National Retirement Scheme Act

the member’s father, mother, spouse, children or siblings; or

a certified lawyer;

“Board” means the Tabung Amanah Pekerja Board established by section 3 of the Tabung Amanah Pekerja Board Act (Chapter 246);

“contract” means any contract, whether written or oral and whether it is expressed or implied;

“employee” means any person below the minimum retirement age being —

a citizen of Brunei Darussalam; or

a permanent resident, who is employed under a contract of service or apprenticeship or other agreement to work for an employer and includes the Minister,

Deputy Minister, Ambassador, High Commissioner, Consul-General,

Consul or such other person as His Majesty the Sultan and Yang

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Di-Pertuan may, by order published in the Gazette, prescribe but does not include any person or class of persons —

specified in Schedule 1; or

any person, company, association or body of persons, whether or not statutory or incorporated by whom an employee is employed;

the owners of any vessel on which an employee is employed;

any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer;

any foreign mission in Brunei Darussalam;

the Government in respect of such categories, classes or descriptions of officers or employees of the Government as the

Minister may, with the consent of His Majesty the Sultan and Yang

Di-Pertuan, by order published in the Gazette, declare to be employees for the purposes of this Act:

Provided that no such officer or employee employed by or on behalf of the Government shall be personally liable for anything done or omitted to be done by him as an officer or employee of the

Government in good faith;

“Fund” means the Tabung Amanah Pekerja Fund established by section 11 of the Tabung Amanah Pekerja Board Act (Chapter 246);

“inspector” means an inspector appointed under section 4;

“Managing Director” means the Managing Director appointed under section 5(3) of the Tabung Amanah Pekerja Board Act (Chapter 246);

“member” means any person who has contributed to the member account to whose credit any amount is standing in the account and includes —

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a self-employed person who has contributed voluntarily under section 15;

a self-employed person who has transferred his member account to the retirement account under section 17; and

any person who is or was a member in a SCP account;

“member account” means an account maintained under section 16(3);

“minimum retirement age” means the retirement age provided in section 4 of the Retirement Age Act (Chapter 270);

“Minister” means the Minister of Finance and Economy;

“ordinary account” means an account maintained under section 15 of the Employee Trust Act (Chapter 167);

“productivity” means the cumulative months of contributions in the retirement account;

“retirement account”

means an account maintained under section 16(4);

“Scheme” means the National Retirement Scheme established and maintained under section 8;

“SCP account” means an account maintained under section 17(1) of the Supplemental

Contributory

Pensions Trust Order, 2009

(S 58/2009);

“self-employed person” means any person below the minimum retirement age who, being a citizen of Brunei Darussalam or permanent resident and not being employed under a contract of service or apprenticeship, engages in any trade, vocation, profession or other activity in Brunei Darussalam for the purpose of gain;

“wages” means the remuneration in money due to an employee for work done in respect of his employment whether agreed to be paid monthly, weekly, daily or otherwise payable by the employer under his contract of service, apprenticeship or agreement or otherwise, but does not include —

the value of any house accommodation or the supply of any food, fuel, light or water or medical attendance, or of any amenity or service;

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any contribution paid by the employer on his own account to any pension fund or provident fund;

any travelling allowance or the value of any travelling concession;

any sum payable to the employee to defray special expenses entailed on him by the nature of his employment;

any gratuity payable on discharge or retirement;

service charge;

overtime benefit;

retrenchment, lay-off or termination benefits; or

such other remuneration or payment as the Minister may, by notification published in the Gazette, specify.

The Board may, with the consent of His Majesty the Sultan and

Yang Di-Pertuan, appoint such number of inspectors as it may consider necessary for carrying this Act into effect.

In the course of an inspection, an inspector may at any reasonable time —

If any person —

Any person who obstructs an inspector is guilty of an offence.

Without prejudice to section 4(2), an inspector may, in the course of an inspection, examine orally any person supposed to be acquainted with the facts and circumstances of the case and shall reduce into writing any statement made by the person so examined.

Such person shall be legally bound to answer the questions truthfully relating to such case put to him by the inspector, but may refuse to answer any question the answers to which would have a tendency to expose him to a criminal charge or to a penalty or forfeiture.

