been assigned or is subject to any hypothecation or charge whatsoever.
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(4) In this section, ” policy of life assurance ” means a policy issued to a contributor by an insurer approved by the board whereby the payment of a fixed sum is assured on the death of the contributor or on his attaining the age of fifty-five years or any higher age specified in the policy.
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Investment of moneys paid into the fund.
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9. Moneys paid into the fund shall, so far as practicable, be invested by the Deputy Secretary to the Treasury, [1] with the approval of the board, in the securities prescribed in section 20 of the Trusts Ordinance for the investment of trust property which consists of money.
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Cost of establishment to be met from Consolidated Fund.
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10. The cost of establishment and other expenses incidental to the management and administration of the fund (all hereinafter referred to as ” the cost of establishment “) shall, subject to the refund to the Consolidated Fund[1] referred to in section 11 (3), be met from the Consolidated Fund.[1]
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Examination of the accounts of
the fund and apportionment of profit or loss.
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11.
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(1) The board shall, as soon as may be after the thirtieth day of September in each year, cause an examination to be made of the general account of the fund as on that date and ascertain the profit made or loss incurred for the financial year ending on that date.
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(2) Where the examination referred to in subsection (1) discloses a loss for any financial year, the amount of such loss shall be debited by the board to the accounts of the contributors to the fund in proportion to the amounts standing to their credit in the fund at the close of that financial year.
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(3) Where the examination referred to in subsection (1) discloses a profit for any financial year, such profit shall be apportioned by the board, as far as may be, for the purposes hereinafter set out and in the order in which such purposes are respectively mentioned: –
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(a) the payment of interest to the accounts of contributors in proportion to the amounts standing to their credit in the fund at the close of that financial year up to a maximum of two and a half per centum of the amounts so standing to their credit;
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(b) the refund to public revenue of the cost of establishment for that financial year ;
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(c) the payment of interest to the accounts of the contributors in proportion to the amounts standing to their credit in the fund at the close of that financial year.
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The amounts apportioned under paragraphs (a) and (c) shall be sufficient to pay interest on the amounts to the credit of the contributors in the fund at integral, half or quarter rates per centum or any combination of such rates, but at no smaller fractional rate. Any amount of profit insufficient to provide interest at a quarter per centum shall be carried forward to the following financial year.
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12. Interest payable to the account of a contributor shall be credited separately on compulsory contributions, voluntary contributions and bonuses, and shall begin to accrue in respect of each sum contributed and each bonus on the first day of the month next following the date on which the contribution was made or the bonus credited. Such interest shall be calculated in each year to the thirtieth day of September and shall then be added to and become part of the principal and be deemed for the purposes of this Ordinance to be compulsory contribution, voluntary contribution or bonus, as the case may be.
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13.
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(1) On the death of a contributor or the termination of the contributor’s service in any scheduled post on any date in any financial year-
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(a) interest up to the end of the month previous to that date calculated at the rate at which interest was credited to the account of that contributor in respect of the last preceding financial year ; and
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(b) in the event of his death or termination of his service in any of the circumstances in which section 14 applies, bonuses for that financial year equal to one and a half times the compulsory contributions made by the contributor during that financial year,
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shall be credited to his account, which shall then be closed.
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(2) Notice of such closure shall thereupon be
given-
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(i) if the contributor is living, to the contributor ; or
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(ii) if the contributor is dead, to such person or persons mentioned in section 17 to whom it shall appear to the Deputy Secretary to the Treasury[1] that notice should properly be given ;
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and, in either case, to such other persons as shall or may, in the opinion of the Deputy Secretary to the Treasury,’ reasonably require such notice.
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Payment of benefits on death, transfer or termination of service.
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14. Subject to the provisions of this Ordinance, if a contributor is transferred from a scheduled post to any other post or office (not being a pensionable post or office) in the public service or dies while in the service of the Government or leaves the service in any of the following circumstances, that is to say :-
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(1) retirement on medical evidence to the satisfaction of the Governor-General,[3] or, where it is competent for the head of the department in which the contributor served to order his retirement, to the satisfaction of such head of department, that he is incapable by reason of some infirmity of mind or body of discharging the duties of his office;
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(2) satisfactory completion of contract;
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(3) abolition of office ;
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(4) retirement on account of age ;
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(5) determination of contract by, or with the consent of, the Government otherwise than by dismissal;
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(6) in the case of a female contributor, retirement with a view to, or in consequence of, marriage after not less than three years’ service (subject to the production of evidence of marriage within such period after retirement as may be prescribed),
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Provided that where the aggregate of the compulsory contributions, bonuses and interest thereon standing to his or her credit in the fund is less than the aggregate of-
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(a) the compulsory contributions paid by the contributor to the fund ;
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(b) the bonuses credited to the account of the contributor in the fund ; and
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(c) compound interest at two and a half per centum per annum on the compulsory contributions paid by the contributor to the fund and on the bonuses credited to his account in the fund,
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a sum equivalent to the difference between such aggregates shall be paid out of the Consolidated Fund [1] to the contributor or to such other person to whom by virtue of this Ordinance or otherwise payment may lawfully be made.
