Municipalities and Public Authorities Provident Fund Act


Uganda

Municipalities and Public Authorities Provident Fund Act

Chapter 285

  • Published
  • Commenced on 1 February 1951
  • [This is the version of this document at 31 December 2000.]
  • [Note: The version of the Act as at 31 December 2000 was revised and consolidated by the Law Reform Commission of Uganda. All subsequent amendments have been researched and applied by Laws.Africa for ULII.]
An Act to make provision for the establishment of provident funds by public authorities.

1. Interpretation

In this Act, unless the context otherwise requires—
(a)"approved scheme" means a provident fund scheme the rules or regulations of which have been approved by the Minister under section 2;
(b)"bonus" means a sum credited to an individual contributor’s account otherwise than by the contributor or by way of interest;
(c)"contributor" means a person who is making contributions into a fund of an approved scheme;
(d)"draft regulations" means the regulations set out in the Schedule to this Act;
(e)"fund" means the sum total of all contributions, bonuses and interest contributed or paid under the provisions of any approved scheme;
(f)"public authority" means any municipal council established under the Local Governments Act, and any other authority or association of persons recognised by the Minister by statutory instrument as a public authority for the purposes of this Act.

2. Minister to approve provident fund schemes

(1)Notwithstanding the Local Governments Act, no public authority shall establish or maintain a provident fund scheme for the benefit of its employees or its members unless the proposed rules or regulations making provision for the establishment of the scheme have been approved by the Minister.
(2)The Minister shall give his or her approval under subsection (1) only if—
(a)the proposed rules or regulations of the scheme are substantially in accordance with the draft regulations; and
(b)he or she considers the rates of contributions and bonus are in accordance with the best interests of the authority and its employees or members.
(3)The decision of the Minister as to whether or not the proposed rules or regulations are or are not substantially in accordance with the draft regulations shall be final.

3. Amendments to the rules or regulations

No public authority or board of management of any approved scheme shall amend or alter the rules or regulations in respect of any such scheme without prior approval of the Minister.

4. Amendments to the draft regulations

(1)The Minister may from time to time by statutory instrument amend the draft regulations.
(2)An amendment shall not affect any of the rules or regulations of any approved scheme in operation at the date of the amendment unless the Minister so orders, in which event due regard shall be had to the existing rights of depositors.

5. Amounts in hand not assignable or liable to attachment

(1)No contribution in an approved scheme, bonus or interest on the contribution or bonus shall be assignable or transferable or liable to be attached, sequestered or levied upon for or in respect of any debt or claim other than as provided for in subsection (2).
(2)Any sum or sums due by a contributor to a public authority may be deducted from the amount standing to his or her credit in any fund administered by the authority on the closure of his or her account.

6. Funds to be kept in separate account

(1)Every public authority administering an approved scheme shall keep the fund in respect of the scheme in a separate account and shall pay into the account all contributions so soon as they are paid and all bonus payments and interest when due.
(2)The monies paid into a fund may be invested in such security or securities as is permitted for the investment of money held on trust.
(3)No fund shall be liable to be attached, sequestered or levied upon but shall be held in trust for the contributors; and in the event of the winding up or dissolution of any public authority that has established a fund under this Act, the funds shall be divided among the contributors in such manner as the High Court shall direct on the motion of the Administrator General.
(4)Nothing in this section shall be deemed to affect any rule or regulation making provision for payment of the expenses of administering a fund being made from out of the fund.

7. Persons prohibited from contributing to two schemes

Notwithstanding any other provision in this Act, no person shall be entitled to be a contributor in any approved scheme while he or she contributes to any provident fund scheme established under the provisions of any other Act.

8. Schemes under the Provident Fund (Local Governments) Act not affected

Nothing in this Act shall be deemed to affect any scheme established under the Provident Fund (Local Governments) Act.

9. Provision in respect of the Kampala City Council

(1)So soon as convenient after the commencement of this Act, the Kampala City Council shall establish a provident fund scheme under this Act.
(2)Notwithstanding section 2(2), the Minister shall not approve any such scheme (hereafter referred to as "the new scheme") unless the provisions of the new scheme are just and equitable to persons who are contributors to any provident fund scheme in force at the commencement of this Act (hereafter referred to as "the existing scheme") and unless in the new scheme provision is made—
(a)for the winding up of the existing scheme and the transfer to the new scheme of the monies, assets and liabilities of the fund of the existing scheme;
(b)for contributors under the existing scheme to become contributors under the new scheme with effect from the date upon which they became contributors to the existing scheme, unless, within such period as may be specified in the new scheme, any such contributor elects to retain his or her rights and liabilities under the existing scheme;
(c)for the provisions of the existing scheme to continue to apply to every contributor who elects to retain his or her rights and liabilities under it.