A statement made by any person under this section shall be read over to him and shall, after correction if necessary, be signed by him.

Any person who obstructs an inspector is guilty of an offence.

An inspector may assess any contribution which is due by any employer based on any information available if the employer —

The assessment made under subsection (1) shall be sufficient proof of the Board’s claim for the summary recovery of any contribution under section 41.

For the purposes of obtaining full information for ascertaining whether any person is liable to pay contributions under this Act, the

Managing Director may, by notice in writing, require any person —

Where a person is found guilty of an offence under subsection (4)(a), the court before which the person is found guilty shall order such person to comply with the notice of the Managing Director under subsection (1) within 21 days from the date of the order of the court.

Whenever it appears to any court, in written information on oath, and after any enquiry it may think necessary, that there are reasonable grounds for suspecting that there are in particular premises any book, account, record or other document the production of which has been required pursuant to subsection (1) and which has not been produced in compliance with that requirement, such court may issue a warrant authorising the

Managing Director or any person named therein with or without assistance —

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Any person who —

The Board shall establish and maintain a scheme to be known as the National Retirement Scheme into which shall be paid all contributions collected under this Act and out of which shall be met all payments to be made by the Board under this Act (including any costs and expenses incurred by the Board in establishing and maintaining the Scheme).

If the Board is, at any time, unable to pay any sum which the Fund is required to pay under this Act, the sum required to be paid shall be charged on and advanced to the Board from the Consolidated Fund and the Board shall, as soon as practicable, repay the sum advanced to the Government.

On the date of commencement of this Act, any employee and member in an ordinary account or a SCP account in respect of whom this Act applies shall —

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On the date of commencement of this Act, any amount standing to the credit of the members in an ordinary account and a SCP account shall be transferred to —

Every employer of an employee shall pay to the Scheme monthly, in respect of each employee, contributions at the rates set out in Schedule 2:

Provided that the Board may, on such conditions as the Board may impose, authorise an employer to pay contributions at other intervals not exceeding 6 months.

Every employee shall pay to the Scheme monthly, in respect of himself, contributions at the rate of 8.5 per cent of his wages.

Except where otherwise provided in this Act, the employer shall, in the first instance, be liable to pay both the contributions payable by

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himself and, on behalf of and to the exclusion of the employee, the contributions payable by that employee.

Contributions payable by the employer for himself and on behalf of the employee under subsection (1) shall be paid in respect of the first and subsequent months’ wages.

For the purposes of this Act, contributions paid by an employer on behalf of an employee are deemed to be contributions by the employee.

Notwithstanding section 43, where an employer fails to pay any contribution due within such period as may be prescribed, the employer shall, in addition to such contribution, be liable to pay the rate of dividend which would have accrued on such contribution if the contribution had been paid at such rate and in accordance with such manner and calculations as the

Board may determine.

Subject to this section, the employer shall be entitled to recover from the employee the amount of any contribution payable on behalf of the employee.

The amount of any contribution payable by the employer on behalf of the employee shall, notwithstanding any written law or any contract to the contrary, be so recoverable by means of deductions from the wages of the employee due from the employer to the employee and not otherwise.

No deductions of any contribution shall be made —

Subject to such conditions as may be prescribed by the Board, where an employer has, by error not occasioned by the employer’s negligence omitted to deduct any contribution or part of any contribution payable by him on behalf of the employee, such contribution or part thereof may be deducted from the wages payable by such employee not later than 6 months from the date of payment of the wages in respect of which contribution or part thereof was omitted to be deducted.

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Any employer who contravenes subsection (2) or (3) is guilty of an offence.

any member or employer may at any time contribute voluntarily to the Scheme in such manner and at such rate as the Board may direct;

the Board shall credit every contribution received under paragraph (a) into member account in such manner as the Minister may direct; and

the Minister may give different directions in respect of different classes of members.

Subject to any regulations made under section 53, any self-employed person may at any time contribute voluntarily to the Scheme.