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Power to
modify paragraph (6) of section 14 in the case of female employees.
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15. The Minister of Finance1 may, by Order published in the Gazette, direct that in the case of a female contributor of any such class or description as may be specified in the Order the minimum service required by paragraph (6) of section 14 shall be five years’ service in lieu of the three years’ service specified in that paragraph, and in every such case the provisions of that paragraph shall apply accordingly.
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Payment of benefits on dismissal or discontinuance or termination of service in any circumstances other than those in which section 14 applies.
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16. Subject to the provisions of this Ordinance, if a contributor is dismissed, or discontinued on the ground of inefficiency or misconduct or leaves the service of the Government in any circumstances other than those in which section 14 applies-
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(a) the amount of his contributions to the fund and
interest thereon shall be paid to the contributor ;
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(b) all bonuses and interest thereon provisionally credited to the account of the contributor shall be credited to the Consolidated Fund.[1]
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Payment on death of contributor.
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17.
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(1) Subject to the provisions of this Ordinance, on the death of a contributor-
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(a) if the amount payable does not exceed two thousand five hundred rupees, the Deputy Secretary to the Treasury [1] shall pay such amount to the person or persons nominated for the purpose by the contributor in the manner prescribed, or, if no such nomination has been made, to the credit of the estate of the deceased contributor or, at the discretion of the Deputy Secretary to the Treasury[1] to the person appearing to the Deputy Secretary to the Treasury[1] to be entitled by law to receive such amount;
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(b) if the amount payable exceeds two thousand five hundred rupees, the Deputy Secretary to the Treasury [1] shall pay such amount to the credit of the estate of the deceased contributor :
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Provided that the Deputy Secretary to the Treasury[1] may make payments, not exceeding three hundred rupees in any one case, to meet the expenses of the funeral of the deceased or to give immediate relief to the widow or children or other dependants of the deceased, if in the opinion of the Deputy Secretary to the Treasury[1] such relief is required.
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(2) Any payment made by the Deputy Secretary to the Treasury[1] under this section shall be valid and effectual against any demand made upon the Government, the board or the Deputy Secretary to the Treasury[1] by any other person in respect of the amount payable in respect of that contributor.
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Bonuses, &c, to be a charge on Consolidated Fund.
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18.[1] All bonuses and other moneys authorized to be credited or paid from the Consolidated Fund by or under this Ordinance shall be charged upon the Consolidated Fund.
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Compulsory contributions, &c, not to be assigned or attached.
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19. Subject to the provisions of this Ordinance, no compulsory contribution, bonus, or interest on any such contribution or bonus shall be assignable or transferable or liable to be attached, sequestered or levied upon, in execution of any decree or order of any court, for or in respect of, any debt or claim whatsoever.
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Appointment of contributor to pensionable office under Government.
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20.
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(1) Where a contributor to the fund is appointed to a pensionable office in the public service and enters on the duties of such office-
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(a) the account of that contributor shall be closed on the day on which he enters on the duties of his new office ;
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(b) the aggregate amount of the bonuses credited by Government to the account of that contributor, together with the interest accrued on such bonuses shall be paid to Government out of the fund ;
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(c) the aggregate amount of the compulsory contributions and voluntary contributions, if any, made by that contributor to the fund together with interest accrued on such contributions shall be paid to that contributor out of the fund ; and
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(d) the period commencing on the day on which the contributor had become liable to contribute to the fund and ending on the day on which the account of the contributor is closed as herein before provided shall be deemed to be and reckoned as a period of service in a pensionable post for the purpose of the application of the Minutes on Pensions and the grant of benefits thereunder.
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(2) Where a contributor to the fund is appointed to a pensionable office in the public service and enters on the duties of such office, then, notwithstanding that his service as a scheduled employee is not continuous with his service in the pensionable office, the provisions of subsection (1) shall apply if, but only if-
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(a) his service as a scheduled employee is terminated by resignation made with the consent of the prescribed officer or authority given for the purpose of enabling him to accept the pensionable office ; and
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(b) the period intervening between the date of the termination of his service as a scheduled employee and the date of his entering on the duties of the pensionable office is not more than thirty-one days exclusive of any period during which he is actually being trained for such office :
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Provided, however, that in any such case the account of that contributor in the fund shall be closed on the day of the termination of his service as a scheduled employee.