Schedule (Section 1)

Draft regulations

1.Regulations may be cited as the ______________________1 Provident Fund Regulations, 19__________ or 20______________.1Insert name of regulations.
2.There shall be established a fund to be known as ________________, 2 hereafter referred to "the fund"2Insert name of fund.
3.
(1)________________ 3 shall appoint a Board of Management of the fund, hereafter called "the board", which shall consist of a chairperson and at least four members at least one of whom shall be a contributor.3Insert name of administering public authority.
(2)The chairperson and members of the board shall hold office for such time as may be specified in their respective appointments.
(3)The board may regulate its own procedure, including the provisions for quorum and the appointment of a secretary.
4.
(1)The board shall be responsible for the control and management of the fund in accordance with the Act and these Regulations.
(2)The board shall submit to the ________________ 3 as soon as is practicable after the 31st day of December in each year a full audited statement showing the working of the fund and all claims thereof and containing full particulars of all transactions connected with the working of the fund.3Insert name of administering public authority.
5.The expenses of management and administration of the fund may be paid out of the fund, or may be met in such other manner as the ________________, 3 with the approval of the Minister, shall direct.3Insert name of administering public authority.
6.
(1)Every person who ____________ 4 shall be required to become a contributor to the fund and to continue to be a contributor for so long as ______________ 5.4Insert class of persons who shall be required to be contributors.5Insert the period during which a contributor shall be required to contribute.
(2)When any person already in the service of the ____________ 3 becomes one of the class of persons mentioned in paragraph (1) of this regulation, then with the consent of the __________ 3 that person may elect to contribute to the fund with effect from his or her first appointment in the service of the __________ 3 or from such later date as the ______________ 3 may approve.3Insert name of administering public authority.3Insert name of administering public authority.3Insert name of administering public authority.3Insert name of administering public authority.
7.Every contributor shall make a monthly contribution of an amount equal to ________________ percent6 of his or her monthly salary.6Insert the amount approved by the Minister
8.
(1)Contributions shall be deducted from the salary of the contributor and shall immediately be paid into the fund.
(2)For the purpose of calculating the monthly contribution of a contributor, the contributor shall be deemed to be on full salary whether in fact he or she is receiving full, reduced or no salary; but when a contributor is on reduced salary or no salary for a period exceeding two months continuously, he or she may elect to contribute in respect of the period in excess of two months at a rate calculated on any reduced salary which he or she may receive or, if he or she receives no salary, to contribute nothing.
9.A sum to be called a bonus shall be paid out of the revenues of the ____________ 3 into the fund for the credit of the contributor at the end of each month, and this bonus shall be ______________ 6 percent of the salary of the contributor.3Insert name of administering public authority.6Insert the amount approved by the Minister.
10.Interest shall be credited separately on deposits and bonuses at a rate to be fixed annually by the board and shall begin to accrue in respect of each sum deposited and each bonus on the first day of the month following that on which the deposit is deemed to be made or the bonus credited and shall be added to and become part of the principal on the 31st of December of each year.
11.So soon as convenient after the 31st day of December in each year the board shall inform every contributor of the full amount standing to his or her credit in the fund on such 31st day of December.
12.Subject to the Act and these Regulations, if a contributor dies while in the service of ________________ 3 or leaves that service—3Insert name of administering public authority.
(a)because in the opinion of ________________ 3 he or she is incapable by reason of some infirmity of mind or body of discharging the duties of his or her office;3Insert name of administering public authority.
(b)on the completion of his or her contract;
(c)on the abolition of his or her office;
(d)because he or she has reached the established retiring age of the ________________ 3;3Insert name of administering public authority.
(e)in the case of a female contributor because of marriage or contemplated marriage after the completion of not less than one year’s service if the contributor produces such evidence as the ________________ 3 shall deem satisfactory that he marriage has taken or will take place;3Insert name of administering public authority.
(f)because the ________________ 3 has terminated the contract of service of the contributor on grounds other than of misconduct; or3Insert name of administering public authority.
(g)on the transfer of the contributor, with the approval of ________________, 3 to the service of the Government or another public service,3Insert name of administering public authority.
the amount standing to his or her credit in the fund at the closing of the account shall be paid out of the fund to the contributor, or in the case of the death of the contributor to the person or persons nominated for the purpose by the contributor or, if no such nomination has been made, to the personal representative of the contributor or, at the discretion of the ____________, 3 to the person appearing to the __________ 3 to be entitled ultimately by law to ______________ receive it.3Insert name of administering public authority.3Insert name of administering public authority.
13.
(1)If a contributor shall be dismissed or resign from or leave the service of ________________ 3 without permission without completing the period prescribed by any contract under which he or she may be serving—3Insert name of administering public authority.
(a)the amount of his or her deposits and interest credited on the deposits under regulation 10 of these Regulations shall be paid out of the fund to the contributor;
(b)any part of the bonuses credited to the contributor and interest credited as aforesaid, as the board, with the prior approval of ________________ 3 shall determine, may be so paid.3Insert name of administering public authority.
(2)Any part of the bonuses and interest not paid as aforesaid shall be paid out of the fund to ____________ 3 and credited to the revenue of ______________. 33Insert name of administering public authority.3Insert name of administering public authority.
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History of this document

31 December 2000 this version
Consolidation
06 December 1951
Commenced
01 February 1951
Commenced