Any self-employed person who chooses to pay voluntary contributions to the Scheme shall pay to the Scheme monthly, in respect of himself, at the rates set out in Schedule 2.

The Board may, on such conditions as the Board may impose, authorise any self-employed person or class of self-employed persons to pay contributions under subsection (2) at other intervals not exceeding 3 months.

Where any self-employed person has paid any voluntary contribution under subsection (2), the Government shall match the person’s contribution at the rates set out in Schedule 2.

All contributions paid under this section shall be credited as provided under section 16.

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Subject to subsection (2), the following accounts are to be maintained under the Scheme —

The Board shall credit to the accounts specified in subsection (1)

every contribution paid into the Scheme for a member in such manner as the

Minister may direct and the Minister may give different directions in respect of different classes of members.

A member account referred to in subsection (1)(a) is an account maintained for the crediting of every contribution paid into the Scheme by a member, or voluntary contribution by a self-employed person or employer, under this Act in such manner as the Minister may direct and the Minister may give different directions in respect of different classes of members.

A retirement account referred to in subsection (1)(b) is an account maintained for the crediting of every contribution paid into the Scheme by an employer or self-employed person under this Act in such manner as the

Minister may direct.

The Board may accept any cash grant made by the Government for the benefit of any person who qualifies for such grant under the Scheme and the Board shall credit the cash grant into the account of the person as the

Minister may direct.

Any cash grant paid into the Scheme under subsection (1) shall be disbursed in accordance with the conditions of the cash grant.

Any cash grant paid into the Scheme under subsection (1)

is deemed to be contributions for the purposes of this Act, but such cash grant or dividend thereon shall not be withdrawn under any regulations made

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under section 53 unless the regulations expressly provide for the withdrawal of such cash grant.

Notwithstanding anything in this Act, the Board shall be entitled to recover on behalf of the Government any cash grant paid into the Scheme for the benefit of any person, together with any service charge which he is liable to pay the Government under the conditions of the cash grant, from any money standing to the credit of the person if he has —

Any money recovered by the Board from any person under subsection (4) shall be refunded forthwith to the Government.

For the purpose of enabling the Board to perform its functions and discharge its duties under this Act, the Minister shall cause to be paid to the

Scheme such moneys as the Government may approve as grants-in-aid to the

Scheme.

All moneys provided for under subsection (1) may be applied or expended by the Board for all or any of the purposes of the Scheme.

No sum of money standing to the credit of a member of the

Scheme may be withdrawn from the member account except with the authority of the Board and, subject to any regulations made under section 53, such authority shall not be granted unless the Board is satisfied that —

Notwithstanding subsection (1), the Board may, either in one or all of the following instances, on application by a member who —

When authority is granted under subsection (1)(a), (b), (d) and (e), withdrawal shall be made in lump sum.

Without prejudice to subsection (3), a member who is entitled to withdraw under subsection (1)(b) may apply to the Board to be paid monthly for such period as the Board may determine.

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For a withdrawal under subsection (1)(c), withdrawal shall be paid —

Without prejudice to subsections (2)(b) and (3), the Board may, on application by a member who has attained the age of 55 years and unemployed, authorise the withdrawal of the member from his member account and such withdrawal shall be paid monthly based on the amount standing to the credit of the member account.

On an application for the withdrawal of the sum of money standing to the credit of a member by a person entitled thereto under section 20, the Board may authorise the payment to the applicant of such sum as the member is entitled to withdraw from the Scheme and any dividend calculated in accordance with section 13 up to the date of the authorisation:

Provided that when —

All applications for withdrawal shall be supported by such evidence as may be prescribed and by such further evidence as the Board may reasonably require.

Where a member has attained the minimum retirement age and on application by the member, there shall be paid to him monthly amount as the

Board may determine for a period of lifetime with effect from the date of payment.

Where a member has attained the minimum retirement age and has reached productivity, the amount of the monthly payment shall be determined based on the formula set out by the Board and shall reflect, among other factors, the size of the member’s retirement account balance at the time he attains the minimum retirement age and in accordance with the following formula —

(average salary x income replacement rate) x (years of contribution/

productivity), where —

“average salary” means the average of salary applicable to an employee in accordance with such manner and calculations as the

Minister may determine;

“income replacement rate” means the percentage of an employee’s pre-retirement monthly income that he receives each month after retiring in accordance with such manner and calculations as the

Minister may determine.

