Section 8
of Supplemental Contributory Pensions Trust Act
Section 8
(1)
Subject to any regulations under section 39, and except as otherwise provided in this section, every employer of an employee shall pay to the Trust monthly in respect of each employee contributions at the rates set out in the Schedule.
(2)
The Board may, in its discretion and on such terms and conditions, authorise an employer or a class of employers or member of the
Trust to pay the contributions under subsection (1) at other intervals not exceeding 6 months.
(3)
With respect to contributions under subsection (1) in respect of an employer, irrespective of an employee’s wage, the minimum monthly contribution from the employer shall be $57.50 of which $5 shall be paid to the survivorship protection fund.
(4)
Notwithstanding any written law or any contract to the contrary, an employer shall be entitled to recover from the monthly wages of an employee the amount recoverable from the employee.
(5)
Where any employer who has recovered any amount from the monthly wages of an employee in accordance with subsection (4) fails to pay the contributions to the Trust within such time as may be prescribed by the
Board, he is guilty of an offence and liable on conviction to a fine not exceeding $10,000, imprisonment for a term not exceeding 5 years or both.
(6)
Every employee shall pay to the Trust monthly, in respect of himself, contributions at the rates set out in the Schedule.
(7)
The Board may, on such terms, authorise an employee or a class of employees to pay the contributions under subsection (6) at other intervals not exceeding 6 months.
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(8)
Without prejudice to subsections (1) to (7) —
(a)
an employer may at any time pay to the Trust voluntary contributions in respect of his employees at a rate in excess of the contribution rate under subsection (1);
(b)
an employee may at any time contribute voluntarily to the
Trust a sum additional to the contribution under subsection (1);
(c)
an employee who desires to have the excess monthly contributions under paragraph (b) deducted from his monthly wages by his employer may give to his employer written notice to that effect, and thereafter, so long as he is employed by that employer, the employer shall make the deductions from his wages for each month until such time, not being less than 6 months from the giving of the previous notice, as he gives further written notice to his employer of his desire to cease to have the excess monthly contributions deducted from his wages, and the employer shall pay the amount of the excess deductions to the Trust in addition to the contributions under subsection (1).
(9)
Where wages are payable at intervals of less than one month, the employer may deduct from that employee’s wages at the time of each payment.
(10)
All voluntary contributions paid by or for any employee under subsection (8) shall be credited to the SCP account of the employee.
(11)
In the event of the death of an employee, no contributions shall be due under this section by or on behalf of the employee in respect of the month during which his death occurs.
(12)
Where any contribution referred to in subsection (11) has been received, it shall be carried to the Trust in accordance with section 16.
Voluntary contributions by self-employed person 9.
(1)
Subject to the regulations or rules made under section 39, any self-employed person may at any time contribute voluntarily to the Trust.
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(2)
Any self-employed person who chooses to pay voluntary contributions to the Trust shall pay to the Trust monthly in respect of himself a contribution of $17.50, of which $15 shall be credited to the person’s SCP account and $2.50 shall be paid to the survivorship protection fund.
(3)
The Board may on such terms and conditions authorise any self-employed person or class of self-employed persons to pay contributions under subsection (2) at other intervals not exceeding 3 months.
(4)
Where any self-employed person has paid any voluntary contribution under subsection (2), the Government shall match the person’s contribution with a contribution of $17.50, of which $15 shall be credited to the person’s SCP account and $2.50 shall be paid to the survivorship protection fund.
(5)
Any self-employed person may at any time contribute voluntarily to the Trust a sum additional to the contribution under subsection (2).
(6)
All voluntary contribution made by a self-employed person under subsection (5) shall be credited to his SCP account.
(7)
This section does not apply to any self-employed person who has received payment under section 20(1).
Payment of contributions 10.
(1)
Except where otherwise provided in this Act, the employer shall, in the first instance, be liable to pay both the contributions payable by himself and also, on behalf of and to the exclusion of the employee, the contributions payable by that employee; and for the purposes of this Act, contributions paid by an employer on behalf of an employee are deemed to be contributions by the employee.
(2)
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 month’s wages.
(3)
Notwithstanding section 12, 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 such contribution had been paid
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at the rate and in accordance with any manner and calculation determined by the Board.
(4)
Where the annual dividend for a particular year has not been declared by the Board, the annual dividend declared for the year preceding that year shall apply for the purpose of calculating annual dividend for that year.
Recovery by employer of employee’s contributions 11.
(1)
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.
(2)
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.
(3)
No deduction of any contribution shall be made —
(a)
except at the time wages are paid to the employee; and
(b)
other than the contribution in respect of the wages which are then being paid.
(4)
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, then, such contribution or part thereof may be deducted from the wages payable by such employer to the employee not later than 6 months from the date of the payment of the wages in respect of which the contribution or part thereof was omitted to be deducted.
(5)
Any employer who contravenes subsection (2) or (3) is guilty of an offence.
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Payment of service charge on contributions in arrears 12.
(1)
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 is 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 as may be determined by the Board.
[S 12/2024; S 14/2024]
(2)
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).
Refund of contributions paid in error 13.
(1)
Where the Board is satisfied that any amount has been paid in error to the Trust in respect of any person or as service charge under section 12, the Board may refund the amount so paid in error to the
Government or the person by whom it was paid, as the case may be.
(2)
If the refund of any amount paid in error under subsection (1)
is not claimed within 6 months from the date on which it was paid, 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
Government or the person in respect of whom it was paid, as the case may be.
(3)
No refund shall be made and no amount shall be set off under subsection (2) except with consent of the Board and the Board may require the Government or any person who claims to have paid any amount to the
Trust in error to furnish information to determine the amount so paid.