1 PART I PRELIMINARY-1. Short title and commencement.

(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 .

2 PART I PRELIMINARY-2. Interpretation.

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;

["debenture" Ins. by Act A1496 of the year 2015]

  "committee"  means a committee established under section 8;

  "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;

3 PART II THE RETIREMENT FUND (INCORPORATED)-3. Establishment of the Retirement Fund (Incorporated).

(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) acquire, 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).

4 PART II THE RETIREMENT FUND (INCORPORATED)-4. Functions and powers of the Retirement Fund (Incorporated).

(1) The functions of the Retirement Fund (Incorporated) are to administer and manage the Fund in accordance with and for the 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 pr

4A PART II THE RETIREMENT FUND (INCORPORATED)-4A. The Retirement Fund (Incorporated) may act as an agent of Government.

(1) The Retirement Fund (Incorporated) may act as an agent of the Government of Malaysia for the purpose of paying any pension, 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).

[Ins. by Act A1496 of the year 2015]

5 PART II THE RETIREMENT FUND (INCORPORATED)-5. Common seal.

(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 a new 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.

6 PART II THE RETIREMENT FUND (INCORPORATED)-6. Board.

(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;

7 PART II THE RETIREMENT FUND (INCORPORATED)-7. Investment Panel.

(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) a Chairman who shall be the Chairman of the Board or such other person as may be appointed by the Minister;

(b) [Deleted Act A1496 of the year 2015] ;

(c) a representative from the Ministry of Finance;

(d) the Chief Executive Officer who shall be the secretary; and

(e) four persons from the public or private sector with experience and expertise in business, investment, banking or finance.

[(e) Subs. by Act A1496 of the year 2015]

(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

8 PART II THE RETIREMENT FUND (INCORPORATED)-8. Committees.

(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 established.

(2) A member of a committee shall hold office for such term as may be specified in the terms of his appointment and shall be eligible for reappointment.

(3) A member of a committee may, at any time, resign by giving a notice in writing to the chairman of the committee.

(4) The Board may revoke the appointment of any member of a committee without assigning any reason for the revocation.

(5) The Board may, at any time, discontinue or alter the constitution of a committee.

(6) A committee may regulate its own procedure and, in the exercise of its powers under this subsection, such committee shall be subject to and act in accordance with any direction given to the committee by the Board.

9 PART II THE RETIREMENT FUND (INCORPORATED)-9. Chief Executive Officer.

(1) Subject to the approval of the Minister, the Board shall appoint a Chief Executive Officer on such terms and conditions as the Board may deem fit.

(2) The Board may appoint any member of the Board to act as the Chief Executive Officer if-

(a) there is a vacancy in the office of the Chief Executive Officer under subsection (1); or

(b) the Chief Executive Officer is unable by reason of illness, leave or any other cause to perform the duties of his office.

(3) The Chief Executive Officer shall have such powers and duties as may be conferred or imposed upon him by this Act or as may be conferred or imposed by the Board from time to time in addition to such powers and duties as may be specified in his contract of appointment.

(4) The Chief Executive Officer shall be responsible for the day to day administration and management of the affairs of the Retirement Fund (Incor

10 PART II THE RETIREMENT FUND (INCORPORATED)-10. Appointment of officer, servant, attorney, agent, etc.

(1) Subject to any regulations made under section 12, the Board may from time to time appoint and employ such officers and servants on such terms and conditions as the Board may think fit for carrying out the purposes of this Act and exercise disciplinary control over such officers and servants.

(2) The Board may delegate to any member of the Board, member of a committee or officer, comprising such members or officers or both such members and officers, appointed by it, any of its powers under subsection (1) and that member of the Board, member of a committee or officer shall exercise those powers under the direction and control of the Board.

(3) The officers and servants of the Retirement Fund (Incorporated) shall hold office for such period, receive such remuneration subject to such terms and conditions of service including retirement benefits as may be determined by the Board.

(4) The Board may, by an instrument under its seal

11 PART II THE RETIREMENT FUND (INCORPORATED)-11. Disclosure of interest.

(1) Any member of the Board, Investment Panel or committee who has or acquires a direct or indirect interest by himself, a member of his family or his associate in relation to any matter under discussion by the Board, Investment Panel or committee shall disclose to the Board, Investment Panel or committee, as the case may be, the fact of his interest and the nature of that interest.

(2) A disclosure under subsection (1) shall be recorded in the minutes of the meeting of the Board, Investment Panel or committee, as the case may be, in which the matter is discussed and, after the disclosure, the member-

(a) shall not be present or take part in any discussion or decision of the Board, Investment Panel or committee, as the case may be, about the matter; and

(b) shall be disregarded for the purpose of constituting a quorum of the Board, Investment Panel or committee, as the case may be,

12 PART II THE RETIREMENT FUND (INCORPORATED)-12. Power of the Board to make regulations.

(1) The Board may, with the approval of the Minister, make regulations as may be necessary or expedient for giving effect to the provisions of this Act.