Where a member has attained the minimum retirement age and has reached productivity and does not have sufficient amount in his retirement account to finance a minimum monthly payment of at least $250, in accordance with the approved payment formula for the monthly payment prevailing at that time, such member shall receive such minimum monthly payment of at least $250 for a period of lifetime.

Where a member has attained the minimum retirement age and has not reached productivity and does not have sufficient amount in his retirement account to finance a minimum monthly payment of at least $250, in accordance with the approved payment formula for the monthly payment

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prevailing at that time, such member shall receive such minimum monthly payment of at least $250 until the amount in his retirement account is expended or for such period as the Board may determine.

The monthly payment may be adjusted periodically pursuant to regulations made under section 53.

Where a member is renouncing his citizenship of

Brunei Darussalam or decides not to renew his Entry Permit issued under the

Immigration Act (Chapter 17) or his Entry Permit is cancelled and is about to leave Brunei Darussalam, such member is entitled to withdraw a lump sum of such expected annuity as the Board may determine.

Where a member dies before attaining the minimum retirement age, there shall be paid to —

Where a member dies after attaining the minimum retirement age, there shall be paid to —

Where a widow or husband in respect of whom a monthly derivative benefit is granted under this section remarries or dies, such benefit shall be paid to the children to whom a monthly derivative payment is paid or payable under subsections (7) and (8).

A child in respect of whom a monthly derivative payment is paid under this section shall cease to be eligible for such benefit on such child attaining the age of 21 years or on marriage below such age and such benefit shall be paid to other eligible beneficiaries under subsections (7) and (8).

If there is no eligible beneficiary —

For the purposes of this section, a husband in respect of whom a monthly derivative benefit is granted shall be entitled to receive one derivative benefit only.

In this section —

“child” means a person under 21 years of age and includes —

No sum of money standing to the credit of a member of the

Scheme may be withdrawn from the member account except with the authority of the Board and, subject to any regulations made under section 53, such authority shall not be granted unless the Board is satisfied that —

Notwithstanding subsection (1), the Board may, either in one or all of the following instances, on application by a member who —

When authority is granted under subsection (1)(a), (b), (d) and (e), withdrawal shall be made in lump sum.

Without prejudice to subsection (3), a member who is entitled to withdraw under subsection (1)(b) may apply to the Board to be paid monthly for such period as the Board may determine.

For a withdrawal under subsection (1)(c), withdrawal shall be paid —

Without prejudice to subsections (2)(b) and (3), the Board may, on application by a member who has attained the age of 55 years and unemployed, authorise the withdrawal of the member from his member account and such withdrawal shall be paid monthly based on the amount standing to the credit of the member account.

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On an application for the withdrawal of the sum of money standing to the credit of a member by a person entitled thereto under section 24, the Board may authorise the payment to the applicant of such sum as the member is entitled to withdraw from the Scheme and any dividend calculated in accordance with section 13 up to the date of the authorisation:

Provided that when —

All applications for withdrawal shall be supported by such evidence as may be prescribed and by such further evidence as the Board may reasonably require.

Where a member has attained the minimum retirement age and on application by the member, there shall be paid to him monthly amount of at least $500 and such member shall receive such monthly payment until such amount is expended or for a period of 20 years.

Where a member dies, there shall be paid to the administrator nominee the balance of amount in the member’s retirement account.

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A member who has attained the age of 18 years may nominate any person as an administrator nominee to receive the amount standing to his credit and due to him at his death.

A nomination may be made in favour of one person or a maximum of three persons and such nomination shall be made in such form and manner as the Board may determine.

A nomination shall cease to have effect —

The cessation of nomination under subsection (1)(b) shall not be revoked by any will or by any other means.

Subject to subsection (2), where a member dies having nominated an administrator nominee, the Board shall pay the amount standing to the credit of the deceased member according to the directions of the nominations.

