B 2
[Subsidiary]
CAP. 112] Inland Revenue (Retirement Scheme) Rules [1986 Ed.
SCHEDULE
REQUIREMENTS FOR APPROVAL OF RETIREMENT SCHEMES
[r. 4.]
1. The retirement scheme shall be exclusively for the benefit of the employee or employees and of the widow, children, surviving dependants, or legal personal representatives of an employee.
2. Each employee concerned shall be entitled to defined benefits and the terms and conditions of the retirement scheme shall have been made known to all the employees concerned.
L.N. 141/71.
3.
L.N. 90/69.
The benefits afforded by the retirement scheme shall accrue only-
(a) on retirement from the service of the employer at some specified age of not less than 45 years; or
(b) on retirement after some specified period of service with the employer of not less than 10 years; or
(c) on attaining the age of 60 years or some specified age for retirement whichever is the later; or
(d) on earlier incapacity or death.
Where, however, the retirement scheme provides for proportionate or reduced benefits in the event of an employee leaving the employer's service prior to attaining the specified age or completing the specified period of service, the provision for such benefits shall not in itself disqualify the scheme from approval.
4. The nature of the benefits afforded by the retirement scheme shall be the same in relation to all the persons to whom the scheme relates but a scheme relating to more than one class of employee may be regarded as so many separate schemes for this purpose.
5. Where the retirement scheme is conducted by a third party to whom the employer makes periodical contributions, the diversion of such contributions to any purposes (other than those of the scheme) and the refund of such contributions to the employer shall, except with the consent of the Commissioner and subject to paragraph 6, be prohibited.
6. The employer shall have no lien on any sum or other benefit to which the employee would be entitled under the retirement scheme except-
(a) to the extent that the employer has suffered a loss due to a dishonest act committed by the employee; or
(b) to the extent of a debt acknowledged in writing by the employee as owing to the employer.
7.
(1) Nothing in these rules shall prevent the Commissioner from approving a retirement scheme which provides for the forfeiture of the employer's contributions where an employee is dismissed upon any of the following grounds-
(a) wilfully disobeying a lawful and reasonable order;
(b) misconducting himself, such conduct being inconsistent with the due and faithful discharge of his duties;
(c) being guilty of fraud or dishonesty;
(d) being habitually neglectful in his duties; or
(e) upon any other ground on which the employer would be entitled to terminate the contract of employment without notice at common law.
(2) If the retirement scheme is conducted by a third party being a trustee, the trustee shall be satisfied that the dismissal was duly made upon one of the grounds specified in sub-paragraph (1).