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Benefit or qualification
which, under the Minutes on Pensions, has accrued to a contributor before he became a contributor.
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21. Where a contributor has, before the date on which he became a contributor, held any post or office, service in which has qualified or would qualify him for an award under the Minutes on Pensions, he may retain any benefit or qualification which may have accrued to him under such Minutes, and, accordingly-
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(a) in the event of his leaving the public service in any of the following circumstances, that is to
say-
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(i) retirement on account of age or on the ground of ill health ; or
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the following award may be granted to such contributor, namely, such award as might have been granted to him under such Minutes if he had retired from such service on the aforesaid date on the ground of ill health, or
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(ii) abolition of office,
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(b) in the event of his death while he is in such service, the following award under those Minutes may be granted to the person or persons to whom such award might have been granted under those Minutes, namely, such award as might have been granted under those Minutes to such person or persons if such contributor had died on the aforesaid date :
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Deductions on account of income tax.
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22. In the event of the fund being approved by the Commissioner of Income Tax under section 11 (1) (i) of the Income Tax Ordinance, the Deputy Secretary to the Treasury[1] may, before payment is made of moneys lying to the credit of a contributor’s account in the fund, make deductions on account of income tax from such moneys in accordance with the conditions prescribed by the Commissioner of Income Tax under the aforesaid section of that Ordinance. Any sum so deducted shall be paid to the Commissioner of Income Tax.
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Deduction of sums due to Government.
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23. Before payment is made of moneys lying to the credit of a contributor’s account in the fund, any sum or sums due from that contributor to the Government may be deducted from such moneys.
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24.
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(1) The Deputy Secretary to the Treasury[1] shall keep a separate account for the moneys of the fund. Such account shall be audited by the Auditor-General.
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(2) The board shall submit to the Minister of Finance[1] as soon as practicable after the close of each financial year a full statement showing the working of the fund and all claims thereon, and containing full particulars of all transactions connected with the working of the fund.
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Information to contributors.
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25. As soon as practicable after the close of each
financial year, the Deputy Secretary to the Treasury[1] shall inform each contributor of the total amount standing to his credit in the fund at that date.
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Power to amend and replace Schedule and consequences of such amendment and replacement.
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26.
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(1) The Secretary to the Treasury1 may, by Order published in the Gazette, amend or vary the Schedule, whether by the addition thereto or by the omission therefrom of any post or office, or otherwise in such manner as the Secretary to the Treasury[1] may deem fit, or from time to time replace the Schedule by a new Schedule incorporating all amendments and variations made under the preceding provisions of this subsection.
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(2) An Order under subsection (1) may contain such provision as the Secretary to the Treasury [1] may deem necessary or expedient to preserve existing rights and shall have effect accordingly.
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(3) An Order under subsection (1) may amend or vary the Schedule with effect from such date or dates as may be specified in the Order. The date or dates so specified may be prior or subsequent to the date on which the Order comes into force.
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27.
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(1) The Minister of Finance [1] may, after consulting the board, make regulations for the purpose of giving effect to the principles and provisions of this Ordinance.
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(2) In particular, and without prejudice to the generality of the powers conferred by subsection (1), regulations may be made-
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(a) for or in respect of any matter required to be prescribed ;
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(b) for the management and control of the fund ;
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(c) prescribing a quorum for the board and the procedure to be adopted at meetings of the board ;
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(d) prescribing the procedure for making deductions from the salaries of contributors ; and
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(e) prescribing the manner in which payment of insurance premiums may be proved or verified.
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(3) No regulation made under subsection (1) shall have effect until such regulation has been approved by the Senate and the House of Representatives.1 Notification of such approval shall be published in the Gazette ; and. upon such publication, the regulation to which the notification relates shall be as valid and effectual as if it were herein enacted.
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28. In this Ordinance, unless the context otherwise requires-
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” board ” means the board of management constituted under section 3 ;
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” contributor ” means a contributor to the fund ;
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” financial year ” means the period of twelve months commencing on the first day of October in any year and ending on the thirtieth day of September in the succeeding year ;
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” fund ” means the Public Service Provident Fund established by this Ordinance ;
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” personal allowance” means a special addition to salary granted personally to the holder for the time being of a post or office ;
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” prescribed ” means prescribed by this Ordinance or by any regulation made thereunder ;
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” salary ” includes wages and any personal allowance but no other payment or allowance whatsoever ;
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” Schedule ” means the Schedule for the time being in force ;
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” scheduled employee ” means a person in the service of the Government of Ceylon who holds a scheduled post;
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” scheduled post” means a post or office specified or described in the Schedule.
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