Where a Muslim member dies having nominated an administrator nominee in accordance with this Act, the administrator nominee shall receive the amount standing to the credit of the deceased member as an executor and not solely as a beneficiary and shall distribute the amount in accordance with

Hukum Syara’.

In this section, “Hukum Syara’ ” means the laws of Islam according to the Shafi’ee, Hanafi, Maliki or Hanbali sect of Ahlis Sunnah

Waljamaah.

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for any purpose connected with this Act —

knowingly makes any false statement; or

fails to pay to the Scheme within such period as may be prescribed any amount which he is liable under this Act to pay in respect of or on behalf of any employee in any month;

obstructs any officer or employee of the Board in the discharge of his functions as such;

fails to comply with any regulations made under this Act; or

fails to pay to the Board within such period as may be prescribed any amount which he is liable to pay under this Act, is guilty of an offence.

Any person employed by the Board who, without lawful authority, publishes or communicates to any person, otherwise than in the ordinary course of his duty or employment, any information acquired by him in the course of his duty or employment is guilty of an offence and liable on

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conviction to a fine not exceeding $5,000, imprisonment for a term not exceeding 12 months or both.

The Board may, on an application by a prospective employer who is considering whether or not to employ any person as an employee, give to the prospective employer the following particulars of that person —

A prospective employer who wishes to obtain any of the particulars referred to in subsection (2) shall apply to the Board in such form and manner as the Board may determine and on payment of the prescribed fee.

The Board may require an applicant under subsection (3) to furnish proof that he is considering whether to employ the person in respect of whom the application is made.

No refund shall be made of any fee paid under subsection (3).

An amount withdrawn by any member under this Act shall be utilised for the purpose for which the withdrawal was authorised.

Where all or any part of the amount withdrawn under this Act is not utilised for the purpose for which the withdrawal was authorised, the member shall return all or such part of the amount which is not utilised to the

Board within 6 months from the date of the withdrawal.

Any member who contravenes this section is guilty of an offence.

Any person who contravenes any provision of this Act or any regulations made thereunder is guilty of an offence and if no penalty is expressly provided in this Act or the regulations made thereunder shall on conviction be liable to a fine not exceeding $3,000, and in the case of a subsequent offence, to a fine not exceeding $10,000 and the court before which the conviction is had shall, in addition to the fine, order him to pay the amount of any contribution together with any dividend due thereon certified by an officer appointed by the Board in that behalf to be due from that person at the date of the conviction and the amount may be recovered in accordance with the law for the time being in force relating to the recovery of fines.

Where an employer fails to comply with any order made under subsection (1), the court shall, on application by the Board —

Notwithstanding the provisions of any other written laws, all contributions payable under this Act may, without prejudice to any other remedy, be recoverable by the Board summarily as a civil debt.

Proceedings for such summary recovery may be instituted by any person authorised in writing in that behalf by the Board and that person may conduct such proceedings.

In subsection (1), “contribution” includes any dividend, service charge and penalty on any contribution charged by the Board under this Act or any regulations made thereunder.

Where the amount of the contributions which an employer is liable to pay under this Act in respect of any month is not paid within such period as may be prescribed, the employer shall be liable to pay service charge on such amount for every day such amount remains unpaid commencing from the 16th day of the month succeeding the month in respect of which the amount is payable and the service charge shall be calculated at such rate and manner as the Board may determine.

The Board may, in any case in which it thinks fit, waive the payment of the whole or part of, or remit in whole or in part, any service charge due or paid under subsection (1).

When the Board is satisfied that any amount has been paid in error to the Scheme in respect of any person or as service charge under section 43, the Board may, subject to subsection (3), refund the amount so paid in error to the person by whom it was paid or to any other person as the Board may determine:

Provided that if the refund of any amount paid in error is not claimed within 6 months of the date on which it was paid or if the member in respect of whom it was paid has withdrawn it, the amount paid in error shall not be refunded but is deemed to have been properly paid under the provisions of this Act as service charge or for the person in respect of whom it was paid.

If any amount is due to the Scheme from the person to whom refund of the amount paid in error would otherwise be made, the Board may retain the whole or any part of the amount paid in error and set it off against such amount as is due.

No refund shall be made and no amount shall be set off under this section except with the consent of the Board who may require any person who claims to have paid any amount to the Scheme in error to make a written application for refund and to furnish such information as the Board may require to determine the amount so paid.

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Except for the purpose of the performance of his duties or the exercise of his functions or when lawfully required to do so by any court or under the provisions of any written law, no person who is or has been a member, an officer, an employee or an agent of the Board or a member of a committee of the Board shall disclose any information relating to the affairs of the Board or of any other person which has been obtained by him in the performance of his duties or the exercise of his functions.

Any person who contravenes subsection (1) is guilty of an offence and liable on conviction to a fine not exceeding $2,000, imprisonment for a term not exceeding 12 months or both.

require the person to provide the Board at such time or at such intervals or in respect of such period as may be specified in the notice, with such information as the Board may reasonably require for the performance of its functions under this Act;

require the person to provide the Board with a report by an accountant or other person with the relevant professional skill on, or on any aspect of, any matter which the Board requires, and the Board may require such information or report to be in such form and manner as may be specified in the notice.

Protection of employee’s interest in execution proceedings and sale under mortgage or charge 48.

Whenever a writ of seizure and sale has been issued in execution of a judgment against an employer and any movable or immovable property or other assets belonging to the employer has been seized or sold or otherwise realised in pursuance of the execution and, prior to the payment of

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the proceeds of the sale or other realisation to an execution creditor, notice has been given to the officer charged with the execution of the writ by the

Board that any sum is due to the Scheme, no part of the proceeds shall be paid to an execution creditor unless and until the court issuing the writ has ascertained and provided for the sum due to the Scheme at the date of the sale or other realisation.

In the event of any interest in any place of employment being sold on the application of a secured creditor under any written law in force for the time being and the Board giving to the officer charged with the conduct of the sale notice that a sum of money is due by the debtor to the Scheme, the proceeds of the sale shall not be paid to any creditor other than to the

Government or a secured creditor unless and until the court ordering the sale has ascertained and provided for the amount due to the Scheme at the date of the sale or unless the court is satisfied that all sums due to the Scheme have been paid up to the date of sale.

Joint and several liability by bodies corporate etc.

Notwithstanding anything to the contrary in this Act or any other written laws, where any contribution remaining unpaid by a body corporate, partnership, association or body of persons —

In this section, “contribution” includes any dividend, service charge and penalties due to any contribution charged by the Board under this

Act or any regulations made thereunder.

Exemption 50.

His Majesty the Sultan and Yang Di-Pertuan may by order exempt any person or class of persons from all or any of the provisions of this Act.

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Board may engage in activities not directly related to Scheme and may call for information 51.

The Board may, if the Minister is satisfied that it is in the public interest to do so, engage in activities not directly related to the administration of the Scheme including, in particular, the compilation of information of a statistical nature or otherwise relating to employers and employees and for this purpose the Board may require employers and employees to furnish such particulars as may be necessary.

Amendment of Schedules 52.

The Minister may, with the consent of His Majesty the Sultan and Yang

Di-Pertuan, by order published in the Gazette, amend the Schedules to this

Act.

Regulations 53.

The Minister may, after consultation with the Board and with the consent of His Majesty the Sultan and Yang Di-Pertuan, make regulations —

The Board may, in addition to the other duties imposed and powers conferred on it under this Act, make rules —

no sum deducted from the wages of a member of the Scheme under this Act;

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no amount payable by the employer as his contribution; and

no amount standing to the credit of a member of the Scheme, shall be assignable, transferable, attached, sequestered or levied on for, or in respect of, any debt or claim and shall not be subject to any set-off of any nature for any debt owing by the member and if the member is adjudicated a bankrupt by a court, it shall not pass to the Official Assignee on the bankruptcy of the member and is deemed not to form part of the property of the member.

Transitional provisions 55.

The provisions of Schedule 3 shall have effect for the purpose of the transfer of moneys and dues, employees and for other transitional purposes specified in that Schedule.

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