(2) Without prejudice to the generality of subsection (1), regulations may be made-

(a) with respect to financial and accounting matters, including the keeping, closing and auditing of the accounts of the Retirement Fund (Incorporated) and the creation of its own financial and accounting procedures;

(b) to prescribe the responsibilities of officers and servants of the Retirement Fund (Incorporated) including matters in respect of remuneration, terms and conditions of service, period of service and leave of its officers and servants;

(c) with respect to the conduct and discipline of the officers and servants of the Retirement Fund (Incorporated), the establishment of appropriate disciplinary authorities for the different categories

13 PART III FINANCE-13. The Retirement Fund.

(1) A fund to be known as the Retirement Fund is established.

(2) There shall be paid or transferred from time to time into the Fund-

(a) moneys appropriated from the Consolidated Fund to and for the purposes of the Fund;

(b) such sums as may be paid from time to time by the Employees Provident Fund Board to the Fund under section 56 of the Employees Provident Fund Act 1991 [Act 452] ;

(c) all monthly contributions made by employers and organizations to the Fund under section 8 of the Statutory and Local Authorities Pensions Act 1980 [Act 239] ;

(d) moneys and such other property earned or arising from any investment of the Fund;

[(d) Am. by Act A1496 of the year 2015]

(da) moneys received by the Retirement Fund (Incorporated) for services rendered by the Retirement Fund (Incorporated) to the Governmen

14 PART III FINANCE-14. Investment of the Fund.

(1) The Investment Panel shall, subject to such restriction or limitation as may be imposed in any direction issued under subsection 7(4), invest the Fund-

(a) on deposit in any currency including the ringgit in-

(i) the Central Bank of Malaysia;

(ii) any duly licensed financial institution as defined under the Financial Services Act 2013 [Act 758] ;

(iii) any development financial institution as defined under the Development Financial Institutions Act 2002 [Act 618] ;

(iv) any Islamic bank under the Islamic Financial Services Act 2013 [Act 759] ; or

(v) any bank or duly licensed financial institution outside Malaysia;

[(1)(a) Subs. by Act A1496 of the year 2015]

(b) in money market instruments, including treasury bills, bankers' acceptances, certificates of deposit and any financial in

15 PART III FINANCE-15. Unclaimed moneys.

(1) Subject to the exemption made under section 18 of the Unclaimed Moneys Act 1965 [Act 370] , all unclaimed moneys held by the Retirement Fund (Incorporated) shall be entered in a register kept by the Chief Executive Officer.

(2) Notwithstanding any law to the contrary, all unclaimed moneys shall be held under the Fund until those moneys are paid to the persons entitled thereto, being, in respect of an individual person, that individual's heirs, executors, personal representatives, administrators, assigns, lawful attorney or agent.

16 PART III FINANCE-16. Statutory Bodies (Accounts and Annual Reports) Act 1980.

The provisions of the Statutory Bodies (Accounts and Annual Reports) Act 1980 [Act 240] shall apply to the Retirement Fund (Incorporated).

17 PART III FINANCE-17. Annual estimates.

The Chief Executive Officer shall, not later than one month before the commencement of each financial year, lay before the Board an estimate of the expenditure of the Retirement Fund (Incorporated) including capital expenditure, for the ensuing year in such detail and in the form as the Board may determine.

18 PART IV GENERAL-18. Government's guarantee of payments.

(1) If any debt or liability of the Retirement Fund (Incorporated) cannot be met out of the Fund, it shall be charged to and payable out of the Consolidated Fund.

(2) Any payment out of the Consolidated Fund under subsection (1) shall as soon as practicable be repaid by the Retirement Fund (Incorporated) to the Consolidated Fund and until such repayment has been made, any such sums outstanding shall be a debt due to the Government and secured by a first charge over the assets of the Fund.

19 PART IV GENERAL-19. Attempts and abetments punishable as offences.

(1) Any person who-

(a) attempts to commit any offence under this Act or any regulation made under this Act;

(b) does any act preparatory to or in furtherance of the commission of any offence under this Act or any regulation made under this Act; or

(c) abets or is engaged in a criminal conspiracy as defined in the Penal Code [Act 574] to commit any offence under this Act or any regulation made under this Act, whether or not the offence is committed in consequence thereof,

shall be guilty of that offence and shall, on conviction, be liable to the penalty provided for the offence.

20 PART IV GENERAL-20. Liability of managers, etc.

(1) Where any offence under this Act has been committed by a person, who in this section is referred to as the "principal", any person who at the time of the commission of the offence was in any manner or to any extent responsible for the management of the business or affairs of the principal or was assisting in such management shall be guilty of that offence unless he proves that the offence was committed without his consent or connivance and that he has taken all reasonable precautions as he ought to have taken, having regard to the nature of his functions in that capacity, to prevent the commission of the offence.

(2) Where any principal would be liable under this Act or any regulation made under this Act to any punishment or penalty for any act, omission, neglect or default, he shall be liable to the same punishment or penalty for every such act, omission, neglect or default of any of his servants or agents if such act, omission, neglect or

21 PART IV GENERAL-21. Public servant and protection.

(1) All members of the Board, Investment Panel, committee, officers and servants of the Retirement Fund (Incorporated) shall be deemed to be public servants within the meaning of the Penal Code.

(2) The Public Authorities Protection Act 1948 [Act 198] shall apply to any action, suit, prosecution or proceedings against any member of the Board, Investment Panel, committee, officer and servant of the Retirement Fund (Incorporated) in respect of any act, omission, neglect or default committed by him in such capacity.

21A PART IV GENERAL-21A. Obligation of secrecy.

(1) Except for any of the purposes of this Act or for the purposes of any civil or criminal proceedings under any written law or where otherwise authorized by the Board-

(a) no member of the Board, Investment Panel, committee, officers and servants of the Retirement Fund (Incorporated) or any person attending any meeting of the Board, Investment Panel or any of its committees, whether during or after his tenure of office or employment, shall disclose any information which has been obtained by him in the course of his duties and which is not published in pursuance of this Act; and

(b) no other person who has by any means access to any information or documents relating to the affairs of the Retirement Fund (Incorporated) shall disclose such information or document.

(2) Any person who contravenes subsection (1) commits an offence and shall, on conviction, be liable to a fine not exceedin

22 PART IV GENERAL-22. Power to amend Schedules.

The Minister may by order published in the Gazette amend, revoke, add to or vary any Schedule to this Act.

23 PART V REPEAL, SAVINGS AND TRANSITIONAL-23. Repeal of the Pensions Trust Fund Act 1991.

On the appointed date-

(a) the Pensions Trust Fund Act 1991 [Act 454] , which is referred to as the "repealed Act" in this Act, shall cease to have effect and shall be repealed; and

(b) the Pensions Trust Fund, the Pensions Trust Fund Council and the Investment Panel established under the repealed Act shall cease to exist.

24 PART V REPEAL, SAVINGS AND TRANSITIONAL-24. Continuance of laws, etc.

(1) Subject to this Act, all written laws affecting or for the protection of the Pensions Trust Fund and in force immediately before the appointed date shall, until amended or revoked by the authority having power so to do, continue in force on and after the appointed date and be construed as if this Act had not been enacted.

(2) Any reference in any written law to the repealed Act, the Pensions Trust Fund Council or the Pensions Trust Fund shall, unless the context otherwise requires, be construed as references to this Act, the Retirement Fund (Incorporated) or the Fund, as the case may be, and expressions importing such a reference shall be construed accordingly.

25 PART V REPEAL, SAVINGS AND TRANSITIONAL-25. Transfer of powers, etc.

Subject to this Act, all powers, rights, privileges, duties, liabilities or obligations which immediately before the appointed date were those of the Pensions Trust Fund Council shall as from that date devolve on the Retirement Fund (Incorporated).

26 PART V REPEAL, SAVINGS AND TRANSITIONAL-26. Transfer of land and property.

(1) Subject to this Act, all lands immediately before the appointed date vested in the Pensions Trust Fund Council shall on that date vest in the Retirement Fund (Incorporated).

(2) Subject to this Act and any direction of the Minister, all choses in action, assets and other property whatsoever other than land which immediately before the appointed date were vested in the Pensions Trust Fund Council or in any person on behalf of the Pensions Trust Fund Council shall on that date vest in the Retirement Fund (Incorporated).

27 PART V REPEAL, SAVINGS AND TRANSITIONAL-27. Existing contracts.

Subject to this Act, all deeds, bonds, agreements, instruments and working arrangements subsisting immediately before the appointed date and affecting any of the property transferred under section 26 shall be of full force and effect against or in favour of the Retirement Fund (Incorporated) and enforceable as fully and effectually as if, instead of the Pensions Trust Fund Council, the Retirement Fund (Incorporated) had been named therein or had been a party thereto.

28 PART V REPEAL, SAVINGS AND TRANSITIONAL-28. Continuance of civil and criminal proceedings.

(1) Subject to this Act, neither the repeal of the repealed Act nor anything contained in this Act shall affect any person's liability to be prosecuted or punished for offences committed under the repealed Act before the appointed date, or any proceedings brought or sentence imposed before that date in respect of such offence.

(2) Subject to this Act, any proceedings whether civil or criminal, or cause of action pending or existing immediately before the appointed date by or against the Pensions Trust Fund Council or any person acting on its behalf may be continued or instituted by or against the Retirement Fund (Incorporated) as it might have been by or against the Pensions Trust Fund Council or such person as if this Act had not been enacted.

(3) Any appeal brought or any leave to appeal applied for on or after the appointed date against a decision given in any legal proceedings before that date to which the Pensions Trust Fund Counci

29 PART V REPEAL, SAVINGS AND TRANSITIONAL-29. Transfer of Fund.

Subject to this Act, all moneys standing in, and due to be paid to, the Pensions Trust Fund established under the repealed Act shall on the appointed date be transferred to the